The Triple bottom line of 21st century business

Cannibals with Forks

Introduction

AuthorSummary of the book

Part I: Sustaining Capitalism Part II: Seven Revolutions Part III: Transition Part IV: Toolbox

Significance of the bookQuestions

Author

“Dean of the corporate responsibility movement”- Business Week

“A true green business guru”- The Evening Standard

“An evangelist for corporate social and environmental

responsibility long before it was fashionable”- The Evening Standard

Summary

Elkington focuses on: Emerging forms of capitalism How companies implement sustainability principle Triple Bottom Line

Profit People Planet

Seven revolutions intended to harmonize the traditional financial bottom

line with environmental quality and social justice

Part I: Sustaining Capitalism

Sustainability: The principle of ensuring that our actions today do not

limit the range of economic, social, and environmental options open to future generations

“Capitalism and states that capitalism as it stands, is most likely not sustainable.” -John Elkington

Part I: Sustaining Capitalism

The environmental revolution hit the business world like a series of tidal waves Wave 1 (1969-1973) Wave 2 (1988-1990) Wave 3 (1999-2002)

Part I: Sustaining Capitalism

The triple bottom line focuses on three factors: Economic prosperity Environmental quality Social justice

Part II: Seven Revolutions

1. Markets – From Compliance to Competition Sustainable development will increasingly be

delivered by business through markets More competition towards making a ‘positive

impact’ Attitude towards innovation and sustainable

competitive advantage will be needed Cannot forget about Triple Bottom Line criteria

Part II: Seven Revolutions

2. Values – From Hard to Soft Emergence of a renewed sets of values No longer hard, predetermined rigid values Transition towards long term reflection Companies must consider stakeholders’ needs

Part II: Seven Revolutions

3. Transparency – From Closed to Open Companies can no longer keep secrets Business actions are becoming more visible Sustainable reporting

Part II: Seven Revolutions

4. Life-Cycle Technology – From Product to Function

Driven by past experiences when new technologies cause unintended side effects

Companies have to focus on the acceptability of the procedure of production and not just performance

Companies are responsible for the entire life-cycle of their products.

Part II: Seven Revolutions

5. Partnerships – From Subversion to Symbiosis

It is obligatory to cooperate and to develop partnerships

The increasing role of co-opetition Building trust in economic relationships

Part II: Seven Revolutions

6. Time – From Wider to Longer Companies have to respond quickly and transfer

information immediately Requires attention in the long-run

Part II: Seven Revolutions

7. Corporate Governance – From Exclusive to Inclusive

Corporate issues not just around process or product design

Must include business ecosystem Integration of the triple bottom line by developing

more inclusive ways of stakeholder capitalism Diversity on decision-making levels are important

Part III: Transition

“39 steps to sustainability” At each of the 39 steps, certain policy changes are

proposed.

Part III: Transition

If markets are to work for sustainability, there will be a high demand of effort from: Politicians Opinion Leaders Business Leaders

Part IV: Toolbox

Sustainability auditing Engages internal and external stakeholders Must cover all three dimensions:

Environment Economy Society

Part IV: Toolbox

Corporate governance: Is the triple bottom line agenda likely to become a societal concern in the countries

and markets we operate? Are we clear on what changes will be need?

Time: What would happen if we radically stretched the time-scales involved in our

business? Partners:

Does the board understand the “2+2=50” power of “strange alliances”? Life-cycle Technology:

Have we carried out any form of need test on our main products? Transparency:

Have we genuinely moved beyond sustainability promises to triple bottom line targets?

Values: Do we have a value statement? If not, should we have one – and how should it be

developed? Markets:

How do our markets currently value triple bottom line commitments and performance, and under what circumstances might this change in the future?

Significance of the Book

The world and environment and ideas are constantly changing Karl Marx and Friedrich Mont Pelerine John

ElkingtonImportance of bridging the gapTitle: Cannibals with forks

Questions