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The triple bottom line, measuring organizational (and societal) success; economic, environmental and social. With the ratification of the UN ICLEI TBL standard for urban and community accounting in early 2007, this became the dominant approach to public sector full cost accounting. Similar UN standards apply to natural capital and human capital measurement to assist in measurements required by TBL, e.g. the ecoBudget standard for reporting ecological footprint. This article is about the United Nations, for other uses of UN see UN (disambiguation) Official languages English, French, Spanish, Russian, Chinese, Arabic Secretary-General Kofi Annan (since 1997) Established October 24, 1945 Member states 191 Headquarters New York City, NY, USA Official site http://www. ...
ICLEI - Local Governments for Sustainability is an international association of local governments and national and regional local government organizations that have made a commitment to sustainable development. ...
< [[[[math>Insert formula here</math>The public sector is that part of economic and administrative life that deals with the delivery of goods and services by and for the [[government </math></math></math></math> Direct administration funded through taxation; the delivering organisation generally has no specific requirement to meet commercial...
Full cost accounting (FCA) generally refers to the process of collecting and presenting information (costs as well as advantages) for each proposed alternative when a decision is necessary. ...
Natural capital, as described in the book Natural Capitalism, is a metaphor for the mineral, plant, and animal formations of the Earths biosphere when viewed as a means of production of oxygen, water filter, erosion preventer, or provider of other ecosystem services. ...
Human capital is a way of defining and categorizing the skills and abilities as used in employment and as they otherwise contribute to the economy. ...
In the private sector, a commitment to corporate social responsibility implies a commitment to some form of TBL reporting. This is distinct from the more limited changes required to deal only with ecological issues. The private sector of a nations economy consists of all that is outside the state. ...
Corporate Social Responsibility (CSR) is a concept which encourages organizations to consider the interests of society by taking responsibility for the impact of the organizations activities on customers, employees, shareholders, communities and the environment in all aspects of its operations. ...
Definition
The phrase was coined by John Elkington in 1994.[1] It was later expanded and articulated in his 1997 book Cannibals with Forks: the Triple Bottom Line of 21st Century Business.[2][3] Sustainability, itself, was first defined by the Brundtland Commission of the United Nations in 1987. The Earth Day flag includes a NASA photo. ...
The Brundtland Commission - formally the World Commission on Environment and Development (WCED), known by the name of its Chair Gro Harlem Brundtland, was convened by the United Nations in response to the 1983 General Assembly Resolution A/38/161 - Process of preparation of the Environmental Perspective to the Year 2000...
The concept of TBL demands that a company's responsibility be to 'stakeholders' rather than shareholders. In this case, 'stakeholders' refers to anyone who is influenced, either directly or indirectly, by the actions of the firm. According to the stakeholder theory, the business entity should be used as a vehicle for coordinating stakeholder interests, instead of maximising shareholder(owner) profit.
The Bottom Lines "People, Planet and Profit" are used to succinctly describe the triple bottom lines and the goal of sustainability. The Earth Day flag includes a NASA photo. ...
"People" (Human Capital) pertains to fair and beneficial business practices toward labor and the community and region in which a corporation conducts its business. A TBL company conceives a reciprocal social structure in which the well being of corporate, labor and other stakeholder interests are interdependent. A triple bottom line enterprise seeks to benefit many constituencies, not exploit or endanger any group of them. The "upstreaming" of a portion of profit from the marketing of finished goods back to the original producer of raw materials, i.e., a farmer in fair trade agricultural practice, is a not unusual feature. In concrete terms, a TBL business would not knowingly use child labor, would pay fair salaries to its workers, would maintain a safe work environment and tolerable working hours, and would not otherwise exploit a community or its labor force. A TBL business also typically seeks to "give back" by contributing to the strength and growth of its community with such things as health care and education. Quantifying this bottom line is relatively new, problematic and often subjective. The Global Reporting Initiative (GRI) has developed guidelines to enable corporations and NGO's alike to comparably report on the social impact of a business. Human capital is a way of defining and categorizing the skills and abilities as used in employment and as they otherwise contribute to the economy. ...
See Social structure of the United States for an explanation of concepts exsistance within US society. ...
For other uses, see Fair trade (disambiguation). ...
Global Reporting Initiative (GRI) is a multi-stakeholder process and independent institution whose mission is to develop and disseminate globally applicable Sustainability Reporting Guidelines. ...
NGO is an abbreviation or code for: Non-governmental organization Nagoya Airport (IATA code) This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ...
"Planet" (Natural Capital) refers to sustainable environmental practices. A TBL company endeavors to benefit the natural order as much as possible or at the least do no harm and curtail environmental impact. A TBL endeavor reduces its ecological footprint by, among other things, carefully managing its consumption of energy and non-renewables and reducing manufacturing waste as well as rendering waste less toxic before disposing of it in a safe and legal manner. "Cradle to grave" is uppermost in the thoughts of TBL manufacturing businesses which typically conduct a life cycle assessment of products to determine what the true environmental cost is from the growth and harvesting of raw materials to manufacture to distribution to eventual disposal by the end user. A triple bottom line company does not produce harmful or destructive products such as weapons, toxic chemicals or batteries containing dangerous heavy metals for example. Currently, the cost of disposing of non-degradable or toxic products is borne financially by governments and environmentally by the residents near the disposal site and elsewhere. In TBL thinking, an enterprise which produces and markets a product which will create a waste problem should not be given a free ride by society. It would be more equitable for the business which manufactures and sells a problematic product to bear part of the cost of its ultimate disposal. Ecologically destructive practices, such as overfishing or other endangering depletions of resources are avoided by TBL companies. Often environmental sustainablity is the more profitable course for a business in the long run. Arguments that it costs more to be environmentally sound are often specious when the course of the business is analyzed over a period of time. Generally, sustainability reporting metrics are better quantified and standardized for environmental issues than for social ones. A number of respected reporting institutes and registries exist including the Global Reporting Initiave, CERES, Institute 4 Sustainability and others. A life cycle assessment (also known as life cycle analysis, life cycle inventory, ecobalance, cradle-to-grave-analysis, well-to-wheel analysis, and dust-to-dust energy cost) is the assessment of the environmental impact of a given product or service throughout its lifespan. ...
"Profit" is the bottom line shared by all commerce, conscientious or not. In the original concept, within a sustainability framework, the "profit" aspect needs to be seen as the economic benefit enjoyed by the host society. It is the lasting economic impact the organisation has on its economic environment. This is often confused to be limited to the internal profit made by a company or organisation. Therefore, a TBL approach cannot be interpreted as traditional corporate accounting plus social and environmental impact. Several books are available on the topic. Among them, Harvard Business Review on Corporate Responsibility by Harvard Business School Press; The Soul of a Business: Managing for Profit and the Common Good by Tom Chappell; Capitalism at the Crossroads: The Unlimited Business Opportunities in Solving the World's Most Difficult Problems by Professor Stuart L. Hart; The Triple Bottom Line: How Today's Best-Run Companies Are Achieving Economic, Social and Environmental Success -- and How You Can Too by Andrew W. Savitz and Karl Weber; The Sustainability Advantage: Seven Business Case Benefits of a Triple Bottom Line (Conscientious Commerce) by Bob Willard.
Arguments in favor of the concept Fiscal policy of governments usually claims to be concerned with identifying social and natural deficits on a less formal basis. However, in a democracy at least, such choices are usually guided more by ideology than by economics. The primary benefit of embedding one approach to measurement of these deficits would be first to direct monetary policy to reduce them, and eventually achieve a global monetary reform by which they could be systematically and globally reduced in some uniform way. Fiscal policy is the economic term that defines the set of principles and decisions of a government in setting the level of public expenditure and how that expenditure is funded. ...
Political Ideologies Part of the Politics series Politics Portal This box: An ideology is an organized collection of ideas. ...
Face-to-face trading interactions on the New York Stock Exchange trading floor. ...
It has been suggested that monetary theory be merged into this article or section. ...
Monetary Reform is accounting reform that reaches more deeply into banking central bank, money supply and monetary policy. ...
The argument is that the Earth's carrying capacity is itself at risk, and that in order to avoid catastrophic breakdown of climate or nature's services, there is a need for a comprehensive reform in global financial institutions similar in scale to that undertaken at Bretton Woods in 1944, and not since[citation needed]. A major proponent of this has been Marilyn Waring. The equilibrium maximum of the population of an organism is known as the ecosystems carrying capacity for that organism. ...
Natures services is an umbrella term for the ways in which nature benefits humans, particularly those benefits that can be measured in economic terms. ...
Bretton Woods is an area within the town of Carroll, New Hampshire whose principal points of interest are three leisure and recreation facilities. ...
1944 (MCMXLIV) was a leap year starting on Saturday. ...
Marilyn Waring (born 1952) is a renowned New Zealand feminist, an activist for female human rights, an author and an academic. ...
With the emergence of an externally-consistent green economics and agreement on definitions of potentially contentious terms such as full-cost accounting, natural capital and social capital, the prospect of formal metrics for ecological and social loss or risk has grown less remote through the 1990s. Green economics is an unconventional approach to economics by non-economists. ...
Full cost accounting (FCA) generally refers to the process of collecting and presenting information (costs as well as advantages) for each proposed alternative when a decision is necessary. ...
Natural capital, as described in the book Natural Capitalism, is a metaphor for the mineral, plant, and animal formations of the Earths biosphere when viewed as a means of production of oxygen, water filter, erosion preventer, or provider of other ecosystem services. ...
Social capital is a core concept in business, economics, organizational behaviour, political science, and sociology, defined as the advantage created by a persons location in a structure of relationships. ...
For the band, see 1990s (band). ...
In the United Kingdom in particular, the London Health Observatory has undertaken a formal program to address social deficits via a fuller understanding of what "social capital" is, how it functions in a real community (that being the City of London), and how losses of it tend to require both financial capital and significant political and social attention from volunteers and professionals to help resolve. The data they rely on is extensive, building on decades of statistics of the Greater London Council since World War II. There are some similar studies in North America. A community is a social group of organisms sharing an environment, normally with shared interests. ...
Motto: Domine dirige nos Latin: Lord, guide us Shown within Greater London Sovereign state Constituent country Region Greater London Status City and Ceremonial County Admin HQ Guildhall Government - Leadership see text - Mayor John Stuttard - MP Mark Field - London Assembly John Biggs Area - City 1. ...
In brief, financial capital is money used by entreprenuers and businesses to buy what they need to make their products (or provide their services). ...
For other uses, see Volunteer (disambiguation). ...
Arms of the Greater London Council The Greater London Council (GLC) was the top-tier local government administrative body for Greater London from 1965 to 1986. ...
Combatants Allied powers: China France Great Britain Soviet Union United States and others Axis powers: Germany Italy Japan and others Commanders Chiang Kai-shek Charles de Gaulle Winston Churchill Joseph Stalin Franklin Roosevelt Adolf Hitler Benito Mussolini Hideki TÅjÅ Casualties Military dead: 17,000,000 Civilian dead: 33,000...
North America North America is a continent[1] in the Earths northern hemisphere and (chiefly) western hemisphere. ...
Studies of nature's services and assessments of the value of Earth have tried to determine what might constitute an ecological or natural life deficit. The Kyoto Protocol relies on some measures of this sort, and actually relies on some value of life calculations that, among other things, are explicit about the ratio of the price of a human life between developed and developing nations (about 15 to 1). While the motive of this number was to simply assign responsibility for a cleanup, such stark honesty opens not just an economic but political door to some kind of negotiation - presumably to reduce that ratio in time to something seen as more equitable. As it is, people in developed nations can be said to benefit 15 times more from ecological devastation than in developing nations, in pure financial terms. According to the IPCC, they are thus obliged to pay 15 times more per life to avoid a loss of each such life to climate change—Kyoto seeks to implement exactly this formula, and is therefore sometimes cited as a first step towards getting nations to accept formal liability for damage inflicted on ecosystems shared globally. Natures services is an umbrella term for the ways in which nature benefits humans, particularly those benefits that can be measured in economic terms. ...
In economics, value of Earth is the ultimate in ecosystem valuation, and important to value of life calculations. ...
Kyoto Protocol Opened for signature December 11, 1997 in Kyoto, Japan Entered into force February 16, 2005. ...
FUCKING BULLSHIT!! The value of life is an economic or moral value assigned to life in general, or to specific living organisms. ...
Ecological health or ecological integrity or ecological damage is used to refer to symptoms of an ecosystems pending loss of carrying capacity, ability to perform natures services, or pending ecocide due to cumulative causes such as pollution. ...
IPCC is science authority for the UNFCCC The Intergovernmental Panel on Climate Change (IPCC) was established in 1988 by two United Nations organizations, the World Meteorological Organization (WMO) and the United Nations Environment Programme (UNEP) to assess the risk of human-induced climate change. The Panel is open to all...
Variations in CO2, temperature and dust from the Vostok ice core over the last 450,000 years For current global climate change, see Global warming. ...
In the most general sense, a liability is anything that is a hindrance, or puts individuals at a disadvantage. ...
Advocacy for triple bottom line reforms is common in Green Parties. Some of the measures undertaken in the European Union towards the Euro currency integration standardize the reporting of ecological and social losses in such a way as to seem to endorse in principle the notion of unified accounts, or unit of account, for these deficits. This article is about the green parties around the world. ...
For other uses, see Euro (disambiguation). ...
A unit of account is a standard numerical unit of measurement for the market value of goods, services, and other transactions. ...
Arguments against the concept While many people agree with the importance of good social conditions and preservation of the environment, there are also many who disagree with the 'Triple Bottom Line' as the way to enhance these conditions. The main arguments against it may be summarised as; - Division of Labour, which is characteristic of rich societies and a major contributor to their wealth, leading to the view that organisations contribute most to the welfare of society in all respects when they focus on what they do best... the baker exchanges his loaves with the shoemaker rather than making his own shoes to the benefit of both and by extension the whole of society. In the case of business the expertise is in satisfying the needs of society and generating a Value added surplus. Thus the 'triple bottom line' is thought to be harmful by diverting business attention away from its core competency. Just as charitable organisations like the Salvation Army would not be expected to attend to environmental issues or pay a cash dividend, and Greenpeace would not be expected to make a profit or succor the homeless, business should not be expected to take on concerns outside its core expertise.
- Effectiveness: It is observed that concern for social and environmental matters is rare in poor societies (a hungry person would rather eat the whale than photograph it). As a society becomes richer its citizens develop an increasing desire for a clean environment and protected wildlife, and both the willingness and financial ability to contribute to this and to a compassionate society. Indeed support for the concept of the 'Triple Bottom Line' itself is said to be an example of the choices available to the citizens of a society made wealthy by businesses attending to business. Thus by unencumbered attention to business alone, Adam Smith's Invisible Hand will ensure that business contributes most effectively to the improvement of all areas of society, social and environmental as well as economic.
- Nationalism: Some countries adopt a nationalistic approach with the view that they must look after their own citizens first. This view is not confined to one sector of society, having support from elements of business, labor unions, and politicians.
- Libertarian: As it is possible for a socially responsible person to sincerely believe that the 'Triple Bottom Line' is harmful to society, the libertarian view is that it would be arrogant to force them to support a mechanism for the improvement of society that may, or may not, be the best available. That is, those who would not force Greenpeace and the Salvation Army to generate a profit should not force businesses to take responsibilities outside their area of expertise.
- Inertia: The difficulty of achieving global agreement on simultaneous policy may render such measures at best advisory - and thus not enforceable. For example, people may be unwilling to undergo a depression or even sustained recession to replenish lost ecosystems.
- Application: According to Fred Robin's 'The Challenge of TBL: A Responsibility to Whom?' one of the major weaknesses of the TBL framework is its ability to be applied in a monetary-based economic system. Because there is no single way to monetarially measure the benefits on the society and environment as there is with profit, it does not allow for businesses to sum across all three bottom lines. In this regard, it makes it difficult for businesses to recognize the benefits of using TBL for the company, itself.
Division of labour is the specialisation of cooperative labour in specific, circumscribed tasks and roles, intended to increase efficiency of output. ...
Shield of The Salvation Army The Salvation Army is a non-military evangelical Christian organisation. ...
Greenpeace protest against Esso / Exxon Mobil. ...
Effectiveness means the capability of producing an effect. ...
For other persons named Adam Smith, see Adam Smith (disambiguation). ...
For other use of Invisible Hand, please see Invisible hand (disambiguation) The invisible hand is a metaphor coined by the economist Adam Smith to illustrate how those who seek wealth by following their individual self-interest, stimulate the economy as a secondary effect and thus assist society as a whole. ...
Eugène Delacroixs Liberty Leading the People, symbolising French nationalism during the July Revolution 1830. ...
See also Libertarianism and Libertarian Party Libertarian,is a term for person who has made a conscious and principled commitment, evidenced by a statement or Pledge, to forswear violating others rights and usually living in voluntary communities: thus in law no longer subject to government supervision. ...
Simultaneous policy requires governments in all jurisdictions at once, worldwide, to implement a policy shift at once, so that none is disadvantaged. ...
On the Threshold of Eternity. ...
In macroeconomics, the definition of recession is a decline in any countrys Gross Domestic Product (GDP), or negative real economic growth, for two or more successive quarters of a year. ...
Legislation Legislation permitting corporations to adopt a 'Triple Bottom Line' is under consideration in some jurisdictions including Minnesota and Oregon. Some businesses have voluntarily adopted a 'Triple Bottom Line' as part of their articles of incorporation or bylaws, and some have advocated for state laws creating a "Sustainable Corporation" that would grant triple bottom line businesses benefits such as tax breaks [1]. The triple bottom line has been adopted as a part of the State Sustainability Strategy[2], accepted by the Government of Western Australia. This article describes the national government of Australia. ...
See also Double bottom line is a business term used in socially responsible enterprise and investment. ...
This is an alphabetical list of notable economists. ...
This article or section does not cite any references or sources. ...
The Earth Day flag includes a NASA photo. ...
Value networks (value webs), are the human and technical resources in a business that work together to form relationships and add value to a product or service. ...
Value network analysis is a business modeling methodology for understanding internal and external value networks. ...
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