Corporate Social Responsibility and Triple Bottom Line: A Case Study of Alghanim Industries Kuwait

In this document we will discuss about Corporate Social Responsibility and Triple Bottom Line and below are the summary points of this document:- The report discusses the concept of Triple Bottom Line (TBL) in management, emphasizing economic, social, and environmental goals. It focuses on the Corporate Social Responsibility (CSR) of Alghanim Industries Kuwait, a multinational company operating in 40 countries. The report explores how Alghanim Industries has adopted the TBL framework and provides examples of their social, economic and environmental responsibility efforts.

Running head: MANAGEMENT
Corporate Social Responsibility
Name of the Student:
Name of the University:
Author Note:

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Executive Summary:
The report focuses on providing a discussion on management in the context of Triple Bottom
Line, a framework that takes into account the fact that organization in addition to enhancing its
profitability should also become socially, economically and environmentally responsible. The
report also portrays a discussion on Corporate Social Responsibility (CSR) of a chosen
organization in regard to people, profit and planet. The company chosen for this particular report
is Alghanim Industries Kuwait, a multinational company with operations across 40 countries.
The report puts across an overview on the adoption of the Triple Bottom Line framework of this
particular company.

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Table of Contents
Introduction:....................................................................................................................................3
Concept of Triple Bottom Line (TBL) in Encapsulating the Economic, Social and Environmental
Goals................................................................................................................................................3
3Ps- People, Profit and Planet.........................................................................................................4
Example of the Organization in the Context of TBL......................................................................5
Conclusion:......................................................................................................................................6
References:......................................................................................................................................7

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Introduction:
The aim of the report is to provide an insight into Triple Bottom Line in context of a
multinational company in Kuwait, Alghanim Industries. Triple Bottom Line represents a
framework that puts forward the aspect that an organization in addition to having a target of
enhancing profit should also focus on economic, social and environment goals. The report thus
puts across a discussion on the corporate social responsibility in regard to 3Ps, people, profit and
planet. Thus, the report also tries to portray how an analysis of economic, social and
environmental goals responsibilities haven helped the organization in becoming more
responsible not only socially but also environmentally. The report also portrays two examples
that the company has undertaken in regard to the social, economic and environmental
responsibility.
Concept of Triple Bottom Line (TBL) in Encapsulating the Economic, Social and
Environmental Goals
The Triple Bottom Line (TBL) refers to the framework that helps in broadening the focus
of the business from sole profitability towards inclusion of the social and the environmental
considerations (Elkington 2013). In other words, Triple Bottom Line (TBL) puts across the
measurement of the extent to which the company is inclined towards generating an economic
value, environmental impact and social responsibility. The term Triple Bottom Line was put
across by John Elkington. One of the key challenges faced by TBL lay in hurdles faced in the
measurement of the social and the environmental bottom lines that ensured the need for
evaluation of the three varied accounts depending on the merit (Savitz 2013).

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Breakdown of Triple Bottom Line:
To begin with, it can be said that the bottom line of a particular company refers to the
income generated through profits. TBL described by Elkington intends in advancing
sustainability goals within the business practices where the focus of companies lies beyond
profits in including the social and environmental issues for ensuring the measurement of the
complete cost of business. It is to be noted that the CEO, investment manager or the individual
investor interested in pursuing TBL should consider the social and the environmental areas in
addition to the economic bottom line while undertaking investment and business decisions. In
addition, the deployment resources like money and human labor towards a project or
environment contributes to three goals while at the same time keeps a closer eye on profits at the
expense of others. It has been found that companies undergo certain repercussions due to the
ignorance of the TBL while paying increased attention to profits. These include exploitation of
labor, destruction of the rainforest and the damage caused to ozone layer. Hence, in a way, it can
be said that TBL represented an idea for the running of organization in the manner that helps in
earning profits while concentrate on the betterment of the people in creation of healthy planet.
3Ps- People, Profit and Planet
An organization must face challenges in maximization of the financial returns while
deviating towards ensuring good for the environment and the people. For instance, the best
method for maximization of profit in any industry lies in not only hiring least expensive labor but
also involves the disposal of the waste in a cheaper manner. Although it will result in the higher
profits but with give rise to depressed working and living conditions of labors that damages the
people and the natural living environment. Although such practices have been socially

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responsible in past but are not preferred in the present times. This is because, nowadays the
consumers have a preference for companies where the workers are treated properly and provided
a standard wage and the company portray immense respect to environment in regard to the
production process. Thus, consumers’ wants companies that remain transparent about its
practices and considerate to shareholders.
Addition of ‘People’ aspect to social responsibility of corporate bottom line not only
shifted the focus towards fair treatment of the employees along with offsite labor but at the
same time implied enactment of favorable practices within communities where companies
conducts business (Kolk 2016). The ‘Planet’ aspect of triple bottom line refers to implementation
of sustainable practices while reducing the environmental impact (Alhaddi 2015). The steps
include undertaking of the recycling programs and the manufacturing of the sustainable
materials. The ‘Profit’ consideration refers to the incorporation of social and the environmental
responsibility having positive impact on financial bottom line of company thus leading to the
profit generation (Lin-Hi and Müller 2013).
Example of the Organization in the Context of TBL
Alghanim Industries is one of the largest and the privately owned companies in Kuwait
with operations across 40 countries (alghanim.com 2019). It represents multibillion-dollar
conglomerate comprising of 30 businesses that also provides loans and fund projects for the
Middle East and the non- UAE. The firm generates close to $2.5 billion revenues in the year
2009 and has stronger holds in Middle East, Turkey and India and deals over close to 300
agencies and brands. In regard to the TBL framework, the country’s adoption of the 3Ps is as
follows :

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Planet:
 The principles of the shared responsibility and undertaken initiatives in strengthening
communities
 The company also undertakes projects by working with partners across the world with the
aim of accomplishing a better sustainable future.
People
 Provides ongoing financial and moral support to the lower income female entrepreneurs
through sponsorship(alghanim.com 2019)
 Undertakes expansion of the long standing partnerships with the local and the regional
entities in supporting the aspiring entrepreneurs
Profit:
 Plans for undertaking investments in Asia after fall in the asset prices during global
financial crisis
 Plans for further expansions through newer investments in Turkey where its
subsidiary which is also the manufacturer of the insulation materials has already made
a spending of close to 200 million dollars.
Conclusion:
On a concluding note, one can say that Triple Bottom Line (TBL) enables an
organization to be economically responsible in addition to being environmentally and socially
responsible. The report provided an insight to Alghanim Industries, Kuwait in accomplishing the
3Ps puts forward by TBL and its accomplishments in being socially responsible.

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References:
alghanim.com 2019. [online] Available at https://www.alghanim.com/ about-us/[Accessed 6
Mar. 2019].
alghanim.com 2019. [online] Available at: https://www.alghanim.com/news/2018/supports-low-
income-women.aspx[Accessed 6 Mar. 2019].
Alhaddi, H., 2015. Triple bottom line and sustainability: A literature review. Business and
Management Studies, 1(2), pp.6-10.
Elkington, J., 2013. Enter the triple bottom line. In The triple bottom line (pp. 23-38). Routledge.
Henriques, A. and Richardson, J. eds., 2013. The triple bottom line: Does it all add up.
Routledge.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1), pp.23-34.
Lin-Hi, N. and Müller, K., 2013. The CSR bottom line: Preventing corporate social
irresponsibility. Journal of Business Research, 66(10), pp.1928-1936.
Savitz, A., 2013. The triple bottom line: how today's best-run companies are achieving
economic, social and environmental success-and how you can too. John Wiley & Sons.

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