The Triple Bottom Line: Social And Economic Model

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 stakeholder theory made popular by Ed Freeman (1984) does seem to represent a major advance over the classical view (Freeman, 1984). It might seem inappropriate to refer to the stakeholder position as neoclassical. Bowie (1991: 56-66) has defined stakeholders as a group whose existence was necessary for the survival of the firm--stockholders, employees, customers, suppliers, the local community, and managers themselves.

The purpose of this paper is to recognize the definition and what a stakeholder is and what it does. I will also explain the two groups of the stakeholders and put the stakeholders in the group where they belong. I will explain what the stakeholders responsibilities are, what their ethical responsibilities to the company. Will explain what would be the appropriate response to the situation in the company. And finally explain what Joe should propose to the management team and how Joe should support his proposal.

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).

The triple bottom line or TBL is an accounting framework that was created by John Elkington for measuring the company’s sustainability in the mid-1900s (Slaper & Hall, n.d). The triple bottom line incorporates the three dimensions of company which are people, planet, and profit or they were called 3P (Investopedia, 2015). First, people is about measuring the company’s degree of social responsibility, the second is planet, which measures the company’s environmental responsibility, and the last one is profit that measures company’s economic value (The Economist, 2009).

A stakeholder is anyone with an interest in a business and could be an individual or an organization. The actions of stakeholder can affect a business at the same time; stakeholders can be affected by certain business activities or business changes. The business in focus is Primark and will be evaluating the implications of its recent ethical issues and how it affects both the business and its stakeholders. The stakeholders for Primark are

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).

Unfortunately, anyone looking into this large and evolving literature with a critical eye will observe that the concepts stakeholder, stakeholder model, stakeholder management, and stakeholder theory are explained and used by various authors in very different ways and supported (or critiqued) with diverse and often contradictory evidence and arguments. Moreover, this diversity and its implications are rarely discussed-and possibly not even recognized. (The blurred character of the stakeholder concept is also emphasized by Brummer, 1991.) The purpose of this article is to point out some of the more important distinctions, problems, and implications associated with the stakeholder concept, as well as to clarify and justify its essential content and significance. In the following section we contrast the stakeholder model of the corporation with the conventional input-output model of the firm and summarize our central thesis. We next present the three aspects of stakeholder theory -descriptive/empirical, instrumental, and normative found in the literature and clarify the critical differences among them. We then raise the issue of justification: Why would anyone accept the stakeholder theory over alternative conceptions of the corporation? In subsequent sections, we present and evaluate the underlying evidence and arguments justifying the theory from the perspective of descriptive, instrumental, and normative justifications. We conclude that the three approaches

The word “stakeholder” has been frequently used to refer to a person or organization which has close financial relationship with company or enterprise, since 1990s. Stakeholder could include its owners, staff, shareholders who are internal stakeholder, and external stakeholder, for example, community, the government, and competitors. In this essay, “stakeholder” will include not everyone to whom it may have a payoff (Bourne, 2007).

Identify the key stakeholders impacted by the CSR policies. A stakeholder is a party that has an interest in a company, and can either affect or be affected by the business. The primary stakeholders in a typical corporation are its investors, employees and customers (Staff, 2015). Volkswagen expected guilty plea and arrest of an executive on conspiracy charges and another lawsuits brought by company shareholders (Tabuchi,

Stakeholder salience is a descriptive theory which is used to qualify the types of stakeholders, mapping who matters and is influential for the company. The authors of this paper firstly believe that portfolio companies employees aren't valued enough by the Private Equity firms. In order to investigate this statement, the stakeholder salience theory was chosen in order to analyze whether the implementation of the better CSR initiatives reporting could enhance their salience.

Moving on, the author will define a stakeholder and list their types. Furthermore, the responsibilities of an organisation towards its stakeholders will be highlighted in a table. In addition, the importance of performing CSR will be analysed along with the advantages and examples of CSR practices at Elephant House. Finally, the author will provide the challenges in practicing CSR.

Despite the conflicting nature between the social-capital theory (SCT) and stakeholder theory (ST), the role of ‘Corporate social responsibility’ (CSR) is a factor for a majority of organisations to gain an economic advantage amongst its competitors. Through globalisation, aspects involving profit maximisation and business reputation have become the primary influences of the ST. Alternatively, the minority of organisations engaging in CSR with the altruistic concern for the stability of the wider community and society, reflects the moral influences of values and stakeholder obligations. In summation, the internal objective of financial performance is dependent on the process that arises from CSR application to the inevitable outcome of profit maximisation within an organisation, thus re-enforcing the debate that is against altruistic form.

Therefore, corporate’ activities have strong influences to the stakeholders. Hildebrand,D,et,al (2011) argued that under a specific but identifiable situation, a company’s CSR actions are able to satisfy stakeholders’ higher-order and self-related demand, meanwhile enabling the stakeholders to identify with the company. On the other hand, Piercy, N. and Lane, N.(2009) indicated that CSR seems to be the most efficient way for the corporate marketing efforts of most firms. It may enable the stakeholders to be loyal even life-long customers of the companies.

Stakeholder is defined as “any group or individual who can affect or is affected by the achievement of the organization’s objectives” (Freeman 1984). Stakeholder theory, when introduced in the 1980s, signify a major change in how relationships within a business might coexist and benefit one another. The concept of “Stakeholder theory” or “stakeholder thinking” is about identifying groups who are stakeholder in a corporation and manage them. It states that organizations are collections of several different parties, each with its own goals and objectives. Stakeholder concept has been used, either explicitly or implicitly, for descriptive purposes, and also as a framework from which different theories and ideas can be derived. It offers an proper lens for consideration of more composite perspective of the value that stakeholders seek as well as new ways to measure it. Stakeholder thinking has emerged to understand the three interrelated business problems indicating the problem of how value is created and traded, problem of connecting ethics and capitalism, and the problem of helping managers think about management. Stakeholder theory can be upstretched with a full different collection of ethical questions without any context to other theories.