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The triple bottom line is important in the business concept in which firms should commit themselves to measure their social and environmental impact on their financial performance rather than focusing only on profit-making, or the goal. It can be divided into three Ps – profit, people, and the planet.
1. PROFITABILITY – The success of a company depends largely on its financial performance or profits for shareholders. Strategic planning and key business decisions are carefully designed to maximize profits while minimizing costs and minimizing risk. Many goals for the firms are all there.
2. PEOPLE – It is important to differentiate between the company’s shareholders and stakeholders. Businesses have valued the number of shareholders as a sign of success, which means they strive to generate a share of the company’s shareholders. As firms increasingly embrace sustainability, they focus their attention on creating an all-inclusive stakeholder-affected business decision, including customers and employees. Companies can work for the community including ensuring fair employment practices and encouraging volunteer work. They can also look outside to make a change on a larger scale.
3. PLANET – Since the beginning of the Industrial Revolution, large corporations have had a major role in polluting the environment, which has been a major factor in climate change. Although businesses have been instrumental in climate change, they also hold the key to driving positive change. Many business leaders now realize their responsibility to do just that. This effort is not just on the shoulders of large corporations around the world with almost all businesses having the opportunity to make changes that reduce their carbon footprint. Adjustments such as the efficient use of resources, the reduction of energy consumption, and the simplification of transportation processes are the steps to the right place.
1. Increase your income
2. Reduce energy costs
3. Reduce waste costs
4. Reduce the cost of goods and water
5. Increase staff productivity
6. Reduce renting and renting costs
7. Reduce the risk of strategy and operation
CONCLUSION – The concept of TBL demonstrates responsibility to stakeholders in terms of economic, social, and environmental impact. The concept of TBL or Sustainability reporting is an ongoing success that will benefit organizations
