Platforms Glossary
Triple Bottom Line (3BL) is a business theory coined by entrepreneur John Elkington. The 3BL theory states that instead of companies being solely focused on a monetary bottomline, they should also focus on people and the planet. Specifically, companies should strive to create a positive working environment for their employees, prioritize customer satisfaction, create trusting relationships with their business partners, and seek to have an eco-friendly impact on the planet. By focusing on their 3BL, businesses can accurately gauge their profitability, corporate ethics, and impact on the environment over their companyʻs lifespan.
Small and midsize corporations that prioritize their 3BL often experience an increase in their employee retention rates and profit margins. By offering employees competitive wages and a supportive working environment, small corporations have a better chance of retaining their employees. This can help cut costs associated with recruiting and onboarding new employees. In addition to this, minimizing small businesses’ environmental impact can help set themselves apart from their competition and improve their profit margins. In most cases, when customers are torn between similar products, they tend to weigh each product’s non-financial metrics such as environmental impact to decide which product to purchase. If a small business’s products prove to be more environmentally friendly than their competition’s, it is likely customers will gravitate towards their products, improving their monetary bottom line.
