This article discusses sustainability and triple bottom line in business. It explains the different types of capital and the six phases of corporate sustainability. The article emphasizes the importance of organizations in initiating sustainable growth practices for the economy and society.
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Running Head: BUSINESS PLANET AND SOCIETY BUSINESS PLANET AND SOCIETY Students ID: Name of the University Authors Note
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2BUSINESS PLANET AND SOCIETY Introduction Sustainability is not a new concept to me but it is associated to the urban establishment in different countries. After studying this course, I realized that my horizon requires to be shifted to international level. It is evident that sustainability can be associated to several things that are not only development of urban areas but also the business and the changing life trends. The way we live in can highly influence he planet as well as it can influence our successors. However, I am learning from my studies and the existing scenario in the society that present world is highly complicated in the sense that it is consistently in a position of change. Therefore, not only the world is changing itself but the communities and the environment is growing and establishing itself. Discussion Consistentfluctuationinbetween thesetwo kindsisinfluencingallthetypesof organization specifically business. I can say that in this context, that owing to the consistent change in the existing world, shareholders, stakeholders are expecting information about the financial, operational and investing activities of the business (Ozanne et al., 2016). In this aspect, business are either flourishing or failing. Therefore, I can say that establishing sustainability along with the measurement and reporting can be challenging. This is because, sustainability do not deal with the past rather it emphasizes on the future. An organization that desires for proper sustainability needs to take proper action and need to have effective understanding of that is require (Kucukvar, Egilmez & Tatari, 2014). The major concept of evaluating and reporting the factors of sustainability is called triple bottom line. In the mid period of 1900, John Ellington enacted to measure the elements of sustainability with different structure for evaluating the
3BUSINESS PLANET AND SOCIETY performance of business in the United States that was known as Triple bottom line. I have learned from various sources that I studies during my course that triple bottom line is an accounting process that integrates three major dimensions of accounting structure, namely social, environmental and financial (O’Neill, Sohal & Teng, 2016). This is different from the traditional form of reporting framework as it is inclusive of the ecological and social measures. Triple bottom over the past 30 years has been evaluated through several steps to understand the concept and has been used to develop our sustainability in business. This concept has also been used to understand the influence it has on us, the society we live in, economic and well as future (Bruton et al., 2015). Therefore, as our understanding and knowledge about the things consistently grows, we start seeing things in an important way and things in a way that is closely related to our environment. This method has increasingly helped in accomplishment and healthy environment of the company through its conventions form of bottom line. For example, companies such as Better world books. Green energy corp. and Patagonia utilizes the triple bottom line reporting for measuring sustainability of business performance for their organization. However, in the recent 3-5 years, I have learnt that a business organization is required to upgrade and increase its stock capital. Capital signifies machineries, factories, equipments and factories that are usually utilized to manufacture other goods and facilities. There are various types of capital that is used to measure the stocks of an economy, in this physical capital is of two types such as, fixed capital and capital of circulation (Benn, Edwards & Williams, 2014). There are six various types of capital that I have learned are extensively used in maintaining the sustainability of business. The types of capitals are internal economic capital, including available finds, debt and equity finance and the non-economical capital (Touboulic & Walker, 2015). Second, one is the external financial capital that focuses on the influence of the organization on
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4BUSINESS PLANET AND SOCIETY the economic and non-economic capital. For instance, they are new factory that could lower real estate values. Third types of capital are the natural form of capital, which is inclusive of all the natural resources we are dependent on like regulation of climate. Fourthly, it is the human capital consisting of knowledge, expertise, experience, wellbeing, attitude, and motivation of individuals (Klewitz & Hansen, 2015). Fifth type of capital is the social and relationship capital that is inclusive of team members, networks, groups and employees working together along with collective intellectual capital. The last one is the construct form of capital that contains materialistic things, processes, methods and ecosystem that are cultivated by the humans. This indicates that the developing field of sustainability that transforms in to the ideals of sustainability for all the shareholders into various points of action that are searching for a way to increase the different forms of capital (Higgins & Coffey, 2016). For examples, environmental consultancy has developed methods for keeping their prices on the natural capital. This is because, carbon pricing trading schemes have been growing over the time. On the contrary, it has been found that there are six major phases while developing towards the sustainability of organization. In this context, Dunphy, Griffiths & Benn (2003) outlined six phases in the establishment of corporate sustainability such as rejection, non response, capability, effectiveness, strategic proactively and the sustainable organization. Conclusion Therefore, I can say that it is evident for all the organization to play a crucial role in initializing sustainable growth practices for the wellbeing of the economy and society. In this, I realized that organization often take part in the dualistic role behaving as both users and in
5BUSINESS PLANET AND SOCIETY certain cases role of producers. The organization industry is a substantial consumer for materials and user related facilities that move towards sustainability.
6BUSINESS PLANET AND SOCIETY Reference list Benn, S., Edwards, M., & Williams, T. (2014).Organizational change for corporate sustainability. Abingdon: Routledge. Bruton, G., Khavul, S., Siegel, D., & Wright, M. (2015). New financial alternatives in seedingentrepreneurship:Microfinance,crowdfunding,andpeer‐to‐peer innovations.Entrepreneurship Theory and Practice,39(1), 9-26. Higgins, C., & Coffey, B. (2016). Improving how sustainability reports drive change: a critical discourse analysis.Journal of cleaner production,136, 18-29. Klewitz, J., & Hansen, E. G. (2014). Sustainability-oriented innovation of SMEs: a systematic review.Journal of cleaner production,65, 57-75. Kucukvar, M., Egilmez, G., & Tatari, O. (2014). Sustainability assessment of US final consumptionandinvestments:triple-bottom-lineinput–outputanalysis.Journalofcleaner production,81, 234-243. O’Neill, P., Sohal, A., & Teng, C. W. (2016). Quality management approaches and their impactonfirms׳financialperformance–AnAustralianstudy.InternationalJournalof Production Economics,171, 381-393. Ozanne, L. K., Phipps, M., Weaver, T., Carrington, M., Luchs, M., Catlin, J., ... & Williams, J. (2016). Managing the tensions at the intersection of the triple bottom line: a paradox theory approach to sustainability management.Journal of Public Policy & Marketing,35(2), 249-261.
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7BUSINESS PLANET AND SOCIETY Touboulic, A., & Walker, H. (2015). Theories in sustainable supply chain management: a structuredliteraturereview.InternationalJournalofPhysicalDistribution&Logistics Management,45(1/2), 16-42.