The Stakeholder View and the Triple Bottom Line
Long-term business success is not measured by the short-term bottom line. True business success, and sustainable profits arise when a business maximises the satisfaction of each of its key major stakeholders: customers, suppliers, government, owners, investors, management, staff, the community and the environment.
Actions that fail to recognise the need for balance create profitability in the short-term, such as when a company reduces staff pay and conditions to increase profits and dividends to shareholders, but seriously inhibits profit in the long-term where in the given example such actions lead to reduced morale, absenteeism, strikes and the best and most productive employees leaving for greener pastures.
We believe long-term profitability is only maximised when all stakeholder needs are met and to achieve this a broader focus is required on more than just profit: the triple bottom line of maximizing benefits to People, Planet & Profit.
The people, planet, profit goal recognises that all of us desire to be sustained by undertaking work that is worthwhile, be given the opportunity to grow and develop, have sufficient time for our family and friends and benefit from good governance, vibrant communities and a healthy environment which both result from and maximise profitability.
By keeping this viewpoint front and centre and integrating it into our consulting approach we make sure the advice we provide leads to better outcomes for the totality of a corporations stakeholders and maximises long-term profitability rather than beggaring one or more stakeholders for the sake of another, a sure-fire way of creating future headaches for the business.
At heart our approach is to bring about a transformation of business to fulfill the needs of all stakeholders and deliver effectively on each of the triple bottom line goals by ensuring that all of these needs are effectively integrated into the businesses strategy and supported by effective business processes and top performing HR, marketing, financial and sustainability functions.
Businesses that build a solid triple bottom line:
Get more from their human resource management by attracting, retaining and motivating the best staff
Benefit from community engagement and support for their business
Maximise the dollars clients & customers are prepared to pay for their services
Reduce the risk of adverse business events
Deliver newer and better products and services and lower the costs of production by unlocking innovation
Win accolades and awards
Improve their brands reach, marketability and value
Provide their owners and staff with greater fulfilment and happiness