By Jack D. Cichy
Dec. 15, 2011
There are several definitions of Sustainability as it relates to Sustainable Business Practices (SBP). For the sake of discussion, let us focus on the following definition - Sustainability involves protecting and enhancing long-term cultural, ecological and economic health/vitality. In addition to Financial Capital, two aspects of SBP are Social Capital and Environmental Capital or what is commonly called the Triple Bottom Line (TBL) or three legged stool. The TBL involves a belief that environmental stewardship of the (PLANET) and social capital (PEOPLE) are just as important as black ink (PROFIT) on the bottom line. In essence, Triple Bottom Line Sustainable Business Practices focus on reduced consumption by functioning to consume natural resources at a lower rate than the natural reproduction rate, or at a rate below the development of substitutes while recycling and reusing. SBP attempt to minimize or eliminate activities that pollute or degrade the environment.
Beyond corporate PROFIT, there are many ways to gauge world health and sustainability problems from a CSR (PEOPLE) and PLANET perspective. These measures include population growth, climate change, deforestation, marine and environment degradation, persistent pollutants in the environment, loss of biological diversity and stratospheric ozone depletion. The only P for most companies is financial based or Performance. Performance includes sales growth, return on equity and profitability. The Three Legged Stool (TBL) involves a stakeholder focus within two additional Ps. The second is PEOPLE or Social Capital. Social Capital is the result of the business engaging the community to determine reciprocally beneficial win-win solutions to common problems. The third P is the PLANET or environmental. A PLANET focus is centered on protecting the environment and assessing environmental administration programs to help understand every stage of product life cycles.
An aspect of the TBL focus on PEOPLE involves Corporate Social Responsibility (CSR). CSR is the equitable, fair and humane treatment of human beings via focusing on a company’s external ethical behaviors. Internally, a company seeks to be known as a ‘Chosen Employer’ or ‘Employer of Choice’. Typically, a PLANET focus will result in benefits to PEOPLE.
According to Pennsylvania based B Lab, the Certified B Corporation designation uses the power of business to resolve social and environmental problems. B Corps focus on a new kind of corporate organization that blends financial capital creation with nonprofit social consciousness. B Corporations are required to modify their bylaws to be considerate of the business impact of company decisions on all stakeholders including suppliers, consumers and employees, including the environment and the ‘common good’. B Corporations meet broad and transparent social and environmental performance standards; they possess higher legal accountability standards; and they do good while making it good business.