Triple Bottom Line Case Study

The integration and adaptation of sustainable procedures in any business requires a Triple Bottom Line approach. This approach can also be a micro solution to the tragedy of the commons problem. The concept of the triple bottom line implies that a company’s successfulness cannot be judged solely on financial performance, but on environmental and social impacts as well. As Hardin described, a shift in human values is needed in order for this approach to work, as well as a voluntary coercion collaborative effort from all businesses. A company’s responsibility must not only be to the shareholders, but also to the stakeholders. These three areas are interconnected, and are dependent on one another for success. This approach also illustrates the …show more content…
Companies are continuously seeking new ways to improve financial, social, and environmental performance, in order to protect reputational assets, and win shareholder as well as stakeholder trust. In response to society’s changing expectations, businesses are pressured to actively engage with a wider, and more diverse group of stakeholders concerned with social responsibility and sustainability. With the use of Triple Bottom Line reporting, organizations can demonstrate that they are contributing to society appropriately. Many companies who voluntarily decide to partake in these types of “social audits” create enhanced transparency and accountability, which will to sustainability. This focus on sustainability helps businesses manage their environmental and social impacts, as well as improves natural resource …show more content…
Companies who voluntarily conduct social audits hold themselves to a different standard. These businesses increase public trust, decrease consumer risks, and help to prevent any negative public perception. The Forest Stewardship is a great example of how self-regulation was used in response to the lack of regulation of natural resources. Honda, a Japanese multinational conglomerate company known for manufacturing automobiles, voluntarily conducts Sustainability Reports regarding the quality of their products, safety and benefits for all workers, and their company’s social and environmental impact. As Group #4 pointed out in their social audit presentation, Honda’s imitative of creating a sustainable society where people can enjoy life, has increased company reputation and places them amongst the top ranked best global green brands. Their use of an annual Sustainability Report helps to bridge the gap that exists between corporate environmental practices and consumer perception of those