For this paired discussion, I was paired with Chanisha Withrow. I chose Triple Bottom Line and
Chanisha chosen Bottom line Management
Triple Bottom Line
Brief definition
The triple bottom line is a sustainability framework that measures a business's success in three
key areas: profit, people, and the planet.
Two benefits of using this strategy
Higher employee retention rates by making the work environment more pleasant for workers.
Enhanced brand perception and reputation by showing others the organization stands for more
than just making profits.
Two risks of using this strategy
There will be added cost associated with balancing all three areas of focus that may not be
replenished to the bottom-line financial profit.
increase in Employee pay, both for hourly and salaried employees
The business risk associated with a pay raise is that employees will expect their salaries to
continue going up once they begin to experience a pay raise
1.
What are the primary differences between a bottom-line management approach and
a triple-bottom-line management approach? (1-2 short paragraphs)
One of the primary differences between the bottom-line management approach and the TBI
approach, The TBL approach uses 3 areas to measure their profit (people, plant, and profit),
whereas the bottom-line approach just focuses on their financial profit (net income)
2.
In your opinion, why would an organization use a bottom-line management
approach instead of a triple-bottom-line management approach? (1-2 short paragraphs)
A business may decide to use a bottom-line management approach because their focus is profit.
They aren't concerned about all the three P's, there concern is with building the business and
showing their profitability to shareholders or prospective investors.
3.
Why do you think corporations would want to shift to the triple-bottom-line
approach in today's business environment? Use examples, as appropriate, to support your
opinions. (1-2 short paragraphs)
In today's business a company will have a greater impact by using TBL approach. It will shift
their importance on just wanting financial performance. It will encourage them to focus on
social, environmental, philanthropic, and non-financial goals instead of purely making decisions
on what will maximize profit. By using the TBL it will also show their employees they are
valued as well.
Reference
Miller, K. (2020, December 8). The Triple Bottom Line: What It Is & Why It's Important.
Business Insights Blog. https://online.hbs.edu/blog/post/what-is-the-triple-bottom-line
Bottom Line Article by Wallstreetmojo Team . Reviewed by Dheeraj Vaidya, CFA, FRM Retrieved
January 3, 2023_ Bottom Line - Meaning, Examples, vs Top Line, How to Improve?
(wallstreetmojo.com)