Triple Bottom Line Approach - Essay Example

? The implications of the use of the Triple Bottom Line approach in the events industry: A case study of Pamplola Bull-running Fiesta Contents The implications of the use of the Triple Bottom Line approach in the events industry: A case study of Pamplola Bull-running Fiesta 1 1 Contents 2 Introduction 3 The Event 4 Stakeholders 6 Impact of event 7 Link between stakeholders and impacts 9 Conclusion 10 Reference 12 Introduction The 21st century challenges the businesses to fundamentally change the way the businesses operates. With upcoming issues such as depletion of the natural resources, climate changes and also energy crises have hit the organisation and have demanded that attention should be paid to various aspect of a business which includes beyond the financial result. A firm must pay particular attention to social, environmental and also economic effects of the operation which is referred to as corporate social responsibility or sustainability. Sustainability is a concept which aims to address all the required aspect of an organisation which takes into consideration the research and development of a new product that do not use non renewable resources; creativity and innovation, organisation tries to figure out the ways of minimizing waste; marketing the concept of sustainability as well as advertising in support of some local issues or social cause. Thus sustainability has become a fundamental market force which is ignited through shareholders, customers and stakeholders. A framework which helps operate the sustainability is the Triple Bottom Line Approach (TBL). The Triple Bottom Line just do not focuses on the economic value of an organisation but also on the environmental as well as social value the add to an organisation and also destroys it. The TBL represents the economy, society and the environment. The three systems are interrelated with each other; society depends on the economy and economy on the ecosystem, which represents the bottom line (Quinn & Baltes, 2007, p.4). The objective of the essay is to see how the Triple Bottom Line Approach has its implication in the event industry. To analyse the TPL an event of the Spanish has been chosen which talks about the Pamplola Bull running Fiesta. The essay begins with an introduction of the event, its historical background, current status and classification of the event. Next it deals with the stakeholders of the event both at the individual as well as at the organisational level. The next part of the essay discusses about the impacts that the event would have on the environmental, economic and social culture in negative and positive way. The link between the stakeholders and the impact is analysed and finally a conclusion is driven. The Event The event to be discussed in the essay is the Pamplolona Bull-running Fiesta. The fiestas of San Fermin are usually celebrated in Pamplola in the region of Navarra each year from 6 of July to 14 of July. This fiesta is internationally recognised because of running of the bulls. This event is termed as Encierro which takes place at the heart of San Fermines and makes the event spectacle (Spain travel, 2012). Although the history of bull running in Pamplola is not clear but the festival has started way back in the 13 century when the event took place in the month of October. The modern celebration has said to be evolved from the 13 century. In the past the religious festival of San Fermin was celebrated with music, dancing, markets and bullfighting in 10 of October. But the Pamplola Council had proposed to shift the festival from October to July as the weather was much more conducive and supported the celebration. Thus till date the date of the celebration remained fixed where the first bull run starts on 7th of July at about 8am and the last on July 14 also at 8am. The joining of commercial, religious and bull fighting festivals and the new time and date of operation was first official celebrated in 1591 in San Fermines. In 1591 the celebration was not much popular as it is today. In the 17th and 18th centuries, the first foreigners turned up for the festival in Pamplola. This was the time when the festivals focus on the religious ground took a back seat and concentrate mainly on dancing, music, drinking, bull running and street theatre. By the 19th century different kinds of attraction had made their way to the Pamplola festivals. The drawback of bull fighting in the 19th century created chaos in the streets as the route of the Bull Run did not have double security walls which lead the bull to escape. The event takes place at 8am from 7th to 14 of July. The runners willing to participate in the bull running should be present in the running area by 7:30am. The Bull Run starts from Santo Domingo where the bulls are placed to the bull ring. The length of the run accounts for 825meters and the estimated time is three minutes. About six fighting bulls run the projected route. At the release of the bull a rocket is fired which indicated that the gates of the bull have been opened. The runners are dressed in white with a red handkerchief prays to San Fermin. The second rocket indicates that the bull has been finally let off and then the bull and the runner proceed to the targeted routes (Alhambra Instituto, 2008). The event that takes place in San Fermin is classified under different events that take place in Spain. It is the most famous festival in the world. The Txupinazo, Rocket marks the beginning of the event which takes place on 6 July every year at midday. Many thousands of people surround the Plaza del Ayuntamiento where a rocket is lighted to start off the celebration. Next is the Encierro-bull run which is regarded as the most famous part of the events. The event starts at 8am every morning from the prescribed dates, the bulls are made to run in the ring where the bull fight would take place and along with the bulls, young people also runs with the bulls. The Corrida, bullfight is even more famous part of the event than Encierro. This event is held in the afternoon in between 7 July to 14 July at around 6:30pm. The procession usually takes place at 10am on 7th of July. This event is termed as religious event which involves the statute of the state and other famous personality which is mostly photogenic and lively. Apart from these events there are other forms of events which take place in San Fermin such as display of firework, concert, drum bagging (Ross, n.d). Stakeholders Stakeholders vary from events to events. In order to satisfy the potential goal and to involve the stakeholders, festivals are unique in case of event sector. Sometimes stakeholders are regarded as secondary topic while planning about the strategic forces that might affect the function of the festivals (Getz, 2010, p.15). Stakeholders may included the event organisers, volunteers and the employees, emergency services, security services, local council, media, transport services etc (Safe Work SA, 2010). In case of Pamplola Fiesta, the stakeholders would comprise of event organisers, the local people, and the tourist who especially come to Spain to attend the festival. Apart from the above stakeholders, the security services of the event, the volunteers would also form a part of the stakeholders for the event. External stakeholders would be the tourist in this case who are influenced by the festival and comes during that period only to attend the festival of bull fighting; media who plays an important role in generating awareness and also the government. In case of internal stakeholders, the event would comprise of the owner of the event, the employees and also the suppliers. Impact of event Any event which takes place has an adverse impact not only in the country’s economy but also environmental and social culture. The events have a both positive as well as negative impact in the society. Bull fighting has an impact in various different fields such as the economy, journalism, society, environment, agriculture and few others which are major significance. It is not possible to protest against bull fighting without having clear information about the background. Bull fights are governed by the Spain law and also covered under the Treaty of Amsterdam which aims to provide regards to the animal welfare but also provides respect for cultural traditions. In contrast to its support, there are anti bull fighting campaigns but an organisation or individual must take into account all the aspect of the situation before getting associated with anti bull fighting campaigns, which is deeply rooted in the culture of the Spaniards (Council of Europe Publishing, Council of Europe, 2006, p.217). Environmental impacts: An event has an impact over the environment both during pre and post events. The event has a positive as well as negative impact on the environment. The bull fighting event in Spain is recognised as one of the famous festivals in the world but it does effect the environment. Spain is a country which is not noted for its kindness towards animals. Fiestas include piercing of bulls, the bullfight which is the most famous fiestas in Spain (Stone, 2011, p. 240). The positive impact of bull fighting would comprise of factors such as showcasing the environment; like portraying the country’s environment to bee green and follow the sustainability with regards to environment. There are usually many visitors who come to attend the festival thus showcasing the environment would lead the country to have a positive impact in the country’s economy as well as in the socio cultural aspect. The event would create environmental awareness; much effort must be put up in transportation as well as communication sector. Most of the visitors in Spain tend to learn Spanish before they land in the country for such festivals. Thus the festival has a positive impact with regards to the environment. The negative impact affecting the environment is factors like damaging the environment, creating pollution of land, water and air, noise pollution and traffic congestion (Bowdin, 2002). The event of bull fighting also creates destruction of environment, land and air pollution, it causes noise pollution as thousands of bulls run across the route. Social Impacts: As an event tend to have an effect over the environment it also has an equally effect in the society. The event can create both positive as well as negative impact in the society. The positive aspect of bull fighting festival that takes place in Spain could be a pride for the community. This is true in case of the festivals as many thousands of people know about the festival and is recognised as one of the famous festival in the world. This enhances pride for the Spain community. The festival tends to expand the cultural perspective as bull fighting is amongst the culture of the population of Spain and it has been recognised worldwide. it provides opportunity for employment and training, improvement in facilities as its one of the biggest festivals conducted in Spain thus the organiser have to concentrate more on the facilities provided during the event. A major positive aspect of the festival is tourist attraction. Each year the country draws million of tourists across the world (Presse, 2011). It is estimated that the festival earn revenue of about 300million Euros per year (Stone, 2011, p. 240). Negative impact of the festival includes pollution, anti social behaviour such as drinking and creating nuisance in the town, hampering the normal life of the city such as traffic; since bull fighting has always been marked as risky affair, as a result many of the people who participates often gets hurt and also sometimes loses their lives. Economic Impacts: The impact of a major event is looked in terms of cost benefit analysis or through economic multiplier analysis. An event may not provide direct employment but the indirect effect could be significant. The bull fighting fiesta in Spain tends to earn revenue of 300 million Euros per year from its tourists. The indirect effect may include retailing and also catering such as coffee shops, restaurants, pubs; transport services and other types of suppliers (Shone & Parry, 2004, p.55). Positive impact of event over the country may include tangible benefits as well as intangible benefits. Tangible benefits includes expenditure made by the visitor which is seen as new money, revenue on tax, funds and grants, sponsorship fees and also generates employment. And intangible economic benefits of events may include community development, psychic income with community cohesion, promotion and media helps in image building for the country and with an improvement in infrastructure, the value of property tends to increase. Link between stakeholders and impacts There is a link between the stakeholders and the impacts that takes place due to the events. The stakeholders are group or individuals who affect or are affected by the achievement of a corporation (Freeman, 1984). The stakeholders of bull fighting fiesta comprises of the event organisers, the local people, and the tourist who especially come to Spain to attend the festival. Apart from the above stakeholders, the security services of the event, the volunteers would also form a part of the stakeholders for the event. Media also plays a vital role in the generating awareness about festivals or events. Thus media would also form a part of the event stakeholders. The impacts of the event have an adverse effect on the environment, socio culture and economic factors. Each and every stakeholder would be affected by the impacts. Environmental impact would affect the environment, society, and the people as a whole every stakeholder. Similar is the case for economic and social impact. In economic impact, the stakeholders such as the government would be affected as the country’s growth would be hampered and in return would affect the country’s economy. In social impact, the people, tourists would be affected. When an event generates negative reviews there is a likeliness of a fall in the tourist sector which in turn damages the country source of revenue. Therefore it can be assumed that there is a link between stakeholders and the impacts. Sustainability is the development which aims to meet the needs of the present without comprising the needs of the future generation in order to meet its own needs. There are three important aspect of sustainable development. They are economic, environmental and social. The three elements of sustainable development have introduced potential complications to the simple and original definition of economic development. Thus economic sustainability mainly requires various kinds of capital which are necessary for economic production, the conversation of the natural resources and ecosystem is important for sustainable production of economy. Social equity which consists of health, educational needs and democracy are also interrelated with sustainability of environment. Thus the three elements are essential in understanding the requirements of sustainability (Harris, 2003, p.2). Conclusion The TBL approach which was developed by John Elkington has relatively changed the way non profits, businesses and government’s measures sustainability. Sustainability measures basically three aspects, people, profit and planet, but also the TBL flexibility allow organisation to apply it whenever required. Thus TBL has been a significant approach in measuring the impact not only economic but also social and environmental. TBL is also based on the awareness that an event does comprises of many stakeholders. Thus the main motive of the Triple Bottom Line Approach is to create a balance between the people, economy and the planet without affecting each other. Reference Alhambra Instituto. (2008). Pamplola Bull Run (San Fermin). [Online]. Available at: http://alhambrainstituto.org/fiestas-san-fermin.htm. [Accessed on January 16, 2012]. Bowdin, G. (2002). Events Management, 2nd edition. Butterworth-Heinemann. Council of Europe Publishing & Council of Europe. (2006). Animal welfare. Council of Europe. Freeman, R. E. (2010). Strategic Management: A Stakeholder Approach. Cambridge University Press. Getz, D. (2010). THE NATURE AND SCOPE OF FESTIVAL STUDIES. [Pdf]. Available at: http://www.ijemr.org/docs/Vol5-1/Getz.pdf. [Accessed on January 16, 2012]. Harris, J. M. (2003). Sustainability and Sustainable Development. [Pdf]. Available at: http://www.ecoeco.org/pdf/susdev.pdf. [Accessed on January 17, 2012]. Presse, A. F. (2011). Huge crowds launch Spain’s Pamplona bull-run fiesta. [Online]. Available at: http://www.rawstory.com/rs/2011/07/06/huge-crowds-launch-spains-pamplona-bull-run-fiesta/. [Accessed on January 16, 2012]. Quinn, L. & Baltes, J. (2007). Leadership and the Triple Bottom Line. [Pdf]. Available at: http://www.ccl.org/leadership/pdf/research/tripleBottomLine.pdf. [Accessed on January 16, 2012]. Ross, J. (No Date). Sizzling Sanfermines. [Online]. Available at: http://spainforvisitors.com/sections/sanfermin.htm. [Accessed on January 16, 2012]. Safe Work SA. (2010). EVENT SAFETY MANAGEMENT. [Pdf]. Available at: http://www.safework.sa.gov.au/uploaded_files/eventsafety_management.pdf. [Accessed on January 16, 2012]. Shone, A. & Parry, B. (2004). Successful event management: a practical handbook. Cengage Learning EMEA. Spain Travel. (2012). SPAIN FIESTAS. [Online]. Available at: http://www.justspain.org/spain/spain-fiestas.asp. [Accessed on January 16, 2012]. Stone, P. (2011). Frommer's Barcelona. John Wiley & Sons. Read More