Literature Review on Triple Bottom Line.

The triple bottom line is made up of "social equity, economic, and environmental" factors. "People, planet and profit" succinctly describes the triple bottom lines and the goal of sustainability. The phrase, "people, planet, profit", was coined by John Elkington in 199 while at !ustainability, and was later adopted as the title of the "nglo#$utch oil company !hell%s first sustainability report in 199&. "s a result, one country in which the 'P concept took deep root was The (etherlands. "People" pertains to fair and beneficial business practices toward labor and the community and region in which a corporation conducts its business. " T)* company concei+es a reciprocal social in which the well#being of corporate, labor and other stakeholder interests are interdependent. " triple bottom line enterprise seeks to benefit many constituencies, not e,ploit or endanger any group of them. The "up streaming" of a portion of profit from the marketing of finished goods back to the original producer of raw materials, for e,ample, a farmer in fair trade agricultural practice, is a common feature. -n concrete terms, a T)* business would not use child labour and monitor all contracted companies for child labor e,ploitation, would pay fair salaries to its workers, would maintain a safe work en+ironment and tolerable working hours, and would not otherwise e,ploit a community or its labor force. " T)* business also typically seeks to "gi+e back" by contributing to the strength and growth of its community with such things as health care and education. .uantifying this bottom line is relati+ely new, problematic and often sub/ecti+e. The 0lobal 1eporting -nitiati+e 201-3 has de+eloped guidelines to enable corporations and (04s alike to comparably report on the social impact of a business. "Planet" 2natural capital3 refers to sustainable en+ironmental practices. " T)* company endea+ors to benefit the natural order as much as possible or at the least do no harm and minimi5e en+ironmental impact. " T)* endea+or reduces its ecological footprint by, among other things, carefully managing its consumption of energy and non#renewable and reducing manufacturing waste as well as rendering waste less to,ic before disposing of it in a safe and legal manner. "6radle to gra+e" is uppermost in the thoughts of T)* manufacturing businesses, which typically conduct a life cycle assessment of products to determine what the true en+ironmental cost is from the growth and har+esting of raw materials to manufacture to distribution to e+entual disposal by the end user. " triple bottom line company does not produce harmful or destructi+e products such as weapons, to,ic chemicals or batteries containing dangerous hea+y metals, for e,ample. 6urrently, the cost of disposing of non#degradable or to,ic products is borne financially by go+ernments and en+ironmentally by the residents near the disposal site and elsewhere. -n T)* thinking, an enterprise which produces and markets a product which will create a waste problem should not be gi+en a free ride by society. -t would be more e7uitable for the business which manufactures and sells a problematic product to bear part of the cost of its ultimate disposal. "Profit" is the economic value created by the organization after deducting the cost of all inputs, including the cost of the capital tied up. It therefore differs from traditional

accounting definitions of profit. In the original concept, within a sustainability framework, the "profit" aspect needs to be seen as the real economic benefit enjoyed by the host society. It is the real economic impact the organization has on its economic environment. This is often confused to be limited to the internal profit made by a company or organization (which nevertheless remains an essential starting point for the computation . Therefore, an original T!" approach cannot be interpreted as simply traditional corporate accounting profit plus social and environmental impacts unless the "profits" of other entities are included as a social benefit.

8ig 9 Triple )ottom *ine

1eferences 9 13 http9::griid.org:;<1<:<':'<:the#triple#bottom#line#and#sustainability:

Pramod !hah =)" ;nd !em