Business Responsibility in Managing Social, Economic, and Environmental Impacts
In today’s world, the trend toward environmental and sustainable management of any enterprise is constantly growing. In this regard, implementing mechanisms by which the social, economic, and environmental impacts can be tracked is vital for business. Enterprises are obliged to organize their work sustainably to consider their impact on society and nature.
Due to this, the business will be able to achieve better indicators of the levels of public trust. Companies that pay significant attention to care measures about their impact on social and environmental aspects are more likely to achieve their organizational goals (Hawken, 2010). In the long term, their effectiveness will be at the highest level since they consider the inevitable consequences of their actions.
Evaluating the Business Value and Challenges of the Triple Bottom Line (TBL)
Using the TBL structure can bring several benefits to the business. First, it has a positive effect on sustainable development through the coordination of all actions with stakeholders (Hawken, 2010). Thus, all aspects of sustainability, such as social, economic, and environmental, will be in balance. This will enable companies to organize their future development strategies better, taking into account the impact on the environment.
Societal Benefits of TBL and Potential Consequences of Its Absence
Different companies with the TBL structure can bring various benefits to society, which are reflected in their concern for the future. For example, organizations guided by this framework consider the consequences of their actions and how they can say in the future, not only on their organization but also on society (Hawken, 2010). This brings a significant social benefit since, in this case, firms do not harm people because of the thoughtfulness of their strategic steps.
Such an approach can create a more developed, sustainable society where business is interested in the well-being of people and not just profit. On the other hand, if TBL were not a common practice, society might experience the consequences of aggressive growth of companies, such as a polluted environment. In the long term, the absence of TBL could lead to a significant deterioration in the well-being of people because their comfort would not be taken care of.
Reference
Hawken, P. (2010). The ecology of commerce revised edition: A declaration of sustainability. Harper Business.