Triple Bottom Line Executive Summary

Triple Bottom Line (TBL) Executive Summary
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Triple Bottom Line Executive Summary
The early days of the corporate world had companies focusing on one major objective: economic responsibility. The desire for corporations to make profits in whatever means possible had the world and the authorities questioning the ethics and responsibility of corporations to the society in the pursuit of its economic responsibility. Academicians, policy experts, and even politicians have made tremendous efforts in instilling the concept of corporate social responsibility (CSR), emphasizing that corporations have a responsibility to the society that spans its operations (Agudelo et al., 2019). The responsibility of corporations towards the environment is the other important concept shaping the ethics of the corporate world. Triple Bottom Line (TBL) is a business model designed with the different responsibilities of a corporation as the core components: economic, social, and environmental responsibility (de Campos Jr, 2017). Although some drawbacks in its adoption, corporations stand to gain a lot from the TBL model.
A company cautious of the three dimensions of the TBL model tends to be more sustainable (Braccini & Margherita, 2019). The three dimensions that shape the company's sustainability often interrelate. The inability to find the right balance between the three could come at a cost for a company, a deficiency that the TBL model seeks to offset by allowing companies to have synergy among the three dimensions. Closely related to sustainability is the notion that the TBL model brings about reduced operating costs while improving the overall financial performance. A company that is cautious about the environment tends to use energy more efficiently and reduce activities that may lead to a company incurring more liabilities, thus reducing costs while improving the overall financial performance.
CSR, a major component of the TBL model, has numerous benefits, including the capacity to enhance the company's reputation and brand image. Consumers of the contemporary era care a lot about the company's brand and reputation, which greatly influence their buying behavior (Agudelo et al., 2019). This further translates to improved customer retention, brand loyalty, and increased sales. In addition, today's investors are cautious of the ethical values that a company promotes, as the concept of socially responsible investing has resonated among most of them (Camilleri, 2020). Thus, adopting TBL as an ethical framework ensures that a company attracts investors passionate about socially responsible investing. In addition, the model also ensures that the company is not always on the radar of authorities that monitor companies’ compliance with social responsibility, ethical economic responsibility, and environmental practices.
The TBL appro...