This website uses cookies to ensure you have the best experience. Learn more

Triple Bottom Line Reporting And Accounting Standard Lays Groundwork For Managing Corporate Social Responsibility

1565 words - 6 pages

"The business of business is business" - or at least it used to be! It was not too long ago when companies single-mindedly pursuing "the bottom line" and "shareholder value" were considered morally justified in their own right. How times have changed.With the entrance of the "stakeholder society": transparency, corporate governance, accountability, public rights - these are the new maxims of today. According to the 1999 Millennium Poll on Corporate Social Responsibility, by PricewaterhouseCoopers, which surveyed 25,000 consumers, "Two in three citizens want companies to go beyond their historical role of making a profit, paying taxes, employing people and obeying laws; they want companies to contribute to broader societal goals as well." Let's consider the 'green' movement as an example. In the past 10 years, environmental issues have shifted from being a fringe movement for "bunny-huggers" to a global concern in world politics. Witness the Rio Earth Summit in 1992, the success of the German Green Party in Europe, the Kyoto Protocol on addressing climate change in 1997.The spill-over effect into the business sector has been self-evident. Thousands of companies world-wide are signing up to voluntary environmental standards, such as the International Standards Organisation's 14001 Environmental Management System, the United Nations Development Programme's International Declaration on Cleaner Production, or the Responsible Care Code of Practice of the chemicals industry.Triple-Bottom-Line ReportingAt annual meetings, concerned shareholders are increasingly calling on directors to account for the social and environmental impact of their corporation's operations.While environmental, health and safety reports are now increasingly common, reports that tackle social issues such as human rights and child labour are not. Says Mary Robinson, the UN High Commissioner for Human Rights: "In the last few years, perceived corporate complicity in human rights abuses has damaged corporate reputations and, in some cases, share price. Twenty years ago, few companies had environmental policies. Compare that with today's picture, where the environment is unquestionably a mainstream business issue. So it should be with human rights."The overall trend towards "triple bottom line" accounting and reporting is growing, whereby organisations provide an integrated account of their economic, social and environmental management performance.Why do/should companies use triple bottom line reporting?You don't have to be a cynic to realize companies will not undertake social programs without expecting financial gains for the firm, whether through a better image in the long term or an immediate boost to sales. Yet, there is something to be said for the culture, attitudes and values engendered in a company merely by the compliance with a triple bottom line approach.The oil giant Shell is a specific example that was initially affected by two events in 1995, when it became the target...

Find Another Essay On TRIPLE BOTTOM LINE Reporting and Accounting Standard Lays Groundwork for Managing Corporate Social Responsibility

The Triple Bottom Line: the People, the Planet, and the Profits

988 words - 4 pages ). Developing ethical leadership. Business Roundtable,1(1), 1-13. Heskett, J. (2008, February 1). How sustainable is sustainability in a for-profit organization? Retrieved from Mattila, M. (2012, December 6). Sustainability reporting and the law: practical considerations for avoiding liability. Retrieved from

uniform accounting standard produce uniform financial reporting

741 words - 3 pages together towards convergence. (1) Why did they take this approach? Why is it important to practise the same standard across firms and countries? It is said that uniform accounting standard produces uniform financial reporting. Hence, all financial information will be treated and presented in the same manner globally. The first advantage from this would be enhancing the comparability of high quality statements. For example, company A wishes to

Corporate Governance and Social Responsibility

1337 words - 5 pages competition etc. But also company can increase its profit while contributing social goals according to the theory of the American famous economist Milton Friedman . In these days, big firms use Corporate Social Responsibility (CSR) as one of the most important tool to increase its profit. CSR is a management model that promotes ethical conduct and values for businesses by creating public relations policies to promote these practices to publics and

Ethics and Corporate Social Responsibility

1603 words - 6 pages social responsibility is a business's commitment to contribute to economic development while improving the quality of life of the workforce and their families as well as the community and society at large. (Investopedia, 2014) This case discusses Ethics and Corporate Responsibility by observing Cinco, a pulp processing plant.As a newly promoted plant manager for Cinco, Jim is required to prove his ability to effectively manage several employees who

Globalization and Corporate Social Responsibility

2401 words - 10 pages access to behaviour like never before. Consumers are starting to understand the issues and are easily swayed by any firm demonstrating CSR. Information that is passed this quickly can be very positive, but can also be devastating to the corporate bottom line if negative information is released. CSR is a great way for companies to try and stay ahead of negative publicity and can also be seen as a competitive advantage over their competitors

Globalization and Corporate Social Responsibility

835 words - 3 pages Globalization and Corporate Social Responsibility Events in resent history have made a clear statement to the executives of the world that Globalization and Corporate Social Responsibility (CSR) are tightly linked in projecting a positive brand image. Most of the negative publicity surrounding the globalization debate is directed at one key area, the perceived lack of corporate social responsibility in the business culture of the developed

Corporate Governance and Corporate Social Responsibility

1970 words - 8 pages   Unit Assignment 1 CORPORATE GOVERNANCE 1.1 STRUCTURE, ROLES, OBJECTIVES Shareholders in this company are crucial as they are the success and core of this company. Keeping the shareholders of this company happy will result in tremendous outcomes. Shareholders will elect the Board of Directors which in turn, Board of Directors will hire the Chief Executive Officer. The CEO has the authority and responsibility of hiring and managing the

Illegals and the Bottom Line

4329 words - 17 pages byzantine immigration bureaucracy, only to watch politicians in both parties dangle the promise of amnesty in front of people who jumped the border and the line” (1). This is completely outrageous and irresponsible on the part of our cowardly government administration and politicians. The kowtowing that occurs whenever a group with an agenda screams loud enough is disgraceful and a serious adjustment needs to be made. For example, on March 25, 2006

Corporate Social Responsibility and Business Success

1208 words - 5 pages Introduction There has been a seismic shift in how companies market themselves and their respective goods and services. The primary reason for the shift seems to be a changing consumer base; one that incorporates social, environmental and ethical issues into their buying decisions. Pressure from these more socially conscious consumers has driven companies to adopt more robust corporate social responsibility (CSR) strategies in order not only

Business Ethics and Corporate Social Responsibility

581 words - 2 pages .htmlDynacare Laboratories. Retrieved August 8, 2008 from Environmental Management Initiative and Business for Social Responsibility.(2006). GEMI-BSR Survey: Sustainable Business & Strategy: Views From theInside, ExecutiveMedical Diagnostic Laboratories, LL> Retrieved February 29, 2008 from, D. (2008) 100 Best corporate citizens 2008. Retrieved August 8, 2008 from, J. W. (2006). Business ethics: A stakeholder and issues management approach(4th ed.). Canada: Thomson South-Western.

Monsanto: Achieving Sustainability and Corporate Social Responsibility

1189 words - 5 pages . (Monsanto, 2014) In 2013, Corporate Responsibility Magazine listed Monsanto Company as number 36 on their list of 100 Best Corporate Citizens (Corporate Responsibility Magazine, 2014). Corporate Social Responsibility and Sustainable Agriculture Monsanto’s primary commitment is to sustainable agriculture; they have been successful in creating genetically modified seeds to help farmers double their yields by 2030 from year 2000 levels (Monsanto

Similar Essays

Sustainability And Triple Bottom Line Reporting

1961 words - 8 pages Engineering, "The Triple Bottom Line Report," 2009, Mitchell, M., Curtis, A., & Davidson, P. (2008). Evaluating the Process of Triple Bottom Line Reporting; Increasing the Potential For Change. Local Environment, 13(2), 67-80. Painter-Morland, M. (2006). Triple Bottom-Line Reporting as Social Grammar: Integrating Corporate Social responsibility and Corporate Codes of Conduct. Business Ethics: A European Review, 15(4), 352-364. Hespenheide

A Triple Bottom Line Approach: Corporate Sustainability

1056 words - 5 pages In recent years, there has been a push for companies to look further than the traditional bottom line. While profit metrics such as net income seem to have some of the strongest reaction in the market, firms have now begun to see that their value should extend past that. As a KPMG report on corporate sustainability defined, “…corporate sustainability is defined as: ‘adopting business strategies that meet the needs of the enterprise and its

Triple Bottom Line Theory Essay

881 words - 4 pages business interests and the interests of the environment and society intersect". Leading for Sustainability notes that "the Triple Bottom Line (TBL) evaluates business success by three factors: social performance, economic performance and environmental performance. A recent study showed that leaders believe that taking care of people, profits and the planet are critical to organizational success, both now and in the future".Organization Profits

The Triple Bottom Line: The People, The Planet, And The Profits

1842 words - 7 pages remain operationally viable. With this in mind, the Triple Bottom Line was developed to keep managers and entrepreneurs mindful of the things which matter most to a company: people, planet, and profits. These three things constitute the foundations of a business, and without managing them effectively, a business can find itself falling behind in the marketplace. The Triple Bottom Line creates a three-tiered focus for the company to work towards