Triple Bottom Line Approach
The general accounting framework involves preparing a business for profitability. The Triple Bottom Line approach adds to the standard framework and covers three aspects hence its name. Triple Bottom Line approach involves strategies that take into consideration the profitability of the firm, the planet, and the people. Therefore, the Triple Bottom Line (TBL) approach ensures that the business takes care of the social aspect, ecological factors, and the profitability of the company. Businesses across the world have chosen to embrace TBL in a bid to remain competitive and ethical in the business field. Some of the businesses that have proved that TBL is possible are DHL, Seventh Generation, and EnviroPure Systems.
DHL is a multinational shipping company that has, in the recent past, embraced the triple bottom line approach in carrying its businesses. Generally, shipping companies are by far large consumers of oil and gasoline (Azevedo & Barros, 2017). Therefore, the environmental aspect comes in, and the firm’s accounting department has to take care of it. DHL has been employing environmentally friendly methods of delivery in towns, such as the use of bicycles to reduce oil and gasoline consumption. The strategy has worked effectively in reducing carbon emissions associated with the company’s activities. On top of the ecological aspect, DHL carries out the traditional accounting framework; hence, the environmental factor comes in to complete the triple bottom line approach.
Seventh Generation company is another business that has embraced the application of the triple bottom line accounting framework. The business has combined the traditional accounting framework with ecological and social aspects to complete the implementation of the triple bottom line approach (Boyd et al. 2017). Generally, the Seventh Generation has combined environmentally friendly activities and expansion to cover a larger social group to adhere to the triple bottom line accounting framework. The activities that Seventh Generation ventures involve the use of harsh and harmful chemicals. The cleaning products may be disastrous when released to the environment. However, Seventh Generation has shifted to using natural cleaning agents that provide effective cleaning solutions, while protecting the environment. Therefore, a combination of the traditional accounting framework and the consideration of ecological and social factors has worked perfectly for the Seventh Generation.
The triple bottom line approach has also proved possible for EnviroPure Systems. Supermarkets and big restaurants have been facing significant challenges in the disposal of their waste. EnviroPure Systems has been providing a solution in the disposal of organic waste without causing unnecessary landfills (Choate, Sherman & Zhang, 2018). The company uses a food solution that speeds up decomposition, lead to a useful byproduct for farmers. Also, the process uses dry processing to minimize the use of water hence making the process environmentally friendly. The consideration of the environmental impact of organic waste gives EnviroPure Systems a notch over other firms, and the triple bottom line accounting framework has proved possible.
In sum, DHL, Seventh Generation, and EnviroPure Systems have proved that the triple bottom line accounting framework is possible for a sustainable business. The traditional accounting framework is only concerned with the profitability, and the businesses have had to go a step further to beat the challenges posed by the triple bottom line approach. DHL carries out the traditional accounting framework; hence, the ecological factor comes in to complete the triple bottom line approach. Also, a combination of the traditional accounting framework and the consideration of ecological and social factors has worked perfectly for the Seventh Generation. EnviroPure Systems, a notch over other firms and triple bottom line accounting framework has proved possible.
References
Azevedo, S. G., & Barros, M. (2017). The application of the triple bottom line approach to sustainability assessment: The case study of the UK automotive supply chain. Journal of Industrial Engineering and Management (JIEM), 10(2), 286-322.
Boyd, B., Henning, N., Reyna, E., Wang, D., Welch, M., & Hoffman, A. J. (2017). Hybrid organizations: New business models for environmental leadership. Routledge.
Choate, C. E., Sherman, P. A., & Zhang, R. (2018). U.S. Patent No. 7,316,921. Washington, DC: U.S. Patent and Trademark Office.