Topic > A Triple Bottom Line Approach: Corporate Sustainability

In recent years, there has been a push for companies to look beyond traditional profits. While profit metrics such as net profit seem to have one of the strongest reactions in the market, companies have now started to understand that their value should extend beyond that value. As defined in a KPMG report on corporate sustainability, “…corporate sustainability is defined as: 'the adoption of business strategies that meet the current needs of the enterprise and its stakeholders, while sustaining resources, both human and natural , which will be necessary in the future. " (p.12) Corporate sustainability should not be understood to be simply a “green” or environmentally friendly strategy. It encompasses more than the natural environment. Rather, it creates long-term value for consumers and employees by taking into consideration of the social, economic and cultural environment in which the company operates. As more and more companies begin to adopt these sustainable business practices, studies are being published showing how significant the effects are on companies' profits through increased profitability. and cost reduction. This article will attempt to explain the general concept of sustainability, the widespread adoption of sustainable business practices, the effects on the profitability of these companies and, finally, the control function in directing this new revolution As introduced above, corporate sustainability looks beyond rather than simply preserving the natural environment and focuses on what some have called the “triple bottom line.” The term was coined in 1994 by John Elkington, founder of a British consultancy called “SustainAbility”. The first bottom line refers to the traditional line item which is u... middle of the paper... efficiency. Attention to energy efficiency and corresponding management of the enterprise's resources also has the added benefit of mitigating the enterprise's future dependence on an unstable energy market. This has convinced many senior executives of the importance of this initiative as it can easily be seen that it will have a significant impact on future profitability when energy sources become scarce and the market responds with much higher prices. By mitigating this risk now through sustainable practices, a company ensures a better, more stable future. In the next sections this paper will showcase two leaders in corporate sustainability, Anheuser-Busch InBev and Walmart, who have made some of the biggest strides in reducing their impact on the environment by investing in projects to reduce resource consumption to become more efficient. energy efficient.