The Triple Bottomline

To sustain the growth momentum of any business organization, it must be mindful of its presence in the communities in which it exists, ever conscious of its impact on society and the environment.

The Triple Bottomline measures not only a corporation’s profitability, but also the benefits reaped from its operations as a cog in the wheel of society and an agent of nation building, as well as a steward of the environment. 

1.       Efficient Output

Efficient output measures whether the organization has made the most of its investments, not only whether its operations are profitable or not. An organization may be profitable but not efficient, so that in the final analysis, it is unprofitable as well. All resources must be efficiently utilized to yield desired outcomes for shareholders and stakeholders. This can be achieved by rationalizing inventory systems, procurement processes and value chain analysis. A streamlined value chain, as well as disintermediation in which middlemen, who do not add value to goods and services are removed from the value chain, is a good measure for contributing to operations efficiency.

2.       Corporate Social Responsibility

A business organization is only as good as the society or societies in which it exists. It does not exist in a vacuum. Whether this reality is acknowledged or not, the corporation is part of society and its operations will always have an impact on the former. It is to the corporation’s advantage to nurture and care for the society in which it operates because with a better educated, healthy, and productive society, the corporation can enjoy a larger, high quality market, especially if it is in the business of high end products. By promoting national identity in arts and education programs, it teaches members of society to appreciate and therefore patronize Filipino businesses, thus reversing the colonial mentality that has had the nation in its grip for the longest time. By being active in improving the lives of Filipinos (or any other citizen for that matter), through home building, scholarship and education, leadership, artistic, technological, healthcare, and other initiatives, with a genuine and sincere interest in the citizens’ welfare, the organization is building “brand equity.” “Brand equity” is an intangible asset, it is the positive connotations associated with a brand, such as trustworthiness, integrity, and high levels of quality service and goods.

3.       Sustainability (Environmental Impact)

It has been said, we consume our natural resources as if we have another planet to go to in case the one we are living in implodes. It is an oft ignored fact that there is no Planet B, by the way we have been careless in the way we produce and dispose of our waste, raze forests, emit greenhouse gases into the air, pollute our waters and endanger the delicate balance of nature in general. We have neglected to take into account the fact that without a healthy planet, there will be no healthy inhabitants and without healthy inhabitants, we would not have a market for our products and services. It is in our best interest to care for the only planet we have, for the sake of future generations. Building things smaller, bigger, faster, taller would be for naught if our children and our children’s children cannot enjoy them because there is no more planet to live in. Each small step in minimizing the corporation’s environmental footprint will lead to significant gains if undertaken by all.