Triple Bottom Line
Since time immemorial, the success of a company has been measured by a single result: the economic one. Generating the greatest amount of profits, reducing expenses was the objective of every business person, and, therefore, other aspects of life were neglected, resulting in our modern world, where we must face climate change, poverty and inequality. Because of this, the strategies of companies had to be adjusted, giving in a little to the economic factor to empower two others of equal importance in the modern world: the social and the environmental. Thus, the Triple result, or Triple Bottom Line in English, arises.
The Triple result is a new concept in the operational strategies of companies; in this way, success is also measured by taking care of the 3Ps of this concept:
Profit.
Historically, and logically, generating profits is the reason for a company’s existence. This factor focuses its efforts on benefiting shareholders, who have recently realized that businesses can also be used to generate positive change, without having to give up financial growth. This is also beneficial for businesses, since customers realize the positive social and environmental responsibility that these companies have, thus encouraging consumption and brand loyalty.
People.
Previously, a company’s workers were seen as tools or consumables, which is a key factor in generating the inequalities we face today. While “Profits” is geared towards benefiting shareholders, the “People” factor develops the well-being of not only employees, but also customers and the communities around the company.
Some simple ways that companies can influence people, and serve future generations, are: ensuring fair hiring practices and encouraging volunteering in the workplace, thereby strengthening the ties between employees and the community itself.
Planet.
Finally, caring for the planet is also a duty for each one of us, including companies. We know that companies are responsible for the environmental situation we are experiencing, and this is where it must also be combated. The objective of companies, under this factor, must be to reduce their carbon footprint to a minimum, through actions such as working with ethically obtained materials, reducing energy consumption, or improving the processes of transporting goods.
In the end, the goal is to leave the world better than the one we came into, and we must remember that for something to be sustainable, it must be sustainable in these three areas, or it simply won’t be.