Are you a Triple Bottom Line Company?
Friday, July 31, 2009 at 12:27PM What is the definition?
Wikipedia defines it as …
The triple bottom line (abbreviated as "TBL" or "3BL", and also known as "people, planet, profit") captures an expanded spectrum of values and criteria for measuring organizational (and societal) success: economic, ecological and social. With the ratification of the United Nations and ICLEI TBL standard for urban and community accounting in early 2007, this became the dominant approach to public sector full cost accounting. Similar UN standards apply to natural capital and human capital measurement to assist in measurements required by TBL, e.g. the ecoBudget standard for reporting ecological footprint.
In the private sector, a commitment to corporate social responsibility implies a commitment to some form of TBL reporting. This is distinct from the more limited changes required to deal only with ecological issues.
In practical terms, triple bottom line accounting means expanding the traditional reporting framework to take into account ecological and social performance in addition to financial performance.
The phrase was coined by John Elkington in 1994.[1] It was later expanded and articulated in his 1998 book Cannibals with Forks: the Triple Bottom Line of 21st Century Business.[2][3] Sustainability, itself, was first defined by the Brundtland Commission of the United Nations in 1987.
The concept of TBL demands that a company's responsibility be to stakeholders rather than shareholders. In this case, "stakeholders" refers to anyone who is influenced, either directly or indirectly, by the actions of the firm. According to the stakeholder theory, the business entity should be used as a vehicle for coordinating stakeholder interests, instead of maximizing shareholder (owner) profit.
Most times, you get way more when you give
I was contemplating taking a sabbatical, and wound up taking a 2 week trip to Haiti with a close family friend and priest. It was a mission to bring supplies, and we also built a bakery. I went as the arrogant American … here I come to teach them a thing or 2. Yes, I did transfer knowledge, and had an absolute blast introducing a sampling program at the local “Farmer’s Market” for Pan VERITAS .. Bread of Truth.
I met a kid, maybe about 17. I was visiting a school, and walked by a group of kids. “hello” said one in very good English. We struck up a conversation and spent some time together. Towards the end of my stay, I had $100 bucks in my pocket. I asked, “If I were to give you $100, what would you do with it?”
I was prepared for all the American like answers … Nintendo, a new bike, maybe a Sunday – Go to meeting suit, you should see how this poor community dresses to go to Sunday church. They sing the roof of too! So get this … he replies “I will use it to become an important man!” Blew me away. Handed over the $100 with great pleasure as that comment was worth so much more to me!
In this new economy … will it reward Triple Bottom Liners?
My Mom & Dad work with the physically & mentally challenged, my Grandfather and Mom are elected officials, I spent my summers volunteering in a variety of camps and events. So maybe I am genetically wired for this kind of stuff, but it also plays a role in my professional and business goals.
Maybe I am a dreamer, but before the Economic collapse, things were really crazy. Yes, I benefited from these knuckle heads, not much education, but were making $20,000 a month in the mortgage industry, 2 cars, detailed once a month whether they needed it or not! Just felt wrong to watch people.
Here I am, well educated, busting my ass for my family, trying to do some good in the world, struggling to pursue my dream as an entrepreneur and the world seemed upside down to me.
Well, turns out, many of these individuals and companies got a big ole spanking. And I believe that things are changing. My City is known for the surfing and action sport apparel industry. At the local barbershop (big change for me, no more fancy hairdo’s for this hombre), I met an Executive. I asked him, “How much longer do you think you can sell $70 Board Shorts made in China” … see, I VOTE EVERY DAY!
What can one do to be a Triple Bottom Liner?
I got a call from a Beach City that had just approved my Business License after a long and arduous process. Two weeks before I opened my fist location, I had all my equipment sitting in my garage. The Code Enforcement guy was a former Marine, calls me and says “I just had to deny a Fund Raiser Event at a high profile location … it is across the street from the Bay, can’t allow the run off. We would support you if you hosted the event with your system” I said sure, and blindly went to the event. Greatest luck ever! We have done over 2 dozen events in about to be 14 Cities. Raised over $175,000 for the Marines, been on local TV, in newspapers and literally rubbed elbows with Mayors and City Managers. We have also turned this into a healthy revenue source. Wash 300-400 cars with 40-60 gallons of water. One City put out a Press Release that we saved 40,000 gallons of water at this event.
I often donate a mid range service for Silent Auctions for things like Youth Employment, Injured Marine Funds, my kids school fund raisers.
I hope one day to finally execute a strategy of 10 Job Creating 2) In the declining automotive sector, 3) of jobs that green and 4) cannot be exported. Someday, maybe, hopefully.
Just thought I would share this concept. Have a heart. Focus on things other than profit. Define greed in terms of things that you can do to give to your community. You will feel better, and it just might be the magic bullet that catapults your business to the heights you had always dreamed of.
VOTE EVERY DAY!
jim
PS You know the difference between a Recession and a Depression? A Recession is when you are on a train track in a tunnel, and you can see the light at the other end. A Depression is when you find out that the light is a train coming the other way!
Reader Comments (1)
Excellent column Jim. Point well taken. Was a joy to read.