Benefits to the Triple Bottom Line

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• Benefits to the Triple Bottom Line
• Shauna Sylvester

September 2005
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The Triple Bottom Line

• The phrase was coined in the mid- 1990s by a
  management consulting firm called AccountAbility
  and later popularized by John Elkington, in his
  1997 book entitled Cannibals with Forks The
  Triple Bottom Line of 21st Century Business.

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Definition of Triple Bottom Line

• captures the spectrum of values that
  organizations should embrace - economic,
  environmental and social.
• Expands the traditional company reporting
  framework to take into account not just financial
  outcomes but also environmental and social
  performance.

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What are the Benefits of Incorporating a Triple
Bottom Line Perspective into the way your
business or organization operates?
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List of Benefits

• Mission Alignment
• Operating efficiencies (e.g. aggregates reporting
  functions)
• Decrease in some costs (e.g. hydro, electricity,
  paper)

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List of Benefits

• Recognition as a good corporate citizen
• Enhanced brand or public reputation
• Increased sales and customer loyalty
• Increased ability to attract and retain employees

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What do the critics of a Triple Bottom Line
approach say?
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Critics say

• The the ideas behind social and environmental
  reporting are too vague
• Companies responsibilities are maximizing
  shareholder value
• A triple bottom line approach is not novel
  companies have been doing it for years
• No-one has defined what a social bottom line is
• For further information see
• Wayne Norman, Chris MacDonald Getting to the
  Bottom of the Triple Bottom Line in Press
  Business Ethics Quarterly, March 2003

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Tools for Incorporating a Triple Bottom Line
Approach

• Mission
• Statement of values
• Leadership
• Employment Programs

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Tools

• Policies and Procedures
• Ethical screens
• Environmental policies and management systems
• Procurement Policies
• Personnel Policies
• Fundraising Policies

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Tools

• Investments
• Corporate giving
• Development of innovative
• products
• Social and Environmental Auditing

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What three things can you do to bring a Triple
Bottom Line approach to your business or
non-profit organization?
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• Benefits to the Triple Bottom Lines
• Shauna Sylvester

September 2005