How are environmental sustainability initiatives part and parcel of a strategy to improve a company's "Triple-P" performance? Why is it important for strategy-makers to find points of intersection between society and the company's ability to execute value chain activities or better serve customer needs?

Question

What will be an ideal response?

Answer 1

At the center of the triple bottom line is a company's responsibility to stakeholders rather than shareholders. Stakeholders include anyone who might be affected by a company's practices, from workers to people in neighboring communities. Actions that need to be taken to get the three P's right are:

• People: Be responsible for how you affect your employees and people in the wider communities with which you deal directly or via your products. Keep their interests at the very forefront. 
• Planet: Be responsible for creating a healthy environment by fostering sustainable environmental practices. Reduce waste, conserve energy, and maintain environmentally safe manufacturing processes. 
• Profit: Work harmoniously in your social and environmental settings. Include costs of pollution, worker displacement, and other factors in profit calculations. 

It is important for strategy-makers to find points of intersection between society and the company's ability to execute value chain activities or better serve customer needs because:

• Such actions can lead to increased buyer patronage. 
• A strong commitment to socially responsible behavior reduces the risk of reputation-damaging incidents. 
• Socially responsible actions and sustainable business practices can lower costs and enhance employee recruiting and workforce retention. 
• Opportunities for revenue enhancement may also come from CSR and environmental sustainability strategies. 
• Well-conceived CSR strategies and sustainable business practices are in the best long-term interest of shareholders.