The Triple Bottom Line Concept

The Triple Bottom Line

• The concept of the triple bottom line was coined by John Elkington in 1997, emphasizing the need to measure value beyond financial profit or loss to include social and environmental aspects.
• The triple bottom line is often represented as three overlapping circles: economy, social realities, and environmental health.

The Evolution of the Triple Bottom Line

• The concept has evolved to mainstream the idea of sustainability as including people, planet, and profit.
• It highlights the importance of long-term sustainability for organizations, requiring more than just financial equity.
• It also clarifies that businesses can achieve financial success while prioritizing sustainability.

Critique of the Overlapping Circles Image

• The image of the triple bottom line displays three circles of equal size, raising questions about the relative value or size of each circle.
• Does this mean that the economy is equal in value to the social and environmental circles?

Science and the Triple Bottom Line

• Science reveals that the planet operates in a balanced way through natural cycles powered by energy from the Sun.
• The laws of thermodynamics state that matter is not created or destroyed, and everything tends towards dispersal (entropy).
• Photosynthesis, powered by plant cells, is the process by which matter is structured on our planet, making it the foundation of the environment circle.

Nested Circles: A New Perspective

• The environment circle, which includes plant cells, is the foundation of the triple bottom line, as everything comes from nature at some point.
• The social circle exists within the environment, and the economy is a byproduct of society.
• Therefore, the economy is a wholly owned subsidiary of the environment, and sustainability requires complying with social and environmental conditions.

Implications for Business

• Economic decisions should be part of a strategy to make money while achieving social and ecological sustainability.
• The economy is a means to an end, not the end itself, and paying the bills happens on multiple levels, ultimately dependent on photosynthesis.
• This perspective is helpful for businesses integrating sustainability into their operations and rationale.

The Triple Bottom Line

• The concept was coined by John Elkington in 1997, emphasizing the need to measure value beyond financial profit or loss to include social and environmental aspects.
• The triple bottom line is often represented as three overlapping circles: economy, social realities, and environmental health.

The Evolution of the Triple Bottom Line

• The concept has evolved to mainstream the idea of sustainability as including people, planet, and profit.
• It highlights the importance of long-term sustainability for organizations, requiring more than just financial equity.
• It also clarifies that businesses can achieve financial success while prioritizing sustainability.

Critique of the Overlapping Circles Image

• The image of the triple bottom line displays three circles of equal size, raising questions about the relative value or size of each circle.

Science and the Triple Bottom Line

• Science reveals that the planet operates in a balanced way through natural cycles powered by energy from the Sun.
• The laws of thermodynamics state that matter is not created or destroyed, and everything tends towards dispersal (entropy).
• Photosynthesis, powered by plant cells, is the process by which matter is structured on our planet, making it the foundation of the environment circle.

Nested Circles: A New Perspective

• The environment circle, which includes plant cells, is the foundation of the triple bottom line, as everything comes from nature at some point.
• The social circle exists within the environment, and the economy is a byproduct of society.
• The economy is a wholly owned subsidiary of the environment, and sustainability requires complying with social and environmental conditions.

Implications for Business

• Economic decisions should be part of a strategy to make money while achieving social and ecological sustainability.
• The economy is a means to an end, not the end itself, and paying the bills happens on multiple levels, ultimately dependent on photosynthesis.
• This perspective is helpful for businesses integrating sustainability into their operations and rationale.

Understand the concept of the triple bottom line, coined by John Elkington, which includes social, environmental, and economic aspects of sustainability. Learn about its evolution and importance in modern business practices.