Triple bottom line & sustainability: the science of good business

Triple bottom line & sustainability: the science of good business

Hi Alex here. You’ve probably heard about the triple bottom line: a concept that is used a lot when speaking about
sustainability, and particularly sustainability and business. John
Elkington, a global authority on corporate responsibility and
sustainability, coined the phrase in a book in 1997. His argument with that the
methods by which companies measure value should include not only a financial
bottom line, profit or loss, but in social and environmental one as well. The
concept has evolved into one that’s often described as three overlapping
circles. You’ve probably seen this image before: sustainability is typically
defined as the place where economy, social realities, and environmental
health overlap. The concept of the triple bottom line mainstreams the idea of
sustainability as including people planet and profit. It helped business to
understand that long term sustainability of an organization required more than
just an financial equity. It also helped to clarify that when businesses were
considering what sustainability meant for them, it didn’t mean they had to give
up the notion of financial success. But this overlapping circles image of the
triple bottom line can convey a lot more. The circles are all the same size. Does
this indicate that the economy is the same relative size, or value, as the other
two circles which deal with society and the environment? Can we trade, say two
social and three environment for five economy, as long as we stay in the
overlapping bit in the middle: Sustainability? Let’s see if science can
help us understand this better. For more details about this, check out earlier
videos. Science tells us that left to its own devices, the planet operates in a
balanced way. We call this the cycles of nature and they are powered by energy
from the Sun. Science also tells us that matter is not created nor destroyed, while
laws of thermodynamics tell us that everything tends towards dispersal.
That’s the principle of entropy. Because plant cells are, for all intents
and purposes, the only cells that can produce structure from energy,
photosynthesis is the process by which matter is structured on our planet. This
is why we say that photosynthesis pays the bills. Without it, creation of
structure from energy will not occur and entropy would rule the day. So how does
this help us understand the triple bottom line? Plant cells belong to the
environment circle of the triple bottom line. If these plant cells are the original
creators of structure, then this is the circle on which everything else depends
or in which everything is embedded. Everything comes from nature
at some point. Society, which is related to the social circle of the triple
bottom line, exists within the environment, and economy is a byproduct of society. So instead of three overlapping circles, we have three nested circles
where the economy is wholly owned subsidiary of the environment. To achieve sustainability, we need to comply with social and environmental conditions: meeting human needs within ecological constraints. Does this mean that business has to put financial gain last? Of course not, but economic decisions are part of a
strategy to make more money while getting closer to social and ecological
sustainability. The economy is a means to an end, not the end itself.
It’s important to remember that paying the bills happens on multiple levels and
ultimately we’re all dependent on photosynthesis. This is helpful for
business because it provides new perspective on the rationale for
integrating sustainability into who and how they are in the world. There you have
it: a new look at the triple bottom line viewed through the lens of science.
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Comments (27)

  1. Great video again Alex!  Thank you!

  2. Brilliant Alex!!  Clear and succinct.  What is there not to understand?? 

  3. Very easy and clear to understand. Thanks a lot Alex… Regards from Chile.

  4. very well made video 😉

  5. French i guess 😀

    Nice explanation btw.

  6. very nicely shared

  7. Describing the triple bottom line as concentric circles is particularly helpful. For me, it took the concept from abstract to concrete.

  8. Thanks…helps a lot for my Uni exam Todayyyyyyyyyy 🙂

  9. Well explained. Much appreciated.

  10. What's your accent??
    I know it's super random…
    Just curious

  11. What will the world be like when organic food grows locally in abundance everywhere, all over the world? Locally grown organic food designed as eco-systems is the solution to most of the worlds challenges. This is one of the key elements for a foundation of a peaceful and sustainable world for the well being of all, all of nature, including all humans as well as the highest evolution of our societies.
    Check out this vertical farming solution for both indoors and outdoors: Check out biotecture and earthship design
    Permaculture is the solution 🙂
    Val & eli's garden
    Imagine natural organic food growing everywhere designed as ecosystems, that requires less and less maintenance each season at the same time producing more and more food. Food parks , food forests, deserts re-greening with healthy moist preserving green lands, food grown vertically, alongside, around, and in between buildings, organic food grown on the rooftops and so forth and so on.
    Another key element for a flourishing world for the highest potential and well being of all is this:
    Self –enquiry to re-discover our true core selves and natural states of being
    Make sure to check out Mooji’s channel

  12. grt video…I'm curious to know …with the help which tool yu made the video ?

  13. this help me understand my lesson.

  14. Thank You so much !!

  15. Great VIDEO!! I Love it

  16. Hi, how can I reach you? I need to get permission for using this video in my class

  17. Thanks for the comprehensive and engaging explanation 🙂

  18. Thank you – very well explained and important stuff

  19. You can find more blogs about CSR and sustainability on –

  20. THANK YOU SO MUCH THAT I FOUND THIS VIDEO… it’s a big help for me to understand TBL and now I think I found how I can relate this to the sustainability of Architecture

  21. Am doing a returnable glass bottle thesis in order to reduce single use pet with a minimum ratio replacement 1 lier glass to replace 20 liters pet.3BL biz is well understood here

  22. Thank you! it helps!!

  23. Merci bcp d'avoir fait cette video! I learned this first from my high school French textbook. Now learning it for a college business class.

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