The idea is to create a discussion-like atmosphere among students. Please note that replies such as I like what you said, Thats a good comment, and I disagree with your comment do not count as a complete reply. You must substantiate these general statements by stating specific reasons that support your opinions, adding additional, relevant thoughts, and/or providing alternative ideas. Replies to your peers should also use credible, external sources. Each reply must use APA formatted in text citation and must have APA style references at the end of the post. Courtesy in any disagreement is expected; thus, personal attacks are not acceptable and will affect your grade. References are required in the responses to the peers posts.
Post 1
The main goal of all the businesses and the firms is to make a profit in the end. But I think it is not fair to achieve this goal by impacting or by being disrespectful to our society and environment. For these reasons as we can see most of the firms are using an approach know that is known as the triple bottom line. This is an interesting and necessary concept for the current generation. In simple words, this concept focuses on our people and the along and just that the profit. One of the very well known companies that are making use of this concept is general electric. GE has always been concerned about how their businesses affect the people, the employees, the shareholders, and the citizens of the community. By tracking the environmental impact the company is making sure to increase the shareholder value.
This approach is known to us for almost 25 years now, and only a few organizations are firms have adopted this concept. One of the best examples of the company that was most benefited by this approach was the IKEA. It was in the year 2016 when the company had sold products worth $37 billion, there has also saved around $million just by recycling the waste into the most valuable goods or products. Also one of the interesting fact here is that most of their goods or products are, made from renewables materials.
However, this approach has always been focusing on creating stakeholder value rather than shareholder value.
By subscribing to the standards of this methodology it seems as though organizations are making a more concrete, obvious obligation to CSR and supportability. And no uncertainty many are. Yet, it additionally permits them to make basically no responsibility at all (Kingsley, 2013). With no genuine social or environmental bottom lines to need to ascertain, firms don’t need to stress over having these “bottom lines” contrasted with different firms inside or outside of their area; nor is there liable to be incredible stress over the firm having declining social and environmental “bottom lines” By receiving TBL reporting, businesses understand that they are held to explicit rules that are created by inner and outer powers. Consequently, they should zero in on the effect that their operations have on the local area. This difference in mentality will, normally, be trailed by changes in standard, ordinary operations to build straightforwardness. Today, responsibility in the corporate world is a need (Philip, 2020). This expects organizations to expand their data past financial information; TBL associates the financial reporting with the business’ regular exercises in a manner that gives a more extensive consciousness of the effect of the business upon society. Data ought to be continually and precisely recorded to affirm the benefits of finding a way to turn into a sustainable company
Post 2
Triple bottom line is an important tool to support sustainability in a business while maximizing its profits. This framework is being widely enforced to evaluate the performance in three dimension which are social, environmental, and financial. These dimensions are commonly known as three Ps, people, planet, and profit. There are sometimes trials and tribulations that one must go through, but if one does not take a big leap in the choices that are made, and then the rewards can also be non-existent. Focusing just on profit cannot be considered as full cost of doing business. The firm must be socially responsible in its services and measure its sustainability to the environmental aspects. Applying this method could be challenging due to the existing difficulties in measuring 3 Ps. It might be a struggle to maintain balance between them. Not employing this method could bring greater damage to the universe such as deforestation, global warming, and labor exploitation.
With innovating quicker and new ways of finding out answers to questions can be helpful in growing and provide a stronger economy. According to (Weidner, 2020), sustainable innovation contributes to the triple bottom-line by enhancing firms environmental performance and social performance, and in turn economic performance. The main approach of the model is to focus on the benefiting of stakeholder rather than shareholders. Focusing on customer needs, developing products that are environmentally sustainable while making profits is the idea of triple-bottom-line. When a firm focuses on creating shareholder value the strategies developed will lead to incorrect cash flow estimates. This cannot be used to define competitive advantage of the firm as performance prediction is difficult considering the volatile nature of the stock prices in short run. The best example of this is the global recession of 2007-09. Financial institutions gave mortgages to every applicant in hope of making larger profits. Few businesses took part in unethical activities such as falsifying personal information to gain shareholder value. Excessive focus on shareholder value is the cause of 2007 Great Recession.
BP shares fell after Deepwater horizon oil spill. Rushing of the work to save time and money is the reason for the rig explosion. BP for 10 years after the spill and still could recover its share value (Little, 2020). BP collaborated with Halliburton and Transocean with a purpose of gaining profits. Omissions and acts by Transocean and Halliburtons poor cement stability cause the accident. Focusing on profits without considering environment and social impacts caused this disaster which the pacific is still trying to recover from. Employing TBL will enforce deeper thinking and understand the need for balancing act. Employing it early in the business will benefit firms and motivate them to develop new methods and tools to reach higher goals.
