Question

In today’s society, businesses are expected to do more than just earn a profit. The concept of a triple-bottom-line orientation is being demanded by people, customers, and even employees.

1. Write one paragraph on how companies are adopting this model, using an example to justify your work.

2. Write one paragraph explaining what makes a good triple-bottom-line model.

3. Using your example model, found in an academic journal article to write one paragraph explaining the strengths and weaknesses of adopting this orientation.

Answer 1

1. The triple bottom line (TBL) is a framework or theory that recommends that companies commit to focus on social and environmental concerns just as they do on profits. The TBL posits that instead of one bottom line, there should be three: profit, people, and the planet. Nowdays companies are understanding the importance of triple bottom line model as it helps a organization to grow its business relationship in various ways.Many startups are based on this model as they raise their business idea on the social and enviormental concerns and furthure they do their operation in the same region.There are many companies which are proving triple bottom line as a business,ex- DHL- By their very nature, shipping companies are large consumers of oil and gasoline. After all, those packages don’t move themselves. DHL is taking shipping back-to-the-basics, enacting a revolutionary delivery program to illustrate that shipping can be more efficient. How? They now use couriers on bicycles in many European countries, including Germany and the Netherlands. DHL estimates that this change alone will reduce their carbon dioxide emissions by 152 metric tons per year.

2. The triple bottom line theory expands the traditional accounting framework to include two other performance areas: the social and environmental impacts of their company. These three bottom lines are often referred to as the three P’s: people, planet, and profit. Rather than earning profit a comapny should must contribute or support social and enviornmental cause which will help them to build reputation globally. Supporting the three factors by any organization makes a good triple line model.

3. Benefits of triple bottom line model are as follows -

a) Encourages businesses to think beyond narrow measure of performance (profit)

b) Encourages CSR reporting

c) Supports measurement of environmental impact & extent of sustainability

       Weakness of triple bottom line model are as follows -

• Not very useful as an overall measure of business performance
• Hard to reliably and consistently measure People & Planet bottom-lines
• No legal requirement to report it – so take-up has been poor

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