Episode 82. A Sustainable Framework for Online Businesses - The Triple Bottom Line Approach
Staff Researcher: Evelyn Gilliard
Is your #1 priority driving profit for your young company? If so, you’re not alone. However, it would be wrong not to warn you… you may be headed down an unfulfilling path. But no worries! Today, we’re going to dive into how you can take your business further and make a greater impact by being more intentional with your contribution to our society and planet. Cue the start of today’s lesson: “The Triple Bottom Line Approach.”
The Triple Bottom Line Approach is a sustainable business strategy big and small businesses can implement that measures their social and environmental impact—in addition to their financial performance—rather than solely focusing on generating profit, or the standard “bottom line.” It can be broken down into “three Ps”: profit, people, and the planet."
Too often, entrepreneurs are fixated on creating profit and while important, we need to progress past that initial stage to having a triple bottom line of success rather than just a bottom line of financial success. This may seem idealistic in a Capitalistic society that promotes profit over purpose, but if you are a purpose-driven leader who is intentional with your company then you have the power to use your business to effect positive change in the world without hampering financial performance. Probably sounds too good to be true, huh!? But in actuality, “in many cases adopting sustainability initiatives has proven to drive business success." 1 You can do well by doing good. Take note, Jeff Bezos!
PROFIT
Profit, pretty self-explanatory. Amount Spent - Amount Earned = Profit.
Profit is pretty much the first lesson that anyone learns as a business owner. We live in a Capitalistic society where people work and strive for more currency where a company’s success heavily depends on its financial performance or the profit it generates for shareholders. Money talks and the world revolves around it. This is why “strategic planning initiatives and key business decisions are carefully designed to maximize profits while reducing costs and mitigating risk.”1
Profit for the longest time has been the end all be all for most companies, but what if you could do and focus on more and had different measurements of what success looked like. If that sounds like something you would be interested in, keep reading for the two other “p’s” - people and planet.
2. PEOPLE
The second “p” is a company’s societal impact or commitment to their people. Whereas traditional corporations look at shareholder value as an indicator of success, the modern approach is to look at every single human that is impacted by your company... whether it's your clients, customers, employees, or the community at large.
A lot of ways companies can do this include:
Ensuring fair hiring practices that are free from bias or discrimination.
Encouraging volunteerism in the workplace.
Forming strategic partnerships with nonprofit organizations that share a common purpose-driven goal.
Donating to worthwhile causes.
Establishing training programs for your employees.
Creating internships to give back to your community by helping young professionals gain experience in their chosen field.
Creating communities on various social media platforms like Instagram, Clubhouse, or Facebook to give back to your community by swapping knowledge and ideas.
Helping your team members reach their own career and developmental goals.
All are wonderful ways that small and big businesses can commit to their people, clients, and community. It’s up to you to choose the methods that best fit your company!
3. PLANET
The final “p” is concerned with making a positive environmental impact on our planet. Our planet is struggling and in need of our help.
Waters are being polluted.
Trees are being cut down and not being replaced quickly enough.
The ice caps are melting.
The ocean was on fire.
The temperatures are skyrocketing to new highs.
Companies ever since the Industrial Revolution in the United States have contributed an obscene amount to pollution and have been one of the key drivers of climate change. Companies are the cause and the solution. We cannot change this downward spiral we are on unless companies are on board to change their business practices to be more environmentally friendly. It is your responsibility to be mindful of how your company affects the environment. We all have the opportunity to reduce our carbon footprint.
We can do this by:
Using ethically sourced materials.
Cutting down on energy consumption.
Streamlining shipping practices.
HOW WE MEASURE UP AT TEAM TYE
Profit: Of course, we are focused on profits just like any other company, that’s how we get paid. We’re constantly striving for ways to improve and expand the company through increased profitability. One way was to promote Evelyn from Team Dynamics Intern to a Team Dynamics Associate Consultant, which means that she can focus more of her time on Team Tye to increase productivity, projects, and engagement.
People: One way we give back to our community is through this podcast! We care deeply about providing research-backed, practical advice that any business owner can implement.
Here are a few other ways we prioritize giving back to our people:
Externally
“I/O Psychology: I/Opportunities, Connections, and Support”: a Facebook Group where we share opportunities, connections, and support to those interested in the field.
“The Leaders’ Circle”: a Facebook Group where entrepreneurs can help one another by sharing the knowledge they have accumulated by transitioning from solopreneur to CEO.
Internally
Supporting team members by discussing career goals, asking questions about the topics their learning about, and providing educational assistance however possible!
Planet: There are real benefits to being a small, virtual business - minimal environmental impact is one of them! We work out of our homes and therefore do not have to commute to work and use gas or require a lot of office materials or building space, we use the energy of our homes that would be running regardless of our presence. When sending gift baskets to new members of The Leaders’ Circle Mastermind (Reopening in 2022 - Click the link to join the waitlist) we use local small businesses that are using ethically sourced materials and streamlined shipping practices.
As Team Tye continues to grow, though, we will still need to be mindful and intentional of our societal and environmental impact and how we can better focus on the 3 “p’s” of the Triple Bottom Line Approach to drive our business success further. Now that you are aware of the Triple Bottom Line Approach and why the 3 “p’s” are important, how will this new knowledge impact your business practices?
