Triple Bottom Line

Chapter 3-Mini Presentation

The Triple Bottom Line
• The triple bottom line —representing People, Planet, and Profit (the 3
Ps)—measures an organization’s social, environmental, and financial
performance.
• Success in these areas can be measured through a social audit, a
systematic assessment of a company’s performance in implementing
socially responsible programs, often based on predefined goals.
To Whom Should a Company Be
Responsible?

• https://www.youtube.com/watch?v=LdAJn0hGCGs
• https://www.youtube.com/watch?v=7B1TVNt36bw

• In September 2010, a buried Pacific Gas & Electric natural-gas pipeline in the
San Francisco–area suburb of San Bruno blew up in a spectacular pillar of fire,
killing eight people and destroying 38 homes. “The gas-fed flames burned for
more than 90 minutes while PG&E scrambled to find a way to shut off the
line,” reported the San Francisco Chronicle.15 How did this come about?
Internal Stakeholders
• Stakeholders —the people whose interests are affected by an
organization’s activities.
• internal stakeholders consist of employees, owners, and the board of
directors, if any
• owners of an organization consist of all those who can claim it as their legal
property
• Board of directors: members are elected by the stockholders to see that the
company is being run according to their interests. They hire CEOs in many cases.
• In nonprofit organizations, such as universities or hospitals, the board may be called the
board of trustees or board of regents. Board members are very important in setting the
organization’s overall strategic goals and in approving the major decisions and salaries of
top management.
External Stakeholders
• external stakeholders — people or groups in the organization’s external
environment that are affected by it.
• This environment consists of the task environment and the general environment
• task environment consists of 11 groups that present you with daily tasks to
handle: customers, competitors, suppliers, distributors, strategic allies,
employee organizations, local communities, financial institutions, government
regulators, special-interest groups, and mass media.
• Customers are those who pay to use an organization’s goods or services.
• competitors—people or organizations that compete for customers or resources
• A supplier is a person or an organization that provides supplies—that is, raw
materials, services, equipment, labor, or energy—to other organizations
 External Stakeholders Continued
• A distributor is a person or an organization that helps another organization sell its
goods and services to customers.
• strategic allies describes the relationship of two organizations who join forces to
achieve advantages neither can perform as well alone.
• clawbacks—rescinding the tax breaks when firms don’t deliver promises—local
communities sometimes do this
• crowdfunding, or crowdsourcing is raising money for a project or venture by
obtaining many small amounts of money from many people (“the crowd”),
• government regulators— regulatory agencies that establish ground rules under
which organizations may operate
• Special-interest groups are groups whose members try to influence specific issues