The Triple Bottom Line Performance Evaluation Of A Firm

1990 Words8 Pages
INTRODUCTION
In the last decades, the triple-bottom line performance evaluation of a firm, a concept that reflects the growing tendency of stakeholders to evaluate organizational performance on the basis of economic prosperity (i.e., profits), environmental quality (i.e., the planet), and social justice (i.e., people) has emerged (Elkington 1997). Interestingly, a unique observation has begun to take hold. Specifically, many observers contend that while organizations play a major role in causing ecological problems, they could also obtain various benefits from practices that have a positive impact on the environment (Henri and Journeault, 2006). In association, managers, shareholders, academics and other stakeholders have begun to think
…show more content…
It not only requires investments in green product and manufacturing technologies, employee skills, organizational competencies, formal management systems and procedures, but also in the reconfiguration of the strategic planning process. To date, existing approaches are still so fragmented and disconnected from business strategy in such a way as to obscure many of the greatest opportunities for companies to benefit society via such an approach (Porter and Kramer, 2006). Yet, it has been suggested that if corporations would analyze their prospects for environmental responsibility using the same frameworks that guide their core business choices, they would discover that environmental management can be much more than a cost or a constraint; it could, in essence, be a source of opportunity, innovation, and competitive advantage (Porter and Kramer, 2006).
From such a perspective, one can view environmental responsibility as not merely a cost, but also an investment for an organization. Inimitable intangible resources, such as a firm’s human resources and its capability to endorse innovation and creativity can be key drivers of a firm’s competitive advantage and can be used to reach environmental goals. For example, Alfred Marshall, a classic economist, states that the most valuable capital of all is that invested in human beings (Marshall, 2011 ed., p. 324). If this is the case, then effective and
Get Access