PrintEconomic Dimensions of Sustainability Ethics
You’ve all heard the term “triple bottom line” (TBL), but what does it mean? It's a way of measuring success beyond profits alone.
“The TBL is an accounting framework that incorporates three dimensions of performance: social, environmental and financial. This differs from traditional reporting frameworks as it includes ecological (or environmental) and social measures that can be difficult to assign appropriate means of measurement. The TBL dimensions are also commonly called the three Ps: people, planet and profits.”
Are you starting to get the drift of the depth and breadth of the interconnectedness theme that keeps appearing in our readings and discussions?
The idea that businesses should measure more than just profit didn’t come to fruition until the mid 1990s. Since then, there's been a concerted effort to define the parameters involved in the TBL and how to measure those parameters. Because measuring sustainability efforts can be fluid and hard to define, only a loose general framework can be used to talk broadly about the idea. In our reading, The Triple Bottom Line: What Is It, and How Does It Work? (see below) Slaper and Hall discuss the components of the TBL and how it is measured.
Corporate Social Responsibility (CSR) is another way to talk about the triple bottom line. Many companies have CSR plans readily available to the general public. In a way, CSR is another avenue to advance their brand and secure more revenue. Kibert et al. argue that “Companies engaged in the CSR framework accrue significant benefits such as a better brand identity, lower levels of regulatory scrutiny, reduced liability, a better reputation among prospective employees, and a far greater probability of gaining a “license to operate” in communities where they proposed to establish operations.” (2012, 302) What the authors are trying to say is that it pays organizations to establish CSR practices. Examples of widely recognized companies that proudly display their CSR efforts include:
- Ben and Jerry's
- Starbucks
- Tom's Shoes
- Adidas, see video below (2:21 minutes)
At the adidas group, we have a deep-rooted commitment towards our employees, the people that produce our products, the environment and the communities in which we operate. We strive to integrate sustainability into our business from product design, through manufacturing, to the places where our products are sold. So, how do we do this? Follow us on a journey through the four pillars of our sustainability program.
Product
We are constantly looking for better ways to create product, mainly through innovative processes, increased efficiencies, and greater use of environmentally preferred materials. For example, in 2012, we launched the adidas dry die collection, making us the first in the market to die clothing without water. We’ve also committed to using 100% sustainable cotton in all of our products by 2018 which means efficient irrigation, fewer pesticides, and fair working conditions. Let’s move on to people.
People
We positively influence the lives of our employees, factory workers, as well as people living in the communities where we operate. Our supplier’s code of conduct was introduced back in 1998, and we continue to drive change for the people that make our products. Did you know that in 2012 we introduced an SMS program allowing factory workers to anonymously share their concerns? And for our own employees, we have developed a number of programs to promote diversity, work-life integration, and continued learning. We also support employee volunteering opportunities and community programs around the world. So what about the planet?
Planet
Here, the focus is on reducing the environmental footprint of both our own operations and at the factories making our products. At the adidas group properties, our green company initiative saves water, paper, and energy. Similarly, we monitor the environmental performance of our factories via audits and train our suppliers on best practices.
We have partnerships. We are not in this alone. Did you know that we collaborate with others to improve our industry? We have been honored for our work over the last few decades for our innovative and practical approach towards sustainability. However, we do recognize the path ahead of us is a marathon, not a sprint, and we will continue to be committed to this journey.
Optional Reading
- Working Toward Sustainability: Ethical Decision Making in a Technological World, read the first section of "Economic Dimensions of Sustainability Ethics" (p.123) Then also read the section on "Economic Sustainability", in Chapter 11. p. 297)
You can find a free electronic version under Library Resources in Canvas. - Read the section entitled "What Measures Go Into the Index" of "The Triple Bottom Line: What Is It and How Does it Work?" article. Of course, you are welcome to read the entire article if you want.
- Learn more in the Business Daily article titled What is Corporate Social Responsibility?