Conflicts will inevitably be met during the process of meeting all needs in the triple bottom line as they are difficult to achieve simultaneously. The measurement or the degree a business is able to achieve their economic, social and environmental responsibilities is referred to the phrase created by John Elkington’s, ‘Triple Bottom Line’. The concept involves the measurement of a business’s profitability, the degree of society’s satisfaction and the extent of a business’s environmental responsibility. However achieving all these responsibilities simultaneously is practically impossible, however Tesla Motors shows possible strategies. Tesla Motors is an American automotive and energy storage company who sell residential batteries and fully
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Founded in 2003, Tesla is a relatively new company that has had a variety of problems with their solvency. Although they were able to survive due to their continuous investment from investors, (Brooke Crothers 2015, para 4) states that Tesla loses more than $4000, per Model S sold, which shows the difficulties of creating a cost efficient product in niche market. Additionally, Tesla’s survivability is explained by (Boris Marjanovic, 2016, para 4), that Tesla can only sustain itself for another six to eight months if they sustain their ‘cash position of $1.2 billion and an estimated monthly cash burn rate of $150 million’. Although these figures show, Tesla 's short term insolvency, due to big investments into their operations, it shows that it is difficult for businesses to simultaneously achieve their economic and environmental responsibilities. In conclusion, for all, for-profit businesses their early stages of operations are geared towards achieving their economic line before taking in considerations of their social and environmental …show more content…
Social responsibilities involve favorable business practices for society, equality in the workplace and the impacts that the business produces, make into society. For instance businesses in the manufacturing industry, generally adopt an autocratic management style creating high output with low motivation, where customers will be able to purchase the products at a lower price due to the high supply. This customer-centered approach recognises the needs and wants of customers allowing them to successfully achieve their social responsibility. (Kuehn K, 2014) states that ‘Relationships’ are ‘valuable…connections… [For] customers and [the] marketplace’. Whereas, businesses that require an employee’s intelligence, are less resistant to suit the needs and wants of an employee as it allows them to create more output and a positive image towards society. (Moratis &Curtis, 2011) quotes ‘Social responsibility has do with the willingness of an organisation’. This shows that business practices of achieving social responsibility, differ, according to a business’s model and
Founded in 2003, Tesla is a relatively new company that has had a variety of problems with their solvency. Although they were able to survive due to their continuous investment from investors, (Brooke Crothers 2015, para 4) states that Tesla loses more than $4000, per Model S sold, which shows the difficulties of creating a cost efficient product in niche market. Additionally, Tesla’s survivability is explained by (Boris Marjanovic, 2016, para 4), that Tesla can only sustain itself for another six to eight months if they sustain their ‘cash position of $1.2 billion and an estimated monthly cash burn rate of $150 million’. Although these figures show, Tesla 's short term insolvency, due to big investments into their operations, it shows that it is difficult for businesses to simultaneously achieve their economic and environmental responsibilities. In conclusion, for all, for-profit businesses their early stages of operations are geared towards achieving their economic line before taking in considerations of their social and environmental …show more content…
Social responsibilities involve favorable business practices for society, equality in the workplace and the impacts that the business produces, make into society. For instance businesses in the manufacturing industry, generally adopt an autocratic management style creating high output with low motivation, where customers will be able to purchase the products at a lower price due to the high supply. This customer-centered approach recognises the needs and wants of customers allowing them to successfully achieve their social responsibility. (Kuehn K, 2014) states that ‘Relationships’ are ‘valuable…connections… [For] customers and [the] marketplace’. Whereas, businesses that require an employee’s intelligence, are less resistant to suit the needs and wants of an employee as it allows them to create more output and a positive image towards society. (Moratis &Curtis, 2011) quotes ‘Social responsibility has do with the willingness of an organisation’. This shows that business practices of achieving social responsibility, differ, according to a business’s model and