Why Triple Bottom Line (TBL) is Being Adopted by Companies
In the previous few weeks, you and your company have taken significant strides towards adopting triple bottom line (TBL) as a business model.
It's now time to step back for a moment and reflect on the importance of TBL in today’s world!
Prompt
Your task is to draft an executive summary on why TBL is being adopted by companies as an ethical framework—a way of assuring sustainable and ethical commitments to CSR initiatives.
Address the following criteria in the executive summary:
Identify the advantages and disadvantages of adopting the TBL model.
Summarize what a company may gain from adopting the TBL model.
Analyze how a balanced scorecard can assist a company in measuring its TBL performance.
Guidelines for Submission
In a Word document, use double-spacing, 12-point Times New Roman font, and one-inch margins. This executive summary should be 2 to 3 pages in length and include references cited in APA format. Consult the Shapiro Library APA Style Guide for more information on citations.
Executive Summary of TBL
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Executive Summary of Triple Bottom Line
Organizations are compelled to embrace the Triple Bottom Line theory (TBL) to succeed in the contemporary business environment. This includes a primary focus on social responsibility and sustainability under the people, planet, and prosperity categories. According to Correia (2019), at the moment, disregard for TBL invites negative publicity and poor organizational reputation and can escalate beyond ethical consideration to include legal actions. Examples of TBL practices include championing a safe working environment, fair hiring policies and wages, community engagement initiatives, and environmental health. Rather than prioritizing profits, TBL encourages a primary focus on an organization's environmental and social impacts.
Notably, it is costly to recruit, train, and hire new staff, especially after cases of employee turnover increases. The possibility of attracting top talents further reduces when a firm does not adopt favorable working conditions, which include fair and competitive compensations and championing equality and inclusion in the workplace. In other words, TBL would reduce the cost spent on hiring and training new staff because the working conditions are favorable hence high employee retention rates and acquisition of top talents. Another notable benefit of TBL is improving its brand reputation. According to Correia (2019), TBL activities include reducing carbon footprint by adopting green energy, recycling initiatives, and other forms of environmental responsibility. It also includes community-based initiatives, ranging from charitable donations to staff volunteering, among other forms of support, will boost organizational reputation, which translates to improved brand image and performance, ultimately edging competitors.
Though championed for its recognition of profits, people, and the planet, TBL has limitations. One of the disadvantages is the inability to successfully ascertain whether a firm has achieved notable success in the categories (people, planet, and profit). Sridhar and Jones (2012) further allude that TBL does not champion change, even though firms are rapidly evolving and improving. The authors add tha...