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3.2: Triple bottom line KEY IDEA
Triple Bottom Line (TBL) stands for:ProfitEnvironmentalSocialTBL basically refers to the need for businesses and firms to pay more attention tosocial, environmental impacts as well as financial (profits)Failure to do so = cannot compete in a globalized worldINSIGHTSTBL is important because in today's world, consumers command more authority than ever before in mankind, so if consumers actually give a shit about saving treesthen as a firm/business you need to change your operations so that they are more "environmental'-> Consumers hold the authority; firms need to 'fit' into consumer demandsTBL: THOROUGH DETAILFINANCIALFirms need to make money, indicators of success are profit/loss statements, ROI SOCIALEmbraces social responsibility as a core value Indicators of social success:Human rights recordSafety in operations & products that are sold (i.e. mercury free toys)Volunteering and donating to charitiesENVIRONMENTALGrowing consumer trend towards 'eco-friendly' means firms need to reduce carbon footprint-> going 'green' makes the firm look better in the eyes of the publicIndicators of environmental success:Pollution reportsEnergy consumption'green' certification (i.e. LEEDS)EXAMPLE: Tim Horton'sThough they are a coffee shop they run a program each summer, SEND A KID TO CAMP, where they donate a lot of $$$ to camps so children can go and playthis is Timmies way of saying we socially responsible
Readings:3.3: The Balanced ScorecardKEY IDEAA strategic planning and management system developed by KAPLAN & NORTON