The “triple bottom line” is a phrase coined by John Elkington in 1994. He argued that companies should prepare three different bottom lines.
1. Traditional measure of corporate profit: keeping track of the amount of profit and loss.
2. Company’s people account: a record of how socially responsible an organization has been throughout its operations.
3. Company’s “planet” account: a record of how environmentally responsible the company has been.
Basically the three pillars of business are profit, people and the planet. A big company that uses the triple bottom line is FedEx Kinkos. FedEx Kinkos has increased their practice of recycling from 5% to 30%. Thirty percent of the FedEx Kinkos stores use renewable energy and the company has switched from driving around SUVs and replacing them with the prius.
Pepsi is another large company that has embraced the triple bottom line practice. After doing so, the company’s revenue increased by 13% surpassing Coca-Cola’s market cap for the first time ever. Indra Nooyi, who is the chier executive of pepsico stated that it is important to permeate sustainability and spread the message through practive.
Not only have big companies increased their environmental practices but by doing so they have increased their profits. These companies are leading the way in the business world. These businesses are promoting sustainability.
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