As we emerge out of a Friedman model of Capitalism that proposes "the social responsibility of business is to increase its profits”, an increasing number of enterprises are subscribing to a new paradigm that values stakeholders, rather than just shareholders. Catapulted by the surmounting evidence that progress lacks purpose if there is nothing left to benefit from it, businesses are demonstrating both the desire and the necessity to include social and environmental outcomes in holistic, long-term success metrics. So how can you begin today?
As we emerge out of a Friedman model of Capitalism that proposes "the social responsibility of business is to increase its profits”, an increasing number of enterprises are subscribing to a new paradigm that values stakeholders, rather than just shareholders. Catapulted by the surmounting evidence that progress lacks purpose if there is nothing left to benefit from it, businesses are demonstrating both the desire and the necessity to include social and environmental outcomes in holistic, long-term success metrics. So how can you begin today?
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The Triple Bottom Paradigm
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John Elkington’s Triple Bottom Line understands that figures are pointless without wider context - one that considers a full societal cost-benefit analysis. It is behavioural science that shapes and impacts organisations, and most companies fail not because of a poor product, but of a poor company culture.
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When an organisation lacks a cohesive vision, goals and people become misaligned. Today, an increasing number of organisations are beginning to realise that success goes beyond what is reflected in the Profit and Loss statement. At a time when technology companies in particular face an unprecedented opportunity to disrupt, bring positive change and uplift lives, it may be time to review how your company measures its bottom line.
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Benefit Corporations
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Far from being a mere conscious of crisis, the Triple Bottom Line is already demonstrating its economic viability and advantages amongst the gold standard B Corporations. As well as demonstrating greater profitability upon certification, the third party regulated network of enterprises are also safeguarding their sustainability in more ways than one.
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Considering the social and environmental metrics of progress alongside economic outcomes not only ensures financial stability but also safeguards longevity in the long run, something that is of priority for enterprises of all sizes amidst a wider climate of increasing instability and uncertainty.
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Companies that embrace people and planet alongside profit consider how their businesses affect employees and the communities they support, as well as their carbon footprint, usage of resources, and waste management. No detail is left unturned. This isn't to say that P&L statements should be ignored; cash flow is essential, and businesses still need to generate income.
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However it does mean having a social purpose alongside a functional bottom line - one that commits to making an impact as opposed to mere green washing or white washing for consumer favour alone. As karma would have it, the returns are significant: from harnessing greater employee engagement and productivity, to staying ahead of the innovation curve in times to come.
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How To Become A Force For Good
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At a time when privacy regulations, security and data ethics are growing concerns around the world, technology is in a unique position to address these issues and other social concerns that affect communities - harbouring the potential to bring about net positive and lasting change, while targeting business goals.
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Know Your Impact And Purpose: simply having the greater goal of achieving profitability and making x amount returns by year 5 was never visionary enough. Find out what matters to you and your stakeholders and consider what role the company plays in society.
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Are you a transport tech company that cares about accessibility, or a health tech company focused on improving the quality of people's lives? Begin with your core offerings and reflect which among these can be channeled toward the greater good.
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Reduce Reuse Recycle: Focus on waste and cost reduction - the most impactful parts of the reduce, reuse, recycle method are reduction and reuse. Whatever you don't print or produce, you can save. Going paper-free goes a long way in reducing waste and costs - the same goes for physical resources that come with a workplace.
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Now more than ever you can also consider the tangible benefits of an increasingly remote or hybrid workforce. The pandemic has proved that excellent collaboration is possible without physical meetings, and it's a great opportunity to reduce waste in terms of travel time and resources.
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Invest In People: Provide employees with equitable benefits aside from just financial compensation. A company is only as strong as its workforce and there are great circular benefits to be had when it comes to investing in employee wellbeing and up-skilling during times of rapid change and transformation.
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Organic Initiatives: Empower smart people, and give them the latitude to come up with innovative ideas. As opposed to a stringent top down approach, trusting employees to leverage their internal motivators becomes easier and more organic with an authentically aligned purpose. Circumstance and necessity can also give birth to some of the best initiatives.
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A triple-bottom strategy accounts for more than just the shareholders: this includes employers, customers, suppliers and communities. By looking at the bigger picture, an increasing number of tomorrow’s enterprises can join the growing ranks of companies ensuring their longevity by becoming a force for good.
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