svensson et al ., 2018 p 989 ). B u s i n e s s F i n a n c e
The question is compare my response to Saeed’s post? What is similar of different? Are you both saying the same thing?
1- in below is my post
While it is not required, some firms now include triple bottom line reporting in their annual report to shareholders. Define triple bottom line reporting and expand on its importance in management’s reports to shareholders.
The triple bottom line is a business concept that emphasizes the need for organizations to include social and environmental impact analysis when engaging the performance (Svensson et al., 2018 p 987). The approach uses three Ps, namely profit, people, and the planet, in the evaluation. Profit is the primary approach in financial analysis, focusing on cost structures, gains made, and managing risks. People focused on the social aspects, whereby the organizations should include the approaches sued in dealing with the social needs. Lastly, the planet factor evaluates the environmental perspectives and commitments that the organization makes to positively impact the environment (Svensson et al., 2018 p 987). The three Ps guide the organization in developing a comprehensive report to include the social, environmental, and financial performances.
The importance of the triple line approach
Reporting is part of the essential components of organizational developments. The determination of the items to include helps in defining the organizational commitment and strategies. The first importance comes with the alignment with the existing sustainability needs across the world. The need for organizational commitment towards the social and environmental perspectives upholds the value of the triple bottom approach for the organizations (Svensson et al., 2018 p 989). For example, climate change has become a concern in most countries and societies. By evaluating performance from the environmental perspective, the organizations have better opportunities in managing the affairs from the internal perspective. From a societal perspective, the customers and other stakeholders emanate from these societies. Developing social-based concepts to assess the performances remain integral in pushing for good relationships with the stakeholders (Isil & Hernke, 2017 p 1242).
The cultural factor is also an essential part of the triple bottom approach. The development of cooperating cultures requires the identification of the everyday needs that identify and address the specific value systems and needs (Isil & Hernke, 2017 p 1240). By identifying the social and environmental perspectives, the organization creates an image of an organization that cares about the locals. Going beyond the profit agenda presents a positive reputation, which is vital for modern societies. The reputation perspectives may not have direct benefits to the profit generation, but the organizations have opportunities to build a positive image that can lead to better market development (Isil & Hernke, 2017 p 1246).
From a competitive perspective, companies compete based on existing strategies, including the perceptions of commitment to sustainability. Corporate social responsibility is becoming part of the factors that define the organizational commitments towards changing lives and reducing environmental degradation. The impact goes into the supply chains, the existing regulatory compliances, and the overall brand value (Isil & Hernke, 2017, p 1240). Even for companies that do not directly impact the environment, integrating measures or dedications towards conservation improves their brand value.
In conclusion, the triple bottom approach remains integral for modern organizations. Through the approach, organizations account for the social, environmental, and financial commitments that influence performance evaluation. The approach presents an expanded scope of relevant activities that define sustainability and the image of the organization.
2- My colleague his name is Saeed his post in below:
While it is not common, most businesses have taken pride in utilizing triple bottom line reporting. It is the goal of a business to adopt a sustainable business strategy with a goal of positively impacting the society and environment while benefiting the shareholders. There is a vast power of sustainable business strategies including springing the firm’s success upwards and addressing the major pressing challenges within a business operation. Achieving sustainability of the business can be utilizing the triple bottom line.
A triple bottom line is a concept that drives the firm to commit its management to measure the organization’s social and environmental impacts as they still focus on their financial performance (Nursimloo, Ramdhony, & Mooneeapen, 2020). This means that the firm focuses on three Ps; the planet, people, and profits. Profit is crucial and the firm’s success depends on how it is financially performing unless it is a non-profit venture. Generating profits means creating shareholder’s capital making such information essential for reporting to shareholders. Traditionally, the firm’s goals often ended at profits making within which reporting showed only the profit and loss numbers. Statements such as the balance sheet provided this information. People are the other component in the triple bottom line concept and highlight the societal commitment of the organization. Businesses, as argued earlier, traditionally strived to create shareholder value and such indicated success. However, the sustainability approach considers both shareholders and stakeholders. It is found that creating value for stakeholders impacted the business positively where community members, employees, and customers felt like part of an organization. By ensuring that customers get the value from the organization (say products or services) they are bound to spend more and or even refer others.
In the same way, having better relations with employees means that they will be dedicated to creating value and achieving the business’s goal. In the same way, adopting CSR will help show that the organization has a purpose in the society hence creating a positive attitude of the business within the community. The third component of the triple bottom line is the planet which is focused on making a positive impact on the environment. Such is done so by ensuring reduce pollution and that the operation of the business does not hinder the realization of quality life within the organization’s jurisdiction.
It is arguable then that triple bottom line reporting has on average reaped financial benefits from its basic nature of committing to sustainable business practices (Nursimloo, Ramdhony, & Mooneeapen, 2020). By utilizing the triple bottom line concept, the business, in the eyes of the stakeholders, does the right thing and while doing so making profits hence creating value for the shareholders. In the same way, where these social and environmental components of triple bottom line reporting are monetized, the shareholders can be able to see where the organization’s resources are invested and be able to ascertain what value they gain from such. Again, there is transparency and a clear form of communication between managers and shareholders.