Running head: TRIPLE BOTTOM LINE 1

Triple Bottom Line

Institution

Date
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Sustainability

Sustainability is the ability of any organization to continue with a defined behavior in

the long-run (Albino et.al, 2009). Thus, it is the ability of an organization or an individual to
continue with their normal activities continually. Environmental sustainability is best defined as
the ability to maintain rates of harvesting resources, creation of pollution and depleting non-
renewable sources of energy. All this is done continually indefinitely. Economic sustainability,
on the other hand, can be best defined as the ability to support a level of production for a very
long period. On social sustainability, this is the ability of a system to function socially. It is seen
when there is social well-being over a long period. Sustainability is the block that encourages
businesses to make decisions based on a long term future which could be years or decades rather
than for a short period (Hrasky, 2012). Companies should also consider more factors other than
profit and loss.

The emergence of sustainability emerged from public discontent over the damage that
was caused by companies since they focused on the short term goals of maximizing profits
(Lubin & Esty, 2010). Therefore sustainability was seen as an ethical approach to the activities
of any particular company. For companies, the move towards a sustainable production future is
not an easy road to walk by. This is because investors will have to adjust their expectations in
regards to the returns that they expect from the company. A company that decides to focus on
sustainable developments will experience reduced profits in the short run (Dangelico & Pujari,
2010).

Triple bottom line concept

The triple bottom line (TBL) is an accounting framework that focuses the attention of
business managers on the incorporation of social, environmental and financial aspects (Slaper &
Hall, 2011). When a company emphasizes the financial aspects such as profitability and
revenues, it should also be responsible for the social and environmental impacts of its activities.

TBL normally has three Ps which are the people, planet, and profits. The concept aims
at expanding the scope of the business, not just profits for the company but also focus on the
people and the environment which in this case is the planet. The first task is for the business to
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look for the planet (Gou & Xie, 2017). In paying attention to the environment, the company
should ensure that the energy resources that it is using are sufficient. It should also check
whether the greenhouse that it is emitting is polluting the environment.

If the company is besides an ocean, it should check that the oil spills are not there to
avoid contaminating the seas or lands. The company should also be considerate of the state of the
ecological balance and claim responsibility if it is responsible. The other task is that of social
responsibility that requires the company to do something for the people. These people include
the employees of the company and also the community that is within the vicinity of the
company’s premises.

The people who are involved in the activities of the company should be assured that
they are not being used to only benefit the company. They should be paid something in return for
their services. The company can address this issue by maybe distributing employment
opportunities equally and fair distribution of wages. To the local community nearby, the
company can resolve their issues that may be to do with the health issues caused by activities of
the company and also alleviate the community from poverty. This can be done by engaging in
community developments exercises that aim at uplifting the community.

The final straw of this arrangement is to keep an eye at the company’s profits (Tullberg,
2015). Companies exist to make profits for the shareholders. It is therefore important for any
company to ensure that it makes sizeable profits even as it cares for both the environment and the
people. The activities of the organization are important in that it is them that ensure the
perpetuity of the organization into the future generations. Therefore for the organization to see
the future, it needs the profits.

An example of a firm is a Swedish company known as IKEA. This was a furniture

company that raised its sales to about 38 billion dollars in 2016 (Zak, 2015). The company did
not consume all the profits made. Some of the profits were used to recycle waste materials and
made top-selling products. The company earned the praise of not adding any waste to the land.

TBL is a useful strategy that has been employed by most companies to propel them to
higher levels in the industry in which they operate. One of the advantages of this strategy is that
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it raises the transparency level in the company (Gimenez et.al, 2012). This is important in that it
mitigates the concerns of shareholders concerning the concealment of information.

The approach also is important in that it makes organizations be accountable for their
actions. In one of the strategies, the company should conserve the environment and be
accountable for anything that happens to the environment concerning the activities of the
company. The approach is also key in delivering growth to the company and also it is good in
enhancing economic situations of the company (Norman & MacDonald, 2004). A company that
employs this tactic tends to have an economic advantage over other players in the same industry.

Logistics management

This may be best defined as the art of production or obtaining and the distribution of
materials or goods in the right amounts and the right time (Lambert & Stock, 1993). It is an ever-
changing business discipline whose main focus is the management of the process of ordering,
transportation, warehousing, handling of the materials involved and packaging. All these
activities should be integrated into a network and each process should follow each other without
hitch.

Logistics has been performed since the inception of civilization. Despite it being
performed for such a long time, it has never gained grip such that we can claim that there is an
expert in it. It remains the most challenging areas of supply chain management. Logistics involve
all the moves that are necessary for the product to reach the consumer in its original state.

Logistics function often runs all year round without taking any break in between. It is
for this practice that the customers often take the exercise for granted since they expect the
products to reach them in their original condition. People often undermine the tasks that are
involved in logistics for the product to reach the owner in original state.

The largest contributor to logistics is transportation. This is because transportation is

involved in various sectors such as transporting raw materials to the manufacturer. After the
goods have been manufactured by the manufacturer the goods are then moved to various
wholesalers. In other cases, the goods are moved directly to the consumer or to retailers who then
sell the goods to consumers.
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Moving these goods from one point to the others involves various functions which
include packaging of the goods. Once the goods are packaged, they are loaded to the transporting
trucks or wagons. The goods may be warehoused in case they are being transported for storage.
In case the goods are being transported to a wholesaler or a retailer, they are unloaded once they
reach the destination. The goods may be distributed from the point of distribution which may be
a warehouse.

For the players of the logistic market to have a competitive edge over other players in
the market, there is a need for effective and efficient handling of these goods which are in transit.
The current world is so competitive in this area and therefore quality is paramount. One area
where logistics is of importance is in supply chain management. Supply chain involves moving
and transforming goods which originate from raw materials into the finished products. Various
areas are within logistics that add to the integration of logistics into supply chain management.

The first area is transportation docket. This is the docket that helps the goods to move
from one area to the point of need. The main channels employed are air, road, water, and
pipeline for the sake of liquid transportation. The mode of transport employed can lead to better
value on the side of the consumer by reducing the costs that are incurred which translate to the
final price of the commodity. The mode is also important in determining the state in which the
product reaches the consumer. It may lead to a damaged good which lowers its value.

The second consideration is the warehouse which is used in the storage of goods before
they are either consumed or are transported further. The activities of warehousing are received,
storage and shipment of materials. These are moved from the area from where they are produced
to areas where they are distributed. The value of logistics is seen when customer expectations are
met. This enhances a firm's operating competency. The logistics value proposition is important in
helping the firm commit to a particular group of customers.

The goals of logistics are often shared with those of the supply chain. They are to meet
the expectations of the customer. However, logistics on its own has some goals that most players
in the industry have agreed upon. One of the goals is to respond very fast to changes that occur in
the market that relate to customer needs (Cooper & Ellram, 1993). The other goal is to minimize
inventory to reduce the costs involved. The logistics department also aims at consolidating the
movements of the product by grouping various shipments. In the long-run, the logistics
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department aims at providing high-quality services and engage with the relevant personnel
throughout the exercise.

For an effective logistics strategy, various factors should remain constant. The first
factor is that all the activities should be coordinated properly. These include transportation,
warehousing, packaging, loading and offloading. When all these factors are properly
coordinated, the maximum value is gained by the customer. Another strategy is the reduction of
partners in the supply chain. They should be reduced to a manageable number to pool risks
(Buurman, 2002). The supply chain should also be integrated so that it can substitute information
for the inventory.

How logistics management contributes to sustainability

Logistics management is the key area in the realization of sustainability of any

particular company. The goal of any company is to be effective in the triple bottom line concept.
The company wants to be conservative towards the environment, afford the people involved a
decent pay and a proper livelihood and at the same time make profits.

In the area of conserving the environment, the logistics department should ensure that
there are no damages caused while transporting goods. For example, if the company is
transporting oil, it should ensure that there are no oil spills. The trucks that are transporting the
goods on the road should also be checked that their emissions do not pollute the environment.

Another area in environmental conservation is the use of proper fuel in the trucks that
are transporting the goods. They should use unleaded fuels. This makes their emissions to be less
toxic to the environment. With this practice, the company will have contributed highly in
environmental conservation.

The company can also engage in community activities that aim at restoring the state of
the environment to its usual state whenever there is destruction. These activities include
contributing to tree-planting exercises in the community as well as engaging in activities such as
garbage collection and clean up exercises.

The other concept of the triple bottom line is the people. These people should be looked
upon to ensure they are not exploited (Rogers & Ryan, 2001). The main problem with the
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logistics field is that the players barely get time to relax as it is an ever-running department. The
company should ensure that the people working in this area are looked after.

One of the ways that the company should employ in dealing with the people is by
affording them a decent pay. This area focuses on paying the worker according to the input of
work. The pay should be in line with the number of hours worked and also the nature of the work
involved. The other way that the workers can be rewarded is by paying for their extra hours of
work. Any hours that the workers' input that is not in their working period should be properly
rewarded. By affording the workers a decent pay they are even more motivated to deliver for the
company. This is also an approach for gaining optimal triple bottom line.

Another way in which the company should employ in rewarding the workers is by
reviewing the working hours of the workers. The company should ensure that the workers work
in shifts so that workers don't feel as if they are overburdened. Shifts should be in such a way
that there is an optimal time for rest for each worker in any shift. This refreshes the workers as
they gear towards another working period. The schedule should be like other working population
and those working at night should be provided with enough security and also their working gear
should ensure that they remain healthy.

The area of profitability is the major concern for the company. Logistics management
plays a major role in ensuring that the company is profitable. The company should ensure that
the logistics department is well equipped to handle the goods they transport. This move ensures
that goods reach the intended venue in good conditions reducing the damage which is an
important player in ensuring profitability.

While choosing the logistics method to be used the company should put into
consideration the costs that are involved with such an arrangement. The costs of any activity that
the company undertakes are directly related to the profits that the company is likely to realize.
Therefore, the company should use a method that reduces the costs that are incurred. If for
example, the company wishes to transport oil between two points over a long period, it would be
sustainable for the company to lay pipeline transportation system instead of other ways such as
road transport. Pipeline transportation is cheaper compared to the road. Therefore, the company
will reduce transportation costs and hence increase profitability.
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Another way that the company can ensure that it enhances profitability is by ensuring
that the goods reach their destination in good shape. Therefore, the company reduces damages
and therefore, most of the goods transported are available for sale. The company should hence,
employ a logistics method that sees to it that the goods are not damaged while in this phase. One
of the ways is by ensuring that the way goods are handled does not damage these goods. Goods
are likely to be damaged while loading and offloading and also the mode of transport involved.
The company should ensure that those who handle these goods during these phases do not
damage the goods. All the goods are therefore available for sale which increases profitability.
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