People, Profit, Planet

By on July 1, 2013

PPP is a term that was penned in the 90’s and is also known as the Triple Bottom Line. The reasoning behind it was that all companies should be able to account for their 3 different bottom lines. Stanford Payne shares why PPP its important.

When a business is able to break its TBL down to these 3 levels, it can account for its full impact and total cost in doing business.

The 3 being:

  • The people line which is the social responsibility the company is embracing towards labour, community and region which it operates in;
  • The planet line which shows how sustainable environmentally responsible the business is;
  • The profitline, whichis the economic value that the business generates after calculating the inputs and all costs of capital.

Why is it important?

The foundation of the breakdown is that you will only pay attention to what you can measure.

For example if a business can calculate it’s real cost to the environment and planet, firstly the reality check provides a moment of insight and secondly the organisation canstrategize and plan to change and improve the negative cost and impact it is responsible for.
Without the measure the business might be harming the environment for years before the real impact is visible.

But why is it important to measure specifically these three lines?

Reality 

You live in a time of unprecedented change. Businesses are facing opportunities and challenges that are more real than ever and the impact of decisions is felt immediately across the globe.

Poverty, dramatic increase in world population, out of control climate patterns, limited natural resources, deforestation of life supporting eco systems, avery fragile economy, extinction of species and low confidence in business in general are topics that come up in every conversation.
These topics are real. If nothing is done it will only get worse. And what will be left for our future generations?

Challenges

Everybody struggles to balance their priorities and ambitions – the ultimate pursuit of personal and business success, whilst also seeking to make and leave the world a better place.
Is it possible to do both?

The complex challenges to conserve water and reverse climate change, to feed and demand rights for every human on earth, save the Amazon and your rhino’s and support your local communities is not just a “green” issue. The answer is a joined-up approach to rethink, improve and change the game being played.

Rethink

Organisations can and should embrace sustainability for smarter innovation and profitable growth. Social and environmental issues represent some of the greatest opportunities to find new markets of profitable growth, more lasting and engaging sources of competitive advantage and more effective ways to reduce cost and risk.

Around the globe sustainable energy is gaining more attention as aform of investment and growth. Venture capitalists and entrepreneurs are now firmly focused on sustainable markets.

The growth opportunities are rapidly being embraced and the gold rush is on.

Is your organisationembracing these new opportunities?

It is no longer just about doing good, it is about a responsibility to do good!

The future 

Looking at the future and the actual realisation of your TBI – where can your organisation and you start?

The biggest challenge is the monitoring and calculation of the value for each line. Look into tools that are available to provide guidelines for this.

And in the immediate start with plans and actions to actually do something –
People examples –don’t support suppliers known for using child labour, pay fair salaries to all workers, create a safe and enjoyable working space for staff and give back by contributing to the strength and growth of your immediate community maybe through education or food;
Planet examples –manage your energy consumption, reduce, reuse and recycle and in events of toxic waste do the right thing even if it costs more;
Profitexamples – maximse profit by using both People and Profit as criteria in every single decision and embrace Fair Trade products in the office and at home even if it is at a cost.

The challenge

The “People Planet Profit” challenge is about bringing the issues of sustainability to the heart of business. It demands that business leaders rethink fundamental strategic questions.
PPP demands the attention, vision and courage of business leaders and every manager across all organisations globally to free business from the current negative spirals of a failing world and to embrace and inspire a new spirit of entrepreneurship and innovation through which all of us can prosper.

Will you step up and be the change?

Welcome to the dawn of a new business world.

Now is the time to think and act differently.

 

 

 

 

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