Triple Bottom Line

Environmental sustainability: recycling, waste management, water management, renewable energy, reusable materials, ‘greener’ supply chains, reducing paper use and adopting Leadership in Energy and Environmental Design (LEED) building standards.”People, planet and profit”, also known as the triple bottom line, form one way to evaluate CSR. “People” refers to fair labour practices, the community and region where the business operates. “Planet” refers to sustainable environmental practices. Profit is the economic value created by the organization after deducting the cost of all inputs, including the cost of the capital (unlike accounting definitions of profit).

This measure was claimed to help some companies be more conscious of their social and moral responsibilities. However, critics claim that it is selective and substitutes a company’s perspective for that of the community. Another criticism is about the absence of a standard auditing procedure.

The term was coined by John Elkington in 1994.

Community involvement: This can include raising money for local charities, providing volunteers, sponsoring local events, employing local workers, supporting local economic growth, engaging in fair trade practices.

Ethical marketing: Companies that ethically market to consumers are placing a higher value on their customers and respecting them as people who are ends in themselves. They do not try to manipulate or falsely advertise to potential consumers. This is important for companies that want to be viewed as ethical.

CSR in action

Environmental sustainability: recycling, waste management, water management, renewable energy, reusable materials, ‘greener’ supply chains, reducing paper use and adopting Leadership in Energy and Environmental Design (LEED) building standards.

Community involvement: This can include raising money for local charities, providing volunteers, sponsoring local events, employing local workers, supporting local economic growth, engaging in fair trade practices.

Ethical marketing: Companies that ethically market to consumers are placing a higher value on their customers and respecting them as people who are ends in themselves. They do not try to manipulate or falsely advertise to potential consumers. This is important for companies that want to be viewed as ethical.

What is Corporate Social Responsibility?

Corporate social responsibility (CSR, also called corporate sustainability, sustainable business, corporate conscience, corporate citizenship, conscious capitalism, or responsible business) is a type of international private business self-regulation.

While once it was possible to describe CSR as an internal organisational policy or a corporate ethic strategy, that time has passed as various international laws have been developed and various organisations have used their authority to push it beyond individual or even industry-wide initiatives.

While it has been considered a form of corporate self-regulation for some time, over the last decade or so it has moved considerably from voluntary decisions at the level of individual organisations, to mandatory schemes at regional, national and even transnational levels. Read more here…