Guest Article
Triple bottom line (TBL or 3BL), also known as the “three pillars of sustainability” can provide a powerful shift in an entrepreneur’s philosophy and business development. Triple bottom line refers to people, planet and profit. In my opinion, these three elements speak to the true health of a business, the full cost of doing business. And it has nothing to do with the size of your business or whether you offer a service or a product. And it’s not about being “green.” It is about an increased awareness and acknowledgement that making a living does not have be at the expense of the human condition or the environment. We can earn, survive and thrive and support the well-being of people and the planet at the same time without one suffering for the sake of another.
The term, “triple bottom line” was coined by John Elkington in 1994 (source: http://www.economist.com/node/14301663) Since then, for-profit, non-profits and government agencies have done 180’s and pro-actively engaged in creating visions and processes that create a better balance among the “3p’s.” They are leveraging the benefits of one against the others. They realize a business that focuses simply on profit is ultimately counterproductive and often destructive to people and/or planet. And it’s not enough to simply have a CSR (corporate social responsibility) policy. CSR policies are often treated as “initiatives and programs” and not fully integrated into the business mission and operations. Triple bottom line is a precept and based on holistic core values and principles that are incorporated into the purpose, mission and operation of the business.
If you evaluate the ramifications of your personal (as a consumer) and professional (as an entrepreneur) decisions from a holistic perspective and what affect they have on people, planet and profit; you’ll understand people, planet and profit are mutually dependent. The TBL paradigm can be interpreted for practical use in even the smallest of organizations and businesses and still yield proliferate results. Entrepreneurs (including solopreneurs) can create and develop business practices that envelope the TBL framework and best practices. Understanding your purpose and how it relates to people, planet and profit is all that is needed to begin a shift towards balanced and profound growth.
People (social capital)
The “people” of the triple bottom line refers to the impact that a business has on people within the business (employees) and people outside of the business (the community). Your business practices should address the well-being of and benefit the people in which the business operates. All stakeholder interests are interdependent via fair wages, fair-trade practices, safe work environments, retention rates, ethical standards, local hiring, local sourcing, local participation, local charitable contributions and contributions to community living standards.
Planet (natural capital)
The “planet” of the TBL refers to environmental stewardship. You don’t have to be a “green” business to practice good environmental stewardship. Entrepreneurs can enhance the natural order and minimize their environmental impact in a wide variety of ways that are not only cost-effective, but easy to implement and adopt. From small efforts like: managing energy consumption, employing eco-friendly materials, ‘recycle, reduce, reuse’; the use of post-consumer materials, managing water consumption, minimizing the amount of waste to landfill to more substantial efforts like: reducing waste from packaging and determining the true environmental cost of manufacturing from harvesting raw materials to the disposal by the end user, entrepreneurs can make a difference and influence their supply chain to do the same. Compromise can often be found somewhere in the middle with some creativity.
Profit (capital)
The “profit” of the TBL refers to the real economic value created by your business and enjoyed by the host society. It is your income and expenditures, taxes, business climate factors, employment and business diversity factors as well as the economic impact your business has on society. It is not just about the internal profit made by a company.
Your business matters and affects the community in which you operate. Don’t think just because you are a small business, TBL philosophies, methodologies and practices don’t apply to or affect you. TBL macro-level systems and processes can be adapted to and executed within smaller operations. Every step you take to incorporate a shift towards the TBL is a small contribution towards a better place in which we all benefit.
About the Author: Simplicity expert and Micro Business Therapist™ A.Michelle Blakeley is one of Forbes 30 Women Entrepreneurs to Follow on Twitter. A savvy professional, she helps new and seasoned entrepreneurs align their purpose, principles, priorities and practices for fast-tracked growth. Blakeley masterfully delivers the right information with step-by-step guidance. As a result, her clients are living a purpose-filled lifestyle and experiencing energized realities.
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