Corporate Social Responsibility

The report aims at providing an insight into management in context of how the triple bottom line encapsulates the aspect that the corporations in having social, economic and environmental goals. The report also portrays how this has an influence on the CSR reporting of various corporations that is commonly referred as the 3Ps, People, Planet and Profits. The report also provides a discussion on the social, economic and the environmental goals undertaken by an organization along with an analysis of how the responsibilities have enabled organization in becoming socially responsible. The report also discusses about two examples each of which is connected to the social, environmental and responsibility towards the environment.

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

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Executive Summary:
The aim of the report lies in providing an overview of management in perspective of Triple
Bottom Line that captures the aspect of the organizations in having economic, social and
environmental goals. The report also portrays the Corporate Social Responsibility (CSR) of the
various corporations in reference to the People, Planet and the Profits. The report also puts
forward discussion on Patagonia, a clothing organization, had adopted the TBL model in
becoming socially and environmentally responsible.

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Table of Contents
Introduction:....................................................................................................................................3
Triple Bottom Line (TBL)...............................................................................................................3
Example of an Organization in Context of TBL.............................................................................6
Conclusion:......................................................................................................................................7
References:......................................................................................................................................8

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Introduction:
The report aims at providing an insight into management in context of how the triple
bottom line encapsulates the aspect that the corporations in having social, economic and
environmental goals. The report also portrays how this has an influence on the CSR reporting of
various corporations that is commonly referred as the 3Ps, People, Planet and Profits. The report
also provides a discussion on the social, economic and the environmental goals undertaken by an
organization along with an analysis of how the responsibilities have enabled organization in
becoming socially responsible. The report also discusses about two examples each of which is
connected to the social, environmental and responsibility towards the environment.
Triple Bottom Line (TBL)
The Triple Bottom Line however represented a framework that broadened focus of
business from solely the financial bottom line towards the inclusion of the environmental and the
social considerations (Elkington 2013). In fact, the TBL puts forward a measurement of a
company’s extent towards social responsibility, environmental impact and economic value
(Savitz 2013). The phrase was coined by John Elkington and the key challenge of TBL lay in the
hurdles for measuring environmental and social bottom lines that necessitated the evaluation of
the three different accounts evaluated based on the merit.
Breakdown of the Triple Bottom Line

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Generally, the bottom line of the company represents the net income statement which is
represented by the profits. Elkington’s TBL intends to advance the sustainability goals in the
business practices where focus of the companies extends beyond the profits for including the
environmental and the social issues for measuring complete cost of doing the business
(Henriques and Richardson 2013). A CEO, individual investor or an investment manager who
want to pursue TBL must consider the environmental and social areas in addition to economic
bottom line while undertaking business and investing decisions. Thus, deployment of other
resources such as the human labor and money to an investment or project contribute to the three
goals or focuses on the profit at expense of the others. Certain repercussions that occurred as a
result of the ignorance of TBL in name of the profits include the exploitation of the labor,
damage of the ozone layer and destruction of rainforest. Thus, in effect, it can be said that TBL
represents idea for running an organization in a manner that not only helps in earning of financial
profits but at the same time leads towards betterment lives of people thereby helping in the
creation of a healthier planet.
People, Planet and Profits
However, it could be challenging for maximizing financial returns while doing good for
people and the environment. For example, the best means of maximizing profit for clothing
manufacture lies in hiring the least expensive labor and at the same time disposing the

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manufacturing waste in the cheapest manner. This might although result in higher profits for the
clothing firm but results in miserable living and working conditions of the labors thereby
damaging the people and natural environment who lives in it. These practices although socially
acceptable in the past but not any longer. In the present times, a consumer prefers clothing from
companies where the workers receives a living wage and that also pays respect to the
environment in production process. In other words, nowadays, consumers want their companies
to remain transparent about the practices and remain considerate towards the stakeholders.
Thus, adding the ‘people’ aspect to the social responsibility to the corporate bottom line
not only helped in shifting focus towards the fair treatment of employees and the off-site labor
but also implies the enactment of the favorable practices within the communities where the
companies conducts the business (Kolk 2016). However, the ‘planet’ aspect of the triple bottom
line refers to the implementation of the sustainable practices along with reduction of the
environmental impact (Alhaddi 2015). The measures include undertaking recycling programs
and manufacturing only the sustainable materials. When considering the ‘profit’, it can be said
that addition of environmental and social responsibility has a positive impact on the financial
bottom line of the company thereby leading to the generation of profits (Lin-Hi and Müller
2013).

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Example of an Organization in Context of TBL
The organization chosen here is Patagonia that is an American clothing firm that sold and
marketed outdoor clothing and was found by Yvon Chouinard in the year 1973 (patagonia.com
2019). The company had a humble beginning and had a focus on environmental protection. The
simple mission of the company lay in building best product by causing no harm and using the
business for implementing solutions towards environmental crisis. The company used the TBL
model and became socially responsible through adoption of the 3Ps. This is as follows
(patagonia.com, 2019):
Planet: Patagonia had the aim of producing best clothing without causing any environmental
harm. It began with the materials that were used in the following manner:
 In the year 1993, the company started using the fleece derived from the recycled plastics
of the soda bottles
 In the year 2015, when the company found that a wool supplier belonging to South
America treated the sheep in an inhuman manner, Patagonia severed all terms with the
supplier
People: From the very beginning Patagonia had the aim of hiring environment conscious and
independent people and thereby provides better treatment as follows:
 The company has ensured work life balance as the hallmark of the company

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 The company put across Child Development Centre and allowed the employees in setting
their work hours where the only parameters lay in closing down of the Child
Development Center by 5 pm and all employees need to empty the office building by 8
P.M.
Profit: Patagonia represented a great success story and in the last decade, it quadrupled the
revenues and profits. This is primarily done in the following manner:
 By flying coach so that the money gets directed to the environmental causes
 By taking out little money from the business
Conclusion:
On a concluding note, it can be said that the Triple Bottom Line helps an organization in
not only economically responsible but also socially and environmentally responsible. The report
also portrays how Patagonia, the clothing organization follows the TBL and successfully
accomplishes the 3Ps thereby becoming socially responsible.

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References:
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.
patagonia.com (2019). [online] Available at: https://www.patagonia.com/company-info.html
[Accessed 2 Mar. 2019].
patagonia.com (2019). [online] Available at: https://www.patagonia.com/corporate-
responsibility.html [Accessed 2 Mar. 2019].
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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