Why Triple Bottom Line (TBL) is Being Adopted by Companies

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...