InThinking Revision Sites

INTHINKING REVISION SITES

Own your learning

Why not also try our independent learning self-study & revision websites for students?

We currenly offer the following DP Sites: Biology, Chemistry, English A Lang & Lit, Maths A&A, Maths A&I, Physics, Spanish B

"The site is great for revising the basic understandings of each topic quickly. Especially since you are able to test yourself at the end of each page and easily see where yo need to improve."

"It is life saving... I am passing IB because of this site!"

Basic (limited access) subscriptions are FREE. Check them out at:

The triple bottom line

 ATL Activity 11 - Video Review

 Review your understanding of operations management strategies and practices for sustainability by watching this short video. Remember that the model is essentially about providing businesses with new perspective on the rationale for integrating practices for sustainability based on the three pillars of sustainability.

The video transcript, which might be useful to share with students for their revision notes, is included below:

The triple bottom line (TBL or 3BL) is a concept that is used a lot when speaking about sustainable development, and particularly sustainability in business. John Elkington, a global authority on corporate responsibility and sustainability coined the phrase in a book in 1997. His argument was that the methods by which companies measure value should include not only a financial bottom line (profit or loss), but a social and environmental one as well. The concept has evolved into one that’s often described as three overlapping circles. You’ve probably seen this image before. Sustainability is typically defined as the place where economy, social realities and environmental health overlap.

The concept of the triple bottom line mainstreamed the idea of sustainability as including people, planet AND profit. It helped business to understand that long-term sustainability of an organization required more than just financial equity. It also helped to clarify that when businesses were considering what sustainability meant for them, it didn’t mean they had to give up the notion of financial success.

But this overlapping circles image of the triple bottom line can convey a lot more. The circles are all the same size. Does this indicate that the economy is the same relative size, or value, as the other two circles, which deal with society and the environment? Can we trade say “2 social and 3 environment for 5 economy” as long as we stay in the overlapping bit in the middle (sustainability)?

Science tells us that, left to its own devices, the planet operates in a balanced way. We call this the cycles of nature and they are powered by energy from the sun. Science also tells us that matter is not created or destroyed, while laws of thermodynamics tell us that everything tends towards dispersal (principle of entropy). Because plant cells are, for all intents and purposes, the only cells that can produce structure from energy, photosynthesis is the process by which matter is structured on our planet. This is why we say that photosynthesis pays the bills. Without it, creation of structure from energy would not occur, and entropy could rule the day.

How does this help us understand the triple bottom line?

Plant cells belong to the environment circle of the triple bottom line. If plant cells are the original creators of structure, then this is the circle on which everything else depends, or in which everything is embedded. Everything comes from nature at some point. Society, which is related to the social circle of the triple bottom line, exists within the environment. And economy is a by-product of society. Instead of three overlapping circles, we have three nested circles, where the economy is a wholly owned subsidiary of the environment.

To achieve sustainability, we need to comply with social and environmental conditions: meet human needs within ecological constraints. Does this mean that business has to put financial gain last? Of course not! But economic decisions are part of a strategy to make more money while getting closer to social and ecological sustainability. The economy is a means to an end. Not the end itself.

The triple bottom line model is also related to ethical objectives and corporate social responsibility (CSR). Read more about ethical objectives and CSR in Unit 1.3 by clicking the link here.

Key terms
  • Ecological sustainability (or environmental sustainability) refers to the responsibility of individuals and societies to conserve natural resources and protect the planet in order to support the social and economic wellbeing of the current and future generations.
  • Economic sustainability is about using resources, both natural and manufactured, efficiently and responsibly. It is able encouraging businesses to focus their strategies on long-term rather than short-term profitability targets, and the long-term consequences of economic activities.
  • Social sustainability focuses on the extent to which an organization or economy can meet the needs of the current generation without jeopardising the needs of future generations.
  • The triple bottom line refers to the three 3Ps of sustainability: Social sustainability (People), Ecological sustainability (Planet), and Economic sustainability (Profit).

Return to the Unit 5.1 - The role of operations management homepage

Return to the Unit 5 - Operations management homepage