Building A Sustainable Plan For A Business Model

I. INTRODUCTION “Earth provides enough to satisfy every man's needs, but not every man's greed.” - Mahatma Gandhi The above quote rightly points out the role of environment for the mankind and the responsibility we need to shoulder for its sustenance. We've come a long way in recognizing that and now almost every business has a statute of doing something good for the environment as part of their CSR initiative. But companies who think of the environment as a social responsibility and not as an imperative are not going in the right direction. The global climate changes and the gradual scarcity of resources have come to light as major disruptions in the business environment. These challenges

Businesses who participate in environmentally friendly practices will become more profitable. There are difficulties and costs that a business will face and profit takes time but is proven to positively impact a business. “The reluctance to address the forces that are polluting the planet always comes down to money (Smith, “6 Reasons Nations Don't Go Green.”). Implementing environmentally friendly practices within a company “will win them customers, and increase profits” (McDonald, “Why Do (or Don’t) Companies Go Green?”). Many global companies today carry out environmental management tools to adapt to environmentally friendly practices, which helps gain customers, and in turn becomes more profitable. In this paper, I will go into further detail explaining why businesses should be more environmentally friendly, the benefits to be gained, costs that come with being environmentally friendly, and management ways that help a company become environmentally friendly.

Many firms are learning that being environmentally friendly and sustainable has numerous benefits. (O.C Ferrell, Fraedrich, Ferrell, 2015). This could enable them to increase goodwill from various stakeholders and also save money in the long term. This will mean that they are being more efficient and less wasteful of resources, which will enable them to be more competitive by satisfying stakeholders. The CEO of

In spite of all advantages mention earlier about ethically and socially responsible business practice, it also has disadvantages, limitation and challenges. The most common and obvious limitation would be the cost that comes together with every investment a business does in order to meet all publicity’s requirements, for instance setting up Ronald McDonald House Charities. Every business has a goal which is at the top of their goal list and it is to be profitable. What is more, it is challenging to maintain the publicity’s and stakeholders’ satisfaction when investing into the society, employees and the environment.

The Triple Bottom Line (TBL) accounting concept and framework was first created by John Elkington in the mid 1990’s, and has since changed the way for-profit, non-profit and government agencies measure the sustainability of their initiatives and company. The TBL framework is flexible and can be adopted and molded based on the specific needs of an organization. The framework is comprised of three parts, which are: social (People), environmental (Planet), and financial (Profit), commonly referred to as 3Ps. This framework does spark debate regarding the ethical problems behind measuring, quantifying and accounting for social and environmental variables, which is often not supported by many

According to the textbook, the triple bottom line is known as the people, planet and profit that measures an organization’s social, environmental and financial performance. The Chief Financial Officer at UPS stated that his approach is established in two beliefs “that companies have a responsibility to contribute to society and the environment, and that every investment a company makes should return value to the business.” The company has a responsibility to help the society and concern about the environment with the objective of gaining profit. UPS has established a five-step approach toward sustainability that will balance the needs of various elements. Therefore, one is too assessing your strengths, which will offer to make a major effect

The expectation that businesses behave responsibly and positively contribute to society all while pursuing their economic goals is one that holds firm through all generations. Stakeholders, both market and nonmarket, expect businesses to be socially responsible. Many companies have responded to this by including this growing expectation as part of their overall business operations. There are companies in existence today whose sole purpose is to socially benefit society alongside businesses who simply combine social benefits with their economic goals as their company mission. These changes in societal expectations and thus company purpose we’ve seen in the business community over time often blurs the line of what it means to be socially

A triple bottom line model never merely quantifies an accomplishment or rather the wellbeing of a company through its conventional monetary bottom line. However, triple bottom line similarly measures social, ethical as well as environment performance of the company. Triple bottom line typically is an incessant process that shall assist the company in concentrating into the performance of a more sustainable business whereas demonstrating to local communities together with employees of that particular firm that is not merely looking forward on profit making, but similarly a greater common good for the company operations (Hitchcock and Willard, 2009).

If customers refuse to buy products from organization that do not value the environment, organizations will change to customer’s needs. Along with not buying products, customers should not invest with companies who do not value the environment and communities. “Economists incorporate the triple bottom line into their models of business decision making by assuming that many individuals will buy shares in companies that achieve the triple bottom line outcomes they want and will sell shares in companies that do not” (Douglas, 2012. Pg. 7).

“Businesses are an integral part of the communities in which they operate. Good executives know that their long-term success is based on continued good relations with a wide range of individuals, groups and institutions. Smart firms know that business can’t succeed in societies that are failing—whether this is due to social or environmental challenges, or governance problems. Moreover, the general public has high expectations of the private sector in terms of responsible behavior. Consumers expect goods and services to reflect socially and environmentally responsible business behavior at competitive prices. Shareholders also are searching for enhanced financial performance that integrates social and environmental

A triple bottom line model never merely quantifies an accomplishment or rather the wellbeing of a company through its conventional monetary bottom line. However, triple bottom line similarly measures social, ethical as well as environment performance of the company. Triple bottom line typically is an incessant process that shall assist the company in concentrating into the performance of a more sustainable business whereas demonstrating to local communities together with employees of that particular firm that is not merely looking forward on profit making, but similarly a greater common good for the company operations (Hitchcock and Willard, 2009).

Abstract: In this paper, we examine critically the notion of "Triple Bottom Line" accounting. We begin by asking just what it is that supporters of the Triple Bottom Line idea advocate, and attempt to distil specific, assessable claims from the vague, diverse, and sometimes contradictory uses of the Triple Bottom Line rhetoric. We then use these claims as a basis upon which to argue (a) that what is sound about the idea of a Triple Bottom Line is not novel, and (b) that what is novel about the idea is not sound. We argue on both conceptual and practical grounds that the Triple Bottom Line is an unhelpful addition to current discussions of corporate social

Corporate social responsibility has been one the key business buzz words of the 21st century. Consumers' discontent with the corporation has forced it to try and rectify its negative image by associating its name with good deeds. Social responsibility has become one of the corporation's most pressing issues, each company striving to outdo the next with its philanthropic image. People feel that the corporation has done great harm to both the environment and to society and that with all of its wealth and power, it should be leading the fight to save the Earth, to combat poverty and illness and etc. "Corporations are now expected to deliver the good, not just the goods; to pursue

This work will be based on a theoretical framework of sustainability and specifically that of corporate social responsibility (CSR).The work of Porter and Kramer (2003) indicated that businesses can indeed benefit immensely by engaging in CSR activities. These must be done while at the same time ensuring that the business remains profitable. As Carroll (1983, p. 608), CSR involves the conduct and behavior of a given business in a manner that is law abiding, economically viable, ethical and yet socially supportive. Eco-efficiency should therefore be one of the ways in which businesses can offer goods and services in a way that can improve the quality of life so as to make the clients satisfied (Elkington,1997,p.,78). I will therefore be engaging this topic from the point of view of environmental awareness, eco-efficiency and environmental corporate social responsibility and their impact on the image and profitability of companies.

In the article ‘Why making money is not enough’, Tata et al (2013) argue that maximizing the profit should not be the primary purpose of the businesses. Businesses need to understand sustainable development is more important and should be the primary driver. Authors highlight Tata Group as a good example as Tata primary purpose was to help people and not make money. Authors highlight what has changed in 20 years – after people realized fundamental changes will need to be made for a sustainable development. Today, some companies are investing into clean technology but we still haven’t done enough to reduce world population. Authors argue a critical need for economic, social and environmental issues to be considered with new business strategies and future technologies.