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.