0

Comments

As with any other thing in the world today, there is always a bundle of argot to go with it. If you are thinking about starting a green business, or greening up your existing business to become more eco-friendly, chances are very high you have heard of the ‘triple bottom line’. This phrase, which sometimes is written as 3BL or TBL, dates back to 1989 when John Elkington coined its use.

In the simplest of terms, the triple bottom line stands for the People, the Planet, and Profit. As fuzzy and warm as the term may sound, it is a very serious concept and increasingly recognized idea today than it was in 1989 when it was first used. TBL reporting has become an accepted and recognized way for businesses to show they have a viable sustainability strategy that will ensure a sustainable growth.

TBL is a form of reporting that takes into consideration the effect of a business in terms of environmental and social values, alongside financial returns, hence can be viewed more or less like sustainability indicators. While the initial idea of businesses was to make profit, profit, and more profit, the idea of 3BL accounting appreciates that with no healthy and happy people to act as employees of a business, and without a natural environment that will sustain these people and provide the resources needed for trade; the business will become unsustainable in no time.

It is very important at this point to understand that Triple Bottom Line is not an accreditation, award, or a certification that a business owner can achieve, it is a continuous process that simply acts as sustainability indicators that will help the company remain on track in the endeavor to run a green business. It also helps demonstrate to the general public that the company is not only interested in profits, but also the health of the environment as well as of the people on the environment. After all, with no planet, there will be no people, and with no people, no profit can be made by any business.

Here is the breakdown of the 3 terms and how they are applicable.

People

Otherwise known as human capital, it deals with treating the workforce right i.e. ensuring a fair day’s pay for a fair day’s work, simple. It also applies to giving back to the community where the business exists in form of donations, sponsorships and sometimes projects that reflect a common good.

Planet

Otherwise seen as the natural capital, this is where a business ensures it reduces its ecological effect in all aspects of its operations from looking for raw materials, the production process, right to administration and shipping. A good sustainability strategy will see to it that a business further takes responsibility beyond selling goods, say for instance giving a takeback or recycling program.

Profit

Simply put, it deals with making honest profit instead of simply making profit under whatever costs. Profit works hand in hand with the Planet and the People.