People
What comes to mind when you think of the term “stakeholder” in relation to a company? You probably considered the company’s key decision-makers or its shareholders. Although the concept of people, the environment otherwise known as the planet, and profit extends far beyond this conventional model of business management. All potential stakeholders are referred to as “people” in the triple bottom line concept. Customers, affected communities, and people at every stage of the supply chain are all included in this. The company’s shareholders and employees are also included. Even future generations, who may be affected by the company’s actions, are included. According to the people, planet, and profit theory, a company must ensure that all stakeholders will benefit in some way.
This may entail providing employees with adequate compensation, ensuring safe working conditions, or even encouraging them to recognize the value of their work. Fair and equitable hiring practices that encourage diversity at all levels of the business must also be included in the company’s policies, which must also include anti-discriminatory hiring practices. Companies can also play a role in bringing about positive change in their communities by advocating for human rights and working to end hunger and homelessness, for example.
The Planet/Environment
The environment is significantly impacted by a company’s various operations, including the utilization of its supply chain and the construction of new facilities. Elkington proposed that a company’s commitment to environmentally responsible policies and practices would support its profitability. In point of fact, eco-conscious customers are exerting more and more pressure on businesses to adopt greener business models.
Some businesses have pledged to have net-zero emissions. This indicates that they engage in activities that are beneficial to the environment and aim to eliminate as much carbon dioxide as their activities that are harmful to the environment contribute. By embracing a regenerative impact (such as by making a commitment to reforestation), other businesses go one step further.
Naturally, reducing emissions of carbon dioxide is only one aspect of environmental sustainability. By utilizing post-consumer recycled materials, reducing waste, and even partnering with suppliers whose policies are eco-conscious, a company can also demonstrate its commitment to people, the environment, and profit.
Profit
The profit is the most confusing of the three Ps. It is frequently interpreted to mean the company’s own financial profit, but this interpretation is too narrow. Instead, the original intention was for it to include a company’s overall positive or negative effects on the local, national, and global economies.
Child labor or unsafe working conditions, for instance, have a negative economic impact on a company. On the other hand, a company has a positive effect on the economy if it creates good jobs or attracts tourists to the area. A corporation must also pay its taxes in a responsible manner. This final point is more important than it may appear. After all, a business that avoids paying its fair share of taxes also avoids making its fair share of contributions to programs for society. These programs—which are all essential to the greater good of society—may include nutrition assistance for schoolchildren, literacy initiatives, and fire departments.
