The Triple Bottom Line - Assignment Example

THE TRIPLE BOTTOM LINE Lecturer: THE TRIPLE BOTTOM LINE The core essence of the triple bottom line (TBL) is to measure an organization’s overall performance by incorporating financial health, environmental sustainability, and furtherance of social justice (Shrivastava & Berger, 2010). From this definition alone, it is possible to notice that any organization that implements TBL would be one that focuses on overall growth rather than looking only at financial profitability. This was the exact way in which the implementation of TBL in my previous organization would have affected performance.

This is because currently, all the focus of the organization w, which is a financial service provider, is on financial growth. This is however having a negative effect on performance at the corporate level because the company does very little to focus on environmental sustainability and social justice. This makes it difficult to have stakeholder goodwill because corporate ratings of the company are very low.The use of the TBL measurement system would also come with some short term consequences for the organization.

The first of such short term consequences have to do with increase in the company’s budgetary expenditure. This is because to get the full potential of TBL measurement system, it is important to institutionalize it in the company and ensure that every needed resource that makes its implementation successful is apportioned (Slaper & Hall, 2011). Such rise in expenditure may come as a result of the need to set up a new TBL monitoring team or department. Another short term consequence would be possible organizational friction that would come as a result of changes in the organizational culture of the company.

Such changes in organizational culture would have to come to ensure that aspects of environmental sustainability and social justice are incorporated into the activities of the company (Shrivastava & Berger, 2010). There are also long term consequences of using TBL measurement system. These long term consequences would however be seen as yields from the short term consequences. The first of such long term consequences would be improved corporate returns for the company. These corporate returns can be measured not only in terms of financial growth but also in terms of sustainability and social justice.

Indeed companies that have such hopes for sustainability and social justice are always guaranteed to have lesser legal issues with its in-house and external stakeholders such as employees and suppliers. This is because by the use of the TBL measurement system, the company would always be directed on ways in which it can improve on all these areas of corporate management. The other long term consequence is positive corporate image, which will come about as the company endorses in corporate social responsibility, making the public and all stakeholders see the company as exhibiting corporate citizenship.

From the long term consequences given, it can be noted that there is a direct relationship between corporate profits and social responsibility. This is because as social responsibility brings improved corporate image, the company will appear well branded to the public, making it a preferred destination to do business. As such businesses are performed due to improved corporate ratings of the company it will directly affect profitability of the company. But as an executive, it is important to put in plans that seek to promote social change in the organization.

One way I plan to make use of skills learned in the course to promote social change is to set social responsibility teams within the organization to come up with innovative ways in which the company can effectively engage in corporate social responsibility.ReferencesShrivastava, P., & Berger, S. (2010). Sustainability principles: A review and directions. Organization Management Journal, 7(4), 246–261.Slaper, T. F., & Hall, T. J. (2011). The triple bottom line: What is it and how does it work?

Indiana Business Review, 86(1), 4–8.