We have been doing focusing only on the profits or the single bottom line. It has been like this for a very long time. However, can we really continue doing business this way? Researchers have been pointing out that our sole responsibility to increase shareholder’s value limits sustainability. Here we take a look at the triple bottom line examples. Additionally, we highlight some cases that demonstrate how we should think about the triple bottom line.
What is the triple bottom line?
Bottom line refers to a firm’s net income. Consequently, the bottom-line approach or single bottom line approach looks at optimizing the profit. The central driving force of this approach is profit and profit comes from continuous growth. On one hand we have create immense wealth for the nations. However, we have also been exploiting the planet for resources that drive this growth. Additionally, we have also neglected the humanist approach towards the wellbeing of people connected in this process chain.
However, things have been changing since the turn of this century. We are entering a phase of business enlightenment. We have lived under the darkness of ignorance. Only recently we have started to look beyond the shareholders and owners. The triple bottom line posits that a firm look at the three Ps. This expanded vision would help make the business sustainable in the long run. The three Ps are:
- People
- Profit
- Planet
Triple Bottom Line Examples
Novo Nordisk
The best example of the triple bottom line is the firm that pioneered in using this in their annual reports. Denmark based pharma Novo Nordisk started using triple bottom line in the year 2004. It was way before any other firm. They specifically mention their stand on the three aspects of the triple bottom line very clearly.
This disclosure helps the firm in communicating its commitment to sustainability. You may read more in their annual report 2019. Key takeaways:
- Sections/chapters for ‘consolidated social statement’ and ‘consolidated environmental statement’ in the annual report.
- Maintaining the focus on delivering performance while managing the social ane environmental impact of their products.
- Commitment towards zero environmental impact
Microsoft
Microsoft is one of the largest corporations in the world. They have also been highly regarded for their efforts towards sustainability. Moreover, Microsoft’s corporate social responsibility is an excellent triple bottom line example. Microsoft uses the Global Reporting Initiative’s guidelines for their annual reports. Read our detailed article on Microsoft Corporate Social Responsibility here.
We can also take a leaf from their workbook. They are quite innovative when it comes to working on sustainability. Here are some of their future plans:
- Use advanced technologies like artificial intelligence for environmental preservation.
- Optimizing their products to use less energy
- Investing in smarter mobility
Amazon
Amazon is another interesting case when it comes to the triple bottom line. Firstly, it is the world’s largest retailer. Secondly, they have a huge logistic footprint across the world. Thirdly, they are also one of the market leaders in terms of cloud computing. All of these factors make them in a position that is filled with responsibility towards their stakeholders. You may want to read more about Amazon Corporate Social Responsibility in our detailed article.
Some of the ways in which Amazon looks at the triple bottom line are:
- Reduction in packaging waste
- Optimization of their delivery fleet
- Reducing water consumption linked to their services.