Roles and responsibilities of business in society, focusing on the evolution of corporate social responsibility from the Triple Bottom Line concept to the more comprehensive ESG (Environmental, Social, and Governance) framework
Triple Bottom Line
Environmental, Social and Governance
As a consumer when choosing a product or service do you consider the
companies approach to the following:
● What is the core purpose or mission of the company?
● Is the company socially conscious? Is there alignment between their purpose and
their business practice(s)?
● Does the company put their employees and customers first?
● Is the company transparent with their commitment to sustainability?
A sense of purpose is essential for businesses today. - (WEF)
Millennials
● Largest group in the USA
● $2.45 Trillion in Spending Power
● 70% spend with brands that support causes they care about
● 64% goal is to make the world a better place
● They spend their money on ethical and sustainable experiences
GEN Z: Born between 1997 - 2012
● $360 Billion in buying power
, ● Gen Z = 20% of the population
● Save about ⅓ of their income
● 53% work freelance
● Social media impacts buying habits
● More willing to buy secondhand
● 64% will pay for a more sustainable alternative
● 37% want to work for environmentally friendly companies
Companies can do “GOOD” and make a profit
For Profit Companies
● A business that balances purpose and profit, led by people using business as a
force for good.
● The certification framework measures a company’s entire social and
environmental performance
● How a company’s operations and business model impact workers, community,
environment, and customers.
Over 6000 Certified B Corporations in more than 80 countries and over 150 industries
Triple Bottom Line: Why
● Sustainability: Ensures long-term viability of businesses and resources
● Ethical responsibility: Promotes corporate behavior that benefits society and the
environment
, ● Risk management: Helps identify and mitigate potential social and environmental
risks
● Innovation driver: Encourages development of sustainable products and
processes
● Stakeholder value: Creates value for a wider range of stakeholders, not just
shareholders
● Competitive advantage: Can improve brand reputation and customer loyalty
● Regulatory compliance: Helps businesses stay ahead of evolving regulations
● Employee engagement: Can increase employee satisfaction and attract top
talent
● Holistic performance measure: Provides a more complete picture of a company’s
true impact and value
● Local Farmers – training, fair, pay
● Customer – buying a product that has a positive effect on people
● Employees – working for a company making a difference
● Local community – good practice, training, jobs,sustainability
● Government – less governance
● Investor – reliable company, less risky, potentially less return on their investment,
supporting a company that is making a change
Environmental Social Governance (ESG)
● A framework used to assess & measure a company’s business practices and
performance on sustainability and ethical issues.
● Policies, practices and programs
● Investors useESG to evaluate companies on non-financial factors.
● Integrated through business operations and decision-making processes.
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