The Triple Bottom Line
IN THIS SUMMARY
In The Triple Bottom Line, authors Andrew Savitz and Karl Weber look at how businesses can prosper financially while protecting and renewing the social, environmental, and economic resources they need—and how they can fail if they do not protect and renew these resources. Sustainable businesses are ones that measure, document, and report a positive return on investment (ROI) on all three bottom lines: economic, environmental, and social. This Triple Bottom Line reflects an increase in the company’s value, both its profitability and shareholder value and its social, human, and environmental capital.
The authors contend that sustainability should be thought of as the common ground shared by a company’s business interests (those of its financial stakeholders) and the interests of the public (its nonfinancial stakeholders). This is the sweet spot, the place where profits blend with the pursuit of the common good. The best-run companies around the world are identifying and moving into their sweet spots, and they are developing new ways of doing business in order to get there.