Impact of Sustainability on Organizations: A Detailed Analysis

This essay delves into the concept of sustainability within organizational contexts, emphasizing the triple bottom line (TBL) approach, which encompasses social, environmental, and economic factors. The student analyzes the TBL framework, highlighting its role in measuring corporate social responsibility and environmental impact. The essay explores the application of TBL in various organizations, such as Axion Structural Innovations LLC and The LEGO Group, demonstrating how companies are integrating sustainability into their business practices. It examines the economic, environmental, and social considerations of sustainability, discussing how these factors influence brand image, process design, and overall organizational performance. The importance of stakeholder collaboration, long-term planning, and leadership in achieving sustainability goals is also emphasized. The essay concludes by underscoring the role of organizations in contributing to societal and community development through various initiatives and practices.

Running head: SUSTAINABLITY IN ORGANIZATIONS
SUSTAINABLITY IN ORGANIZATIONS
Name of the student
Name of the university
Author note

1SUSTAINABLITY IN ORGANIZATIONS
Introduction
Sustenance in organizations assist the same in developing the operations while adhering
to the sustenance and expansion related objectives. The key modifications that are planned by the
organizations are related to the different aspects of change in the organizational contexts. It has
been noted that the triple bottom line approach in the organizations focuses on three parts
relating to social, environmental and economic sustainability in the operations of the venture1.
The initiation of different sustenance related activities assists an organization in improving the
efficiency of the operations in adherence to the sustenance related demand of the same. The
adherence to the triple bottom line approach assists an organization in developing the business
value of the same while operating in different markets.
The sustenance related factors in an organization assists the same in improving the value
of the propositions and the net worth of the concerned organization in the different markets. In
this relation, I believe that the organizations must take steps to finalize an internal and external
audit of the operations in order to empower the activities of the same. I presume that the major
long term objective of an organization is reliant on the aspects of sustenance which would assist
the same in supporting the mass growth and expansion of the activities in the different markets
through creation of value. It has been researched that the culture and the values of an
organization influences the operations of the same while developing the processes based on the
considerations related to sustenance2. The different changes that are undertaken by the
1 Law, Derek G, "From Plimsoll Line To Triple Bottom Line: Adding Value Through Partnership" (2015)
28(1/2) The Bottom Line
2 Bohmholdt, Andrea, "Evaluating The Triple Bottom Line Using Sustainable Return On Investment"
(2014) 24(4) Remediation Journal

2SUSTAINABLITY IN ORGANIZATIONS
organization assist the same in developing the propositions while operating in different markets.
I believe that the culture, the values and the leadership approach affects the potentials of the
organization in improving the processes while developing the potentials of the same relating to
the triple bottom line approach. The triple bottom line approach provides the organization with a
framework for enhancing the rate of operations that are undertaken by the same for increasing
the value of the propositions.
Concept of triple bottom line
From analyzing the concept of Triple bottom line that is widely used in almost all
organizations, I have gathered that this is an accounting framework that has three parts including
social, financial and environmental aspects. From analyzing such concept I have also observed
that some companies have implemented the Triple Bottom Line framework so that it can
facilitate them in analyzing their performance in a wider perspective for generating increased
business value. Triple Bottom Line or TBL framework can therefore be understood as a theory
which recommends that organizations require increasing their focus on environmental as well as
social concerns just the manner in which they focus on attaining profits from businesses3. I have
evaluated such concept of TBL and recognized that TBL framework is employed in the
companies for measuring an organization’s commitment level towards corporate social
responsibility as well as the impact of its business on the environment with time. Through
observing the contribution of TBL concept in finance, I have attained an idea than TBL
framework implementation in the companies is intended to increase their profit margins.
3 Ahi, Payman and Cory Searcy, "Assessing Sustainability In The Supply Chain: A Triple
Bottom Line Approach" (2015) 39(10-11) Applied Mathematical Modelling

3SUSTAINABLITY IN ORGANIZATIONS
Moreover, I attained an understanding regarding the fact that TBL framework improves
attainment of the goal of sustainability within the business practices in which the organizations
look beyond profits in evaluating the environmental and social concerns that measures the
overall cost of conducting business4.
I also have a viewpoint that TBL concept analyses whether an organization focuses on
just finances and whether it interacts socially through its business activities. Focusing on such
aspect I can represent a point of view that as per the TBL theory the company’s focus on
working through abiding by the three bottom line including profit, people and environment. I
assume that profit acts as the most important traditional measure of business profit that can be
indicated in the profit and loss account. This concept also takes into consideration analyzing the
extent to which the businesses are socially responsible al through their business operations and
also evaluates the extent to which the company remains environmentally response. I also believe
that through taking into consideration the explained three interrelated aspects of TBL reporting,
the companies can implementing this as a relevant tool that cab facilitate them in attaining the
sustainability objectives. From analyzing the concept of TBL, I have attained an understanding
that there might be several repercussions of not following TBL structure in increasing profits and
instances of such cases might be rainforest destruction, labor exploitation and ozone layer
damage.
I can also explain triple bottom line as a concept that cab facilitate in supporting the
decision making process of the companies all over the world. Moreover, I have also realized that
4 Alhaddi, Hanan, "Triple Bottom Line And Sustainability: A Literature Review" (2015)
1(2) Business and Management Studies

4SUSTAINABLITY IN ORGANIZATIONS
in the current years more leaders have started to have a sustainability based thinking focused on
which the TBL approach serves as an expanded form of traditional accounting framework in
including two or more than other performance areas that includes the social as well as the
environmental impacts of the organizations. I have also gathered that the triple bottom line has
confirmed the ways in which companies operate their businesses through decreasing risks along
with dealing with climate change impacts that requires a lot of money and time. From analyzing
an MIT study I have gathered an understanding that through abiding by the TBL framework, the
companies are observed to treat sustainability seriously through setting concrete goals of
attaining profits from sustainable business activities5. In addition, I also believe that the success
as well as profitability of the corporate sustainability approaches relies in a simple aspect that
considers the way in which the skilled employees of a company employs its specialized
knowledge of accounting, environmental science and leadership skills. The TBL approach
implementation in companies also enhances the ability of employ systems thinking to make
effective strategic business decisions.
Application of triple bottom line in the organizational contexts
From observing certain instances of the companies that consider implementing the TBL
approach, I have realized that the current corporate world is greatly conscious of its social as
well as environmental accountability. Considering the advantages of implementing TBL
structure within the businesses, I can explain that almost all the companies globally are
implementing ad improving their social programs. Consumers expect the businesses to remain
5 McWilliams, Abagail et al, "Strategic Decision Making For The Triple Bottom Line" (2014)
25(3) Business Strategy and the Environment

5SUSTAINABLITY IN ORGANIZATIONS
transparent regarding their organizational conducts and also remain considerate on all its
stakeholders. I can also explain triple bottom line as a concept that cab facilitate in supporting
the decision making process of the companies all over the world. Focused on such aspects, I have
also attained a realization that consumers of a company are generally willing to pay a
considerable amount for the organizations offerings if it indicates that the employees are paid a
living wage and the business surrounding is take care of within the production process. I have
also revealed that there are companies of all types and sizes which are publically as well as
privately held subscribe to the concept of triple bottom line and such instances of the companies
applying TBL on their business operations are indicated below:
 Axion Structural Innovations LLC: I have observed that this company is renowned for
its commitment to sustainability based on implementing the triple bottom line approach.
Considering such framework, the company is committed towards making its business
environmentally sustainable through building railroad pilings and ties by means of
employing recycled plastic bottles along with industrial wastes rather than employing
standard materials like steel, wood and cement6.
 The LEGO Group: I have analyzed that this publically held company has entered into
partnerships with companies such as certain non-government organizations and world
wildlife fund. As per my observation this company has made increased commitment in
6 Sarkis, Joseph and Dileep G. Dhavale, "Supplier Selection For Sustainable Operations: A
Triple-Bottom-Line Approach Using A Bayesian Framework" (2015) 166 International Journal
of Production Economics

6SUSTAINABLITY IN ORGANIZATIONS
decreasing its carbon footprint as well as working in the direction of attaining 100%
renewable energy capacity at the end of 2030.
Therefore, the application of the triple bottom line approach in the organizational context
assists in developing the potential of the same while improving the line of value propositions. It
has been noted that the CSR activities that are commenced by the ventures are supported
through the application of the triple bottom line approach of business sustainability7. I believe
that the organizations hold a strong coalition between the stakeholders with the aim of achieving
the sustainability goals. On the other hand, the development of the processes and the manner in
which the same might be applied in the systems would assist the ventures in maintaining the
efficiency of the operations in adherence to the demand of the customers. The application of the
sustainability approach in the organizations assist the same in maintaining the efficiency of the
operations in adherence to the demand of the customers.
The planning and development of the processes are reliant on the collaborative
functioning of the stakeholders. I believe collaboration among the stakeholders are reliant on the
effective long term planning mechanisms of an organization. On the other hand, as per a
research it was observed that the development of long term objectives of the management are
reliant on the effective leadership controls and monitoring activities8. The process planning and
evaluation of the needs of the stakeholders assist an organization in developing the potentials of
7 Edgeman, Rick, Jacob Eskildsen and Andy Neely, "Translating Triple Top Line Strategy Into Triple
Bottom Line Performance" (2015) 19(1) Measuring Business Excellence
8 Rambaud, Alexandre and Jacques Richard, "The “Triple Depreciation Line” Instead Of The “Triple
Bottom Line”: Towards A Genuine Integrated Reporting" (2015) 33 Critical Perspectives on Accounting

7SUSTAINABLITY IN ORGANIZATIONS
the same relating to CSR. In this relation, I believe that the processes that are planned by the
organizations are related to the economic benefits that would be gained by the same.
It has been registered that the economic stability of an organization assist the same in
influencing innovative culture through strengthening the R&D operations for continuous learning
and improvements9. Again, the environmental concerns that are faced by the organizations assist
the same in improving the processes through adherence to the stringent environmental
regulations. The adherence to the environmental regulations assist an organization in developing
a positive brand image while considering the factors relating to over- consumption of non-
renewable resources. The development of the economic support would assist the ventures in
developing the overall process flows. Moreover, I believe that the economic stability in the
organizations support the same in improving the efficacy of the process design through the
allocation of vivid range of technologies. It might be collected from a research that the
technological innovations in an organizational process support an organization in forging the
different modification in adherence to the changes in the process flow10. The economic stability
of an organization is also determined through the enhanced rate of profitability.
The considerations relating to environmental considerations are the chief factors that
involves the CSR norms of the ventures. On the contrary, the social considerations that are
emphasized by the organizations assist the same in developing the communities and enhancing
9 Rambaud, Alexandre and Jacques Richard, "The “Triple Depreciation Line” Instead Of The “Triple
Bottom Line”: Towards A Genuine Integrated Reporting" (2015) 33 Critical Perspectives on Accounting
10 Law, Derek G, "From Plimsoll Line To Triple Bottom Line: Adding Value Through Partnership"
(2015) 28(1/2) The Bottom Line

8SUSTAINABLITY IN ORGANIZATIONS
the affordability of the communities. The brand image is enhanced through the different
initiatives that are commenced by the same while operating in different markets. Apart from the
environmental and the social factors, the economic factors play a major role in supporting the
expansion and growth related objectives of the venture. The development of the economic
situation of the organization assist the same in maintaining the efficiency of the operations
through facilitating continuous learning initiatives and development of the skills of the
workforce. The enhanced skills of the workforce and the technological developments that are
made by the organizations supports the same in improving the process design. On the other hand,
It has been noted that the enhanced financial strength of an organization represents the
investments that might be undertake by the same11. The enhanced rate of operations of the
venture assist the same in improving the efficiency of the operations while adhering to the long
term objectives of sustenance.
However, I believe that every organization or corporations play a major role in
improving the societies and communities. The social objectives of an organization assist the
same in developing the communities through different charity programs for encouraging and
maximize the involvement of the stakeholders. On the other hand, the development of the social
objectives would support in developing a potential brand image of the same while supporting the
needs of the communities. The social objectives of community development and enhancement of
the brand name would assist the venture in ensuring the efficiency of the activities. In this
relation, the most important factor relating to organizational sustenance, I believe, is related to
11 Edgeman, Rick, Jacob Eskildsen and Andy Neely, "Translating Triple Top Line Strategy Into Triple
Bottom Line Performance" (2015) 19(1) Measuring Business Excellence

9SUSTAINABLITY IN ORGANIZATIONS
enhancement of the processes while maximizing the range of community development and
engagement. Therefore, it might be stated that the different modifications that are considered by
the organizations are related to the long term sustenance while improving the social
environmental and economic factors.
Challenges faced by organizations while implementing the triple bottom line approach
The major challenges that are being faced by the organizations while adhering to the
triple bottom line approach is reliant on financial situation of the same. The lack of suitable
understanding of the capabilities of the organization related to financial resources might affect
the rate of productivity. On the other hand, the lack of sufficient financial resources might affect
the potentials of an organization in implementing costly apparatus. It has been seen that the
decreased CSR related operations of a venture and the incapability to adhere to the tripe bottom
line approach is the result of the lack of financial strength of the venture12.
The lack of financial resources in organizations incapacitates the potentials of
implementing a vivid range of technologies. Lack of technological infusions affects the rate of
productivity and quality related concerns of the venture. On the other hand, the mechanisms that
might be followed by the organizations while adhering to the stringent environmental norms are
affected through the lack of sufficient financial resources. In this relation, I believe that the
enhanced rate of economic capabilities supports not only the potentials of implementing relevant
technologies but also assist in developing the range of ecological sustenance related activities.
The different initiatives that are commenced by the organizations relating to charity and
12 Rambaud, Alexandre and Jacques Richard, "The “Triple Depreciation Line” Instead Of The “Triple
Bottom Line”: Towards A Genuine Integrated Reporting" (2015) 33 Critical Perspectives on Accounting

10SUSTAINABLITY IN ORGANIZATIONS
sponsorships for bringing forth an improvement in the social structure is reliant on the financial
potentials of the same. The development if the financial capabilities by the organizations are
related to the enhanced rate of productivity and profitability of the same.
Again, the brand image and positioning among the target audience in the markets
determine the profitability of a brand. In this relation, the social and ecologically sustainable
measures that are commenced by the organizations assist the same in developing the economic
potentials of the same. In this relation, I believe that the interconnectedness of all three factors
of sustenance assists an organization in developing the process, growth and expansion of the
ventures. However, one major issue that is being faced by an organization while adhering to the
aspects of triple bottom line are reliant on the financial capabilities. The enhanced rate of
financial capabilities assist an organization in balancing the concepts of sustenance. I believe
that the interconnectedness of the sustenance related factors assist an organization in improving
the rate of operations while adhering to the demand of the customers.
It has been noted that the enhanced rate of involvement of the stakeholders in an
organization assists an organization in developing its base of capabilities13. However, it might
also be noted that an enhanced rate of sustenance might be undertaken by organizations through
an evaluation of the market trends and thereby improving the processes of the same.
Enhancement in the process design assists an organization in developing the profitability of the
same while operating in different markets. Therefore, I believe that an organization must take
13 Edgeman, Rick, Jacob Eskildsen and Andy Neely, "Translating Triple Top Line Strategy Into Triple
Bottom Line Performance" (2015) 19(1) Measuring Business Excellence

11SUSTAINABLITY IN ORGANIZATIONS
steps to evaluate the current market situations and trends that are forging modifications in the
existing systems.
Secondly, I believe that the organizations must take steps to encourage the engagement of
the stakeholders in the different processes with the view of collecting and assessing feedbacks
for improvements in the existing processes. The improvements in the existing processes
improves the productivity of an organization. In this relation, the organizations must commence
mechanisms to develop a coherent system of operations through infusion of relevant
technologies. The utilization of technological innovations would assist organizations in
improving the productivity for developing the revenue streams. On the other hand, the
development of social operations would assist the venture in improving the brand image.
Conclusion
Therefore, from the above analysis it might be stated that the sustainability related
operations that are being planned by the organizations might be segregated into three efficient
factors relating to economic, ecological and social sustenance. The applicability of the
sustenance related operations supports an organization in developing the potentials of the same
while operating in the different markets. On the other hand, the discussion also enumerated the
financial risks that might be faced by organizations while adhering to the sustenance related
approaches. Therefore, the enumeration of the concept relating to triple bottom line and its
relevance to the operations of the venture are being portrayed in the discussion.