Bottom corporate csr line responsibility triple-Sustainability, the Triple Bottom Line and Corporate Social Responsibility | SpringerLink

The triple bottom line or otherwise noted as TBL or 3BL is an accounting framework with three parts: social, environmental or ecological and financial. Some organizations have adopted the TBL framework to evaluate their performance in a broader perspective to create greater business value. In traditional business accounting and common usage, the " bottom line " refers to either the "profit" or "loss", which is usually recorded at the very bottom line on a statement of revenue and expenses. Over the last 50 years, environmentalists and social justice advocates have struggled to bring a broader definition of bottom line into public consciousness by introducing full cost accounting. For example, if a corporation shows a monetary profit, but their asbestos mine causes thousands of deaths from asbestosis , and their copper mine pollutes a river, and the government ends up spending taxpayer money on health care and river clean-up, how do we perform a full societal cost benefit analysis?

Bottom corporate csr line responsibility triple

Bottom corporate csr line responsibility triple

Slaper, Timothy F. Corporate messaging may be seen as an intrusion in those situations. Profitability is inherently quantitative, so it is easy to measure. Boulding, K. Inflation and Business Study notes. Botgom the people you hire statistically better situated within the community in terms of economic stability and community health? Triple bottom line is one framework for reporting this material impact. Related Collections.

Lovers in madrid armik. What is the Triple Bottom Line?

There are good reasons for following the speed limit. We might make allusions to the Good Samaritan Cochin xxx to handing our change to someone who asks for it on the Bottom corporate csr line responsibility triple, but the core of the responsibility is that firms ought to act like persons who live in a civil community. The triple bottom line adds two responsibiluty "bottom lines": social and environmental ecological concerns. Perhaps there is someone in the car that requires medical help. Many corporations have broken the rules when the profits that they stand to gain are much higher than linf penalties that they might have to pay for breaking the rules. Despite BBottom, the TBL framework enables organizations to take a longer-term perspective and thus evaluate the future consequences of decisions. The difference here is that these groups of people might have preferences for, or demand things, which are counterproductive to the wellbeing of the overall society. While many people agree with the linee of good social conditions and preservation of the environment, there are also many who disagree with the triple bottom line as the way to enhance these conditions. In this way, the Stakeholder responibility might be much more permissive than the CSR view. Pret doubles the discount for using reusable cups 3rd January Social and environmental accountability. Bottom corporate csr line responsibility triple sustainability gives precedence on the balance of economic power in the society.

The Triple Bottom Line is one of the main systems being used by businesses to assess the profits they are making through their corporate sustainability solutions.

  • The triple bottom line or otherwise noted as TBL or 3BL is an accounting framework with three parts: social, environmental or ecological and financial.
  • The two theories that we have looked at each seek to moderate and direct the corporation by examining the conditions in which a business exists.
  • The two theories that we have looked at each seek to moderate and direct the corporation by examining the conditions in which a business exists.

Contemporary Issues in Accounting pp Cite as. The traditional economic business model is focussed on generating profits for shareholders, and as such, it is quite short-term in focus.

It takes resources whether natural, human or financial and uses them to make products or deliver services with the aim of making profit which is then returned to shareholders.

Traditionally, there has been little regard for the sustainability of this model. This is now changing as the world recognises the finite nature of many resources and the social issues which unchecked growth bring. This chapter discusses what is meant by sustainability, and discusses some approaches used at both policy-level and corporate level to address these challenges.

Skip to main content. Advertisement Hide. Chapter First Online: 02 June This is a preview of subscription content, log in to check access. Bayou, Mohamed E. CrossRef Google Scholar. Blowfield, Michael. Business and Sustainability. Google Scholar. Blowfield, Michael, and Alan Murray. Corporate Responsibility , 3rd ed. Boulding, K. Baltimore: John Hopkins University Press.

Our Common Future. Oxford: Oxford University Press. Cannon, T. Corporate Responsibility , vol. Harlow: Pearson.

Carroll, Archie B. Chernev, Alexander, and Sean Blair. Conway, Elaine. Baranova, E. Conway, N. Lynch, and F. London: Palgrave Macmillan. Costanza, R. Daly, Herman E. Steady-State Economics , 2nd ed. Washington, DC: Island Press. Davenport, Thomas H. Government Definitions of Sustainability. Department of the Environment, UK Government. London: HMSO. Elkington, John.

Oxford: Capstone. Ellen Macarthur Foundation. Farrell, Sean. Financial Reporting Council. Freeman, R. Edward, Jeffrey S. Harrison, Andrew C. Wicks, Bidhan L. Parmar, and Simone de Colle. Stakeholder Theory: The State of the Art , 1st ed. New York: Cambridge University Press. Strategic Management: A Strategic Approach. Boston: Pitman. Friedman, Milton. Garay, Luis, and Xavier Font.

Gray, Rob. Harrison, Jeffrey S. Hemingway, Christine A, and Patrick W. Janssens-Maenhout, G. Crippa, D. Guizzardi, M. Muntean, E. Schaaf, F. Dentener, P. Bergmaschi, et al. Jayasuriya, Ruwan.

Kates, R. Parris, and A. Goals, Indicators, Values and Practice. Insights into Its Bivalent Nature. Liebowitz, Bernard. Academic OneFile. Accessed 13 Mar Lyon, Thomas P. McMichael, A. Butler, and C.

McWilliams, Abagail, and Donald Siegel. The Merriam-Webster Dictionary. Martinsburg, USA. Mulligan, M. Introduction to Sustainability , 2nd ed.

Oxford: Earthscan—Routledge. Osborne, Hilary. Parks, Susan. Rakotomavo, Michel T. Rittel, Horst, and Melvin Webber. Rodriguez-Fernandez, Mercedes. Slaper, Timothy F. Smithers, Rebecca. The Huffington Post. US EIA. Voinov, A. Waddock, Sandra. Waddock, Sandra A. White, Mark A. Williams, Chris. Wood, Donna J. World Bank. Personalised recommendations.

A decision which creates an economic boon in the short-term like the Ford Pinto , but causes long-term harm, would likely reduce this bottom line to such a degree that the action would be untenable. The Purposeful Business 12th October Social sustainability gives precedence on the balance of economic power in the society. There is an important difference between this theory of corporate responsibility and the Stakeholder theory of social responsibility. It would be more equitable for the business which manufactures and sells a problematic product to bear part of the cost of its ultimate disposal. In the private sector , a commitment to corporate social responsibility CSR implies an obligation to public reporting about the business' substantial impact for the better of the environment and people.

Bottom corporate csr line responsibility triple

Bottom corporate csr line responsibility triple

Bottom corporate csr line responsibility triple

Bottom corporate csr line responsibility triple

Bottom corporate csr line responsibility triple. Navigation menu

This requires that we view firms and that they view themselves as responsible members in a community. The last category, the Philanthropic Responsibility , is a responsibility "to contribute to society's projects even when they're independent of the particular business. This is likely to be a controversial requirement, but it speaks to the connections between the community and the firm.

It might require that they open their business to local youth who want to learn about how it works and get inspired to become entrepreneurs.

Whichever form it takes, it requires that businesses do something that benefits the community without having anything to gain, directly. These four principles are ordered from the most pressing to the least. This does not mean that the economic responsibility to maintain a profitable business always trump the other three.

It means that a business which is profitable must also act within the bounds of the law, and that they must act within the bounds of ethics. At the bottom of the list, a business might be required to behave philanthropically.

This only applies to a business that has already met the other three responsibilities, however. A struggling business lacks any meaningful responsibility for community outreach. When they consider a possible course of action they must weigh the benefits and burdens according to these weighted responsibilities. If an action would keep the firm profitable, but it bends a law in a way that is not ethically objectionable, they might be allowed to do it.

Think of laws on the highway. There are good reasons for following the speed limit. It keeps us from getting speeding tickets economic , shows respect for the law and the common rules we all share legal , and it helps to prevent traffic accidents through safe driving ethical. I might be allowed to break the law and thereby risk a ticket , however, if there are really strong ethical reasons to drive quickly.

Perhaps there is someone in the car that requires medical help. In such a case, the strength of that 3 responsibility might force me to override the other two above it. It might also be the case that I could make a huge amount of money by doing something that is illegal and very harmful. Perhaps my firm could save a great deal of money by dumping a toxic substance like PCB along the roads in a rural area of North Carolina.

It would save the company a huge amount of money and time, while contaminating the soil in some 14 counties.

In that case, the business would have been prohibited from taking the action that they did by the illegality of it and the huge environmental harms imposed on nearby residents and upon the state.

There is an important difference between this theory of corporate responsibility and the Stakeholder theory of social responsibility. According the to CSR, the corporation has an obligation to the society that it lives in. According to Stakeholder theory, the corporation must consider the interests of many groups of people. The difference here is that these groups of people might have preferences for, or demand things, which are counterproductive to the wellbeing of the overall society.

In this way, the Stakeholder theory might be much more permissive than the CSR view. If the creation of some chemical by-products would be of overall benefit to many of the stakeholders involved, then it might be permissible on one view while prohibited on the other. Another theory of corporate social responsibility is the Triple Bottom Line. Like the CSR theory we just discussed, Triple Bottom Line works on the assumption that the corporation is a member of the moral community, and this gives it social responsibilities.

This theory focuses on sustainability, and requires that any company weigh its actions on three independent scales: economic sustainability, social sustainability, and environmental sustainability. These three tabulations are all aimed at long-term sustainability. It keeps us from getting speeding tickets economic , shows respect for the law and the common rules we all share legal , and it helps to prevent traffic accidents through safe driving ethical.

I might be allowed to break the law and thereby risk a ticket , however, if there are really strong ethical reasons to drive quickly. Perhaps there is someone in the car that requires medical help.

In such a case, the strength of that 3 responsibility might force me to override the other two above it. It might also be the case that I could make a huge amount of money by doing something that is illegal and very harmful. Perhaps my firm could save a great deal of money by dumping a toxic substance like PCB along the roads in a rural area of North Carolina. It would save the company a huge amount of money and time, while contaminating the soil in some 14 counties.

In that case, the business would have been prohibited from taking the action that they did by the illegality of it and the huge environmental harms imposed on nearby residents and upon the state. There is an important difference between this theory of corporate responsibility and the Stakeholder theory of social responsibility. According the to CSR, the corporation has an obligation to the society that it lives in.

According to Stakeholder theory, the corporation must consider the interests of many groups of people. The difference here is that these groups of people might have preferences for, or demand things, which are counterproductive to the wellbeing of the overall society. In this way, the Stakeholder theory might be much more permissive than the CSR view.

If the creation of some chemical by-products would be of overall benefit to many of the stakeholders involved, then it might be permissible on one view while prohibited on the other.

Another theory of corporate social responsibility is the Triple Bottom Line. Like the CSR theory we just discussed, Triple Bottom Line works on the assumption that the corporation is a member of the moral community, and this gives it social responsibilities.

This theory focuses on sustainability, and requires that any company weigh its actions on three independent scales: economic sustainability, social sustainability, and environmental sustainability. These three tabulations are all aimed at long-term sustainability. Economic sustainability must focus on the long term because this is the nature of a persistent company.

A decision which creates an economic boon in the short-term like the Ford Pinto , but causes long-term harm, would likely reduce this bottom line to such a degree that the action would be untenable. Social sustainability gives precedence on the balance of economic power in the society. Competition in the business arena is common, and encouraged, behavior, but maximizing the bottom line in social terms requires that a business foster an environment in which all can succeed.

This might seem counterintuitive, but in the big-picture it is better for a whole society to thrive than for one single corporation to thrive alone. This will allow the company to continue to exist, and it will foster good-will between the company and the society that it exists in.

The PCB dumping alluded to in above created an environment in which that company could not exist, and it is no longer present in NC. The requirement of environmental sustainability stems from the recognition that resources are not infinite, and leads to the reasoning that too much degradation will worsen the lives of ourselves, our children and so on.

Members of the moral community ought not cause undue harm to the people around them and the people who will come later, and so this bottom line values some protection of the environment.

The question of how much environmental degradation is acceptable is one that must be answered, but it need not be answered in this module. Suffice it to say that this calculation must be made even if it is a rough calculation. The reasoning behind this tripartite theory is that if businesses calculate their gains and losses in this way they will be more likely to take actions which are to the benefit of both the business and the community.

It is easy, when the numbers are large enough, to ignore the social and environmental dimensions of a business decision. This is because the average business decision is made by comparing the expected costs and benefits in terms of dollars and, only then, considering the other dimensions of that decision.

Sustainability management system: The Triple Bottom Line

Elkington's Triple Bottom Line model is an influential model that has helped share the corporate social responsibility agenda. The short video below provides an overview of Elkington's Triple Bottom Line model and there are some additional study notes below the video.

The Triple Bottom Line is a concept that encourages the assessment of overall business performance based on three important areas: Profit, People and Planet. The Triple Bottom Line approach Profit, People and Planet arose out of frustration with traditional, financially-focused measures of business performance, which have tended to emphasise profit as the key metric.

In his model, John Elkington argues for a more balanced approach to measuring performance over time:. So Profit, People and Planet aims to measure the financial, social and environmental performance of a business over a period of time. Join s of fellow Business teachers and students all getting the tutor2u Business team's latest resources and support delivered fresh in their inbox every morning. You can also follow tutor2uBusiness on Twitter, subscribe to our YouTube channel , or join our popular Facebook Groups.

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Our Edexcel A Level Business Grade Booster workshops are designed to provide essential revision support to Year 13 Edexcel Business students as they complete their preparation for the three papers at Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences. Cart Account Log in Sign up. Business Explore Business Search Go. Business Reference library. Limitations with Traditional Measures of Business Performance The Triple Bottom Line approach Profit, People and Planet arose out of frustration with traditional, financially-focused measures of business performance, which have tended to emphasise profit as the key metric Businesses are usually assumed to be profit-maximisers Profit is the traditional measure of business success Profit is closely linked with business value e.

In his model, John Elkington argues for a more balanced approach to measuring performance over time: So Profit, People and Planet aims to measure the financial, social and environmental performance of a business over a period of time. Subscribe to email updates from tutor2u Business Join s of fellow Business teachers and students all getting the tutor2u Business team's latest resources and support delivered fresh in their inbox every morning.

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Bottom corporate csr line responsibility triple

Bottom corporate csr line responsibility triple