The triple bottom line is one of the principles of sustainable business that gives weight not just to making a profit, but also to being responsible for how a business impacts people and the planet. In short, it looks at people, planet, and profit in all business considerations.
The financial aspect is the one we’re most accustomed to, since it has usually been the only focus for a company. The idea of natural capital has received more attention as we understand that many natural resources we often overlook won’t last forever.
The “people” part is really about human capital – the people who actually carry out the work of the company, as well as the people who are impacted by the company (this is the part that puts the “social responsibility” in CSR, corporate social responsibility).
Putting People First
Many forward-thinking companies look at how to really value their people. Perhaps one of the most important developments has been the emergence of B Corps, which expands the concept of shareholders to consider all stakeholders – basically everyone touched by the business, including employees, customers, suppliers, and community members.
Other examples of companies that are putting people first include:
- Zappos, which CEO Tony Hsieh has famously built around employee happiness.
- Semco, a Brazilian company that has implemented innovative workplace practices, including allowing workers to set their own salaries, as the “Caring Capitalist” video explains.
- Clif Bar, the food company with 5 aspirations, two of which relate directly to “Working side-by-side, encouraging each other, our Company is our people” and “Promoting healthy, sustainable communities, locally and globally.”
Companies that put people first realize that it’s good for business. Some early research suggests that green businesses may have happier employees – employee productivity may actually increase when people feel good about the sustainability initiatives of the company that they work for.
What Does This Mean for Your Business?
Keep in mind that your business revolves around people. Who does your business affect? Clearly, employees and customers are included, but think about others, like the residents of the community where your raw materials come from. Then consider, “How can my business have a positive impact on them?” Some options include starting employee engagement programs, teaming up with a local non-profit, and making sure that any outsourced work follows human rights and labor laws.
The more that you can do this, the more that you will build goodwill and loyalty among the people who make your business possible. In turn, this will help your business to be sustainable for the long-term.