Future Projections for the Idea of the Triple Bottom Line - Essay Example

Introduction The focus this week is the organization being a metaphor for individual peoples in society and the contribution they make, their impactand the way in which they positively influence future activities. The way in which an organization engages with the society in which it finds itself is linked to the value of acting as a decent citizen and making a positive contribution to the general good of society The eagerness with which an organization tries to attain its goals with regard to society is considered, as is its readiness to work interactivity in order to achieve the same progressive outcomes. John Elkington (1995) coined the phrase, "people, planet, profit". This was while he was at SustainAbility. This is an organization which was created in order to deliver guidelines which are socially responsible. This were supplied to large corporations who considered profits to be more important than any possible benefits for wider society. An enterprise which is described as having a triple bottom line is one which aims to benefit a variety of constituencies, without exploiting or endangering any one group. In 2004 Elkington described wha the named as the "upstreaming" of a percentage of any profit created by selling finished goods to those who originally produced the raw materials used.( This triple bottom line consists of several factors including concerns which are to do with the environment , society and the economy. The phrase "People, planet and profit" describes the ways in which an organization has an impact in these areas. All three should be considered if an organization is to succeed and to do good. The other side of this is sustainability. Lots of companies finds themselves forced sacrifice possible benefits to wider society simply in order to keep going at a profit. Ultimately profit motives are seen far as being more important than any possible social benefits, unless the organization finds that it can do this using the society’s resources (Aupperle, Carroll, and Hatfield, 1985). A quick scan of the media backs up this negative view of what is actually going on. Too many organizations seem devoid of any degree of social responsibility. Considering the readings to date, what are the future projections for the idea of the triple bottom line? If a cost versus benefit analysis were carried out on this subject what conclusions would be reached? What reasons are there for this? Brown, Dillard and Marshall, (2006) came up with a working paper about the Triple Bottom Line. Idea. They described it as an “ongoing program of work and data capture that should resemble a system of enabling accounting” (Brown, Dillard and Marshall, p. 4, 2006) and were concerned with organizations taking on positive behaviour and responsibilities This idea of “enabling accounting” is the basic idea that any action must have an outcome that can be seen and assessed for its resulting impact, either positive or negative. Any deed which cannot be so assessed is of quite limited social value. Research in business has resulted in the publication of a number of ‘feel good’ simulations concerned with being both profitable and at the same time dealing with society’s problems. Having looked at all this , I have come to the belief that what is truly of value is the idea that organizations can become GCCs ( good global corporate citizens ) by incorporating the ideas of TBL together with CSR,( Corporate Social Responsibility). Sustainable activities and benefits, and the ideas about ambiguity, provide a broader context and a means by to address what is really essential to organizations and also to society by considering the organization as being an active and involved stakeholder. Modern day examples include Some examples of this today are the Fair Trade program which involves coffee as well as other foods, as well as bigger projects involving the environment. Companies such as Starbucks support farmers in Fair Trade practices. This allows for the development of coffee farms in sustainable ways, creating businesses which are sustainable and which enable positive agricultural livelihoods as well as financial benefits to the organization, with no damage to the society where the product is produced nor to future environmental use. Such a paradigm could be used as a template by any organization aiming at TBL. It would mane no participation in practices such as using as child labor, paying fair salaries, avoiding sexual corruption manufacturing, and offering its workers benefits, as the electronics industry in Africa or China. After reading the various papers , as well as doing other research , I conclude that TBL is a very difficult thing to quantify. Corporate Social Responsibility (CSR) has something in common with it in that acting for the benefits of society is considered to be part of the processes of a company considered to include CSR as part of its company ethos, culture, and mission. It seems reasonable to think that beneficial principles of business would include CSR. According to Freeman and Hasnaoui (2011) however , when they looked at how CSR was being interpreted in four different countries, it is not necessarily as widely taken up as might be thought. Authors on this topic state that there are many existing differences in ideas and multiple layers of definition. This hasn’t however prevented the continued development and use of CSR in commerce and education as well as philanthropic activities. The countries chosen to illustrate this were interesting. North America ( both the U.S.A. and Canada) was included as a center of research into business activities, together with two countries from the European Union, England and France. It was clearly shown from this research that in England and the United States there are large differences in the views taken about such things as profits and the effects of a company’s activities on wider society. There is a greater emphasis upon society within the E.U. and in Canada, places where there is greater equity than in the United States of America. The idea is put forward that culture is the major influence as to how CSR is carried out. The proposition has some merit, but there are also other factors such as the government and the provision of guidelines which are both ethical and legal guidelines, upon which provide the local approaches to TBL are arrived at, and how they are carried out within the local community. The ways in which CSR has been interpreted is important. It links in with changes in society norms with regard to ethics and morals during the time period from 1926 through to 2007, as shown in various papers, as delineated in Table 1 (Freeman and Hasnaoui , 2011, page 423). The idea of citizenship as a metaphor for the organization is important as discussed by Schwab (2008). The concept of the organization as a corporate citizen of the world shows up conflicts, as well as the reasoning behind the requirements of individuals and organizations. Such ideas can be carried over and translated into strict standards for correct and sustainable patterns of behaviour. Schwab (2008) takes up this idea of CSR as a belief which can result in positive actions as a stakeholder and with actions as a corporate citizen (CC) . A major part of Schwab’s theme is the idea of engagement and the degree of the impact and influence that companies can achieve if they are fully engaged as CCs. Schwab’s (2008) argument is an important one as companies have tended over time to take on a more paternal role towards society. Governments make the general provisions, but it is companies which have the major influence upon such things as pensions, health, education and mechanisms providing support where needed, providing benefits for their employees. This includes a double layer of CSR. Firstly the way in which organizations have an impact upon individuals: and secondly there is organization in the wider context of the economies, whether globally, regionally or locally (Brown, Dillard and Marshall, 2006; Schwab, 2008; Waddock, 2000, Wexler, 2009). In the case of Schwab he puts forward five important models concerning the global corporate citizen. These are firstly corporate social responsibility; secondly corporate philanthropy; thirdly corporate social entrepreneurship; fourthly, corporate governance and finally global corporate citizenship. Together these represent the full scope of social engagement by businesses ought to be. This is emphasized in the documents cited by the United Nations (UN) Global Compact and the World Economic Forum, which are part of a larger conglomeration which is made up or more than 3,000 organizations in 120 countries dealing with such things as environmental issues, human rights, corruption and labor. Organizations ought to serve their societies using policies which are socially combination of safe, contributions which are sound and satisfactory socially actions. Such contributions can include profits, as well as a number benefits due to the introduction of fresh and novel services and products. Some of these benefits can be sustained over a prolonged period. There is no one universal pattern which will fit every organization which is looking to be socially responsible, but there are some factors which do carry over into a variety of constructs. In summary contributing positively to society by engagement as a direct stakeholder provides the means for influence and direct access. The discussions presented in the learning sets were instructive and will assist in confirming the idea that the most valuable organization is one which encompasses the ideas of TBL and CSR, together with sustainability as well as strategic ambiguity. Taken all together these factors allow the organization to take part and to compete as a decent global corporate citizen (GCC). Word Count: 1,598 References Aupperle, K., Carroll, A. and Hatfield, J. (1985) ‘An empirical examination of the relationship between corporate social responsibility and profitability’, Academy of Management Journal, 28(2), pp. 446-463. [ONLINE] Available from: http://amj.aom.org/content/28/2/446d (Accessed: 12th December 2013). Brown, D., Dillard, J. and Marshall, R.S. (2006) ‘Triple Bottom Line: A business metaphor for a social construct’, Documents de treball d’economia de l’empresa, 06/2-March, pp. 1-29. [ONLINE] Available from: http://www.recercat.net/bitstream/handle/2072/2223/UABDT06-2.pdf;jsessionid=6711D8CF4B6C45A5D8966E443786D659.recercat1?sequence=1 (Accessed: 12th December 2013). Elkington, J. (2004) Enter the Triple Bottom Line. in Adrian Henriques and Julie Richardson (eds) The Triple Bottom Line: does it all add up. London: EarthScan Publications. Freeman, I. and Hasnaoui, A. (2011) ‘The meaning of corporate social responsibility: The vision of four nations’, Journal of Business Ethics, 100(3), pp. 419-443. [ONLINE] Available from: http://www.springerlink.com.ezproxy.liv.ac.uk/content/x6012j9092nj3303/ (Accessed: 12th January 2013) Schwab, K. (2008) ‘Global corporate citizenship: Working with governments and civil society’, Foreign Affairs, 87(1), pp. 107-118. [ONLINE] Available from: http://ehis.ebscohost.com.ezproxy.liv.ac.uk/ehost/detail?sid=17bc128b-f6e1-441d-809a-5e2da66b87cb%40sessionmgr113&vid=1&hid=103&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#db=a9h&AN=28018931 (12th January 2013). Waddock, S. (2000) ‘The multiple bottom lines of corporate citizenship: Social investing, reputation and responsibility audits’, Business and Society Review, 105(3), pp.323-345.[ONLINE] Available from: http://ehis.ebscohost.com.ezproxy.liv.ac.uk/ehost/results?sid=bb1e6062-9724-4c83-a094-c038ddbd8a02%40sessionmgr113&vid=2&hid=109&bquery=JN+%22Business+%26+Society+Review+(00453609)%22+AND+DT+20000901&bdata=JmRiPWJ1aCZ0eXBlPTEmc2l0ZT1laG9zdC1saXZlJnNjb3BlPXNpdGU%3d (Accessed: 12th January 2013). Wexler, M.N. (2009) ‘Strategic ambiguity in emergent coalitions: The triple bottom line’, Corporate Communications: An International Journal, 14(1), pp. 62-77. [ONLINE] Available from: http://www.emeraldinsight.com.ezproxy.liv.ac.uk/journals.htm?issn=1356-3289&volume=14&issue=1&PHPSESSID=samqm686jfv6mafino4niam074 (Accessed:12th January 2013). Read More