Triple bottom line (3 pillars): sustainability in business

Summary

The video explores the concept of the triple bottom line, introduced by John Elkington in 1997, emphasizing the balance between economic, social, and environmental sustainability. It challenges the traditional overlapping circles representation by proposing a nested model where the economy is a subsidiary of the environment. The script suggests that businesses should integrate sustainability into their strategies without sacrificing financial success, recognizing that all human activities are ultimately dependent on nature's cycles, particularly photosynthesis.

Takeaways

• 📚 The triple bottom line concept was introduced by John Elkington in 1997, emphasizing the importance of considering social and environmental factors alongside financial performance in business.
• 🌐 It is often represented by three overlapping circles, symbolizing the intersection of economic, social, and environmental concerns in sustainability.
• 🤔 The visual representation of the triple bottom line raises questions about the relative importance and trade-offs between the economy, society, and environment.
• 🌿 Science reveals that nature operates in balanced cycles, powered by the sun, and that matter is conserved through processes like photosynthesis, which is crucial for structuring matter on Earth.
• 🔄 The principle of entropy suggests that everything tends towards dispersal, but photosynthesis counters this by creating structure from energy, highlighting the importance of plant life in the environment.
• 🌱 Plant cells, as part of the environmental circle, are foundational to the existence of both society and economy, suggesting a nested rather than overlapping relationship among the three aspects of the triple bottom line.
• 🏢 The economy is a subsidiary of the environment, meaning that sustainable business practices must align with social and environmental conditions to ensure long-term viability.
• 💡 Sustainability is not about prioritizing financial gain last, but integrating it as part of a strategy that also advances social and ecological goals.
• 💼 Businesses should view the economy as a means to meet human needs within ecological constraints, rather than as an end in itself.
• 🌳 Recognizing the dependency on photosynthesis for all levels of 'paying the bills' provides a new perspective on the importance of integrating sustainability into business operations.
• 👏 The video encourages viewers to subscribe and support the channel, highlighting the community aspect of creating and sharing educational content.

Q & A

What is the triple bottom line?

The triple bottom line is a concept that measures the value of a company not only by its financial profit or loss but also by its social and environmental performance.

Who coined the term 'triple bottom line'?

John Elkington, a global authority on corporate responsibility and sustainability, coined the term in 1997.

What does the overlapping circles image of the triple bottom line represent?

The overlapping circles represent the intersection of economy, social realities, and environmental health, which are the three pillars of sustainability.

How does the triple bottom line concept help businesses?

It helps businesses understand that long-term sustainability requires more than financial equity and encourages them to consider social and environmental impacts in their strategies.

What is the significance of the same size of the circles in the triple bottom line image?

The same size of the circles might suggest that the economy, society, and environment are of equal importance or value in the context of sustainability.

How does the script suggest we should view the relationship between the economy, society, and environment?

The script suggests viewing them as nested circles, where the economy is a subsidiary of the environment, indicating that economic activities are embedded within and dependent on the environment.

What is the role of plant cells in the context of the triple bottom line?

Plant cells, through photosynthesis, are the original creators of structure from energy on our planet, making them fundamental to the environment and, by extension, to the economy and society.

What does the script imply about the priority of financial gain in business?

The script implies that while financial gain is important, it should be part of a strategy that also considers social and ecological sustainability.

How does the script relate the concept of the triple bottom line to the laws of thermodynamics?

It relates the concept by explaining that photosynthesis, which structures matter from energy, is essential to counteract the principle of entropy and maintain the cycles of nature.

What is the role of photosynthesis in the sustainability of our planet?

Photosynthesis is crucial for structuring matter from energy, allowing for the creation of life and ecosystems, and is the process by which nature maintains its balance.

What is the script's perspective on the integration of sustainability into business practices?

The script suggests that integrating sustainability is not only about financial success but also about aligning with social and ecological conditions to meet human needs within ecological constraints.

Outlines

00:00

🌿 The Triple Bottom Line Concept

This paragraph introduces the concept of the triple bottom line, coined by John Elkington in 1997, which emphasizes the importance of considering social and environmental factors alongside financial performance in business. It explains that sustainability is not just about financial success but also about the well-being of people and the planet. The paragraph also discusses the visual representation of the triple bottom line as three overlapping circles, suggesting a balance between economic, social, and environmental considerations.

🔄 Understanding Sustainability Through Science

The second paragraph delves into the scientific perspective of sustainability, highlighting the natural cycles of the planet and the role of photosynthesis in structuring matter from energy. It explains the principle of entropy and how plant cells are essential to counteracting this natural tendency towards dispersal. The paragraph suggests that the environment, represented by plant cells, is foundational to the existence of society and economy, proposing a nested rather than overlapping model for the triple bottom line.

💼 The Role of Economy in Sustainability

This paragraph explores the relationship between the economy and sustainability, arguing that the economy is a subsidiary of the environment within the context of the triple bottom line. It suggests that economic decisions should be part of a broader strategy that also considers social and ecological sustainability. The paragraph emphasizes that while financial gain is important, it should not come at the expense of social and environmental well-being, and that businesses should integrate sustainability into their core operations.

📢 Supporting the Creation of Educational Content

The final paragraph serves as a call to action for viewers to support the creation of more educational content by subscribing to the channel and becoming a patron. It acknowledges the importance of viewer support in making these videos possible and expresses gratitude to current patrons for their contributions.

Keywords

💡Triple Bottom Line

The Triple Bottom Line is a concept introduced by John Elkington in 1997 that suggests businesses should measure their success not only by financial profit or loss but also by their social and environmental performance. In the video, this concept is depicted as three overlapping circles, emphasizing the interconnection between economic, social, and environmental aspects of sustainability.

💡Sustainability

Sustainability, as defined in the video, is the intersection of economic, social, and environmental health. It is the central theme of the video, illustrating the need for a balanced approach to business that considers people, planet, and profit. The concept is used to highlight the importance of long-term organizational sustainability that goes beyond financial success.

💡Corporate Responsibility

Corporate Responsibility refers to the obligations companies have to their stakeholders, including the environment and society. It is a key aspect of the video's discussion on the Triple Bottom Line, emphasizing that businesses should not solely focus on financial gains but also consider their impact on society and the environment.

💡Overlapping Circles

The Overlapping Circles is a visual representation used in the video to describe the Triple Bottom Line. It symbolizes the interconnectedness of economic, social, and environmental considerations. The video challenges the traditional interpretation of equal importance among the three areas, suggesting a nested relationship instead.

💡Photosynthesis

Photosynthesis is the process by which plant cells convert sunlight into chemical energy, structuring matter on Earth. In the video, it is highlighted as the fundamental process that 'pays the bills' by creating structure from energy, which is essential for understanding the dependency of the economy and society on the environment.

💡Entropy

Entropy is a principle from thermodynamics that states that energy and matter tend towards a state of dispersal or disorder. The video uses entropy to explain the natural tendency of the planet towards balance and the role of photosynthesis in structuring matter against this tendency.

💡Economy

In the context of the video, the Economy is one of the three components of the Triple Bottom Line, representing the financial aspect of business. It is reevaluated through a scientific lens, suggesting that the economy is a subsidiary of the environment, rather than an equal or dominant factor.

💡Environment

The Environment is the ecological component of the Triple Bottom Line, which the video argues should be the foundational circle in the nested model of sustainability. It is where all matter originates and is the basis for both society and economy.

💡Society

Society, as discussed in the video, is the social component of the Triple Bottom Line and is nested within the environment. It represents the human element and its interactions within the broader context of ecological and economic systems.

💡Nested Circles

Nested Circles is a revised model presented in the video to represent the relationship between the economy, society, and environment. It suggests that the economy is entirely contained within the environment, which in turn contains society, indicating a hierarchical rather than an equal relationship among the three.

💡Ecological Constraints

Ecological Constraints refer to the limitations imposed by the environment on human activities. The video emphasizes that achieving sustainability requires meeting human needs within these constraints, suggesting a reordering of priorities where economic decisions are made with social and environmental considerations in mind.

Highlights

Introduction of the triple bottom line concept by John Elkington in 1997.

The triple bottom line includes financial, social, and environmental aspects of business value.

Sustainability is defined at the intersection of economy, social realities, and environmental health.

The overlapping circles image represents the integration of people, planet, and profit.

Questioning the equal importance of the three circles in the triple bottom line model.

Exploring the possibility of trade-offs between the three aspects of the triple bottom line.

Science as a tool to understand the balance of nature and the cycles of nature powered by the Sun.

The principle of entropy and the role of photosynthesis in structuring matter from energy.

Plant cells as the original creators of structure on Earth, emphasizing the environmental circle's importance.

Nested circles model where the economy is a subsidiary of the environment for sustainable business practices.

The necessity to comply with social and environmental conditions for true sustainability.

Economic decisions as part of a strategy for social and ecological sustainability, not just financial gain.

The economy as a means to an end, not the end itself, in the context of sustainability.

The multi-level dependency on photosynthesis for paying the bills in various aspects of life.

A new perspective on integrating sustainability into business operations and identity.

Invitation to subscribe and support the channel for more informative videos on sustainability.

Transcripts

Hi Alex here. You've probably heard about the triple bottom line: a concept that is

used a lot when speaking about sustainability, and particularly

sustainability and business. John Elkington, a global authority on

corporate responsibility and sustainability, coined the phrase in a

book in 1997. His argument with that the methods by which companies measure value

should include not only a financial bottom line, profit or loss, but in social

and environmental one as well. The concept has evolved into one that's

often described as three overlapping circles. You've probably seen this image

before: sustainability is typically defined as the place where economy,

social realities, and environmental health overlap. The concept of the triple

bottom line mainstreams the idea of sustainability as including people

planet and profit. It helped business to understand that long term sustainability

of an organization required more than just an financial equity. It also helped to

clarify that when businesses were considering what sustainability meant

for them, it didn't mean they had to give up the notion of financial success. But

this overlapping circles image of the triple bottom line can convey a lot more.

The circles are all the same size. Does this indicate that the economy is the

same relative size, or value, as the other two circles which deal with society and

the environment? Can we trade, say two social and three environment for five

economy, as long as we stay in the overlapping bit in the middle:

Sustainability? Let's see if science can help us understand this better. For more

details about this, check out earlier videos. Science tells us that left to its

own devices, the planet operates in a balanced way. We call this the cycles of

nature and they are powered by energy from the Sun. Science also tells us that

matter is not created nor destroyed, while laws of thermodynamics tell us that

everything tends towards dispersal. That's the principle of entropy.

Because plant cells are, for all intents and purposes, the only cells that can

produce structure from energy, photosynthesis is the process by which

matter is structured on our planet. This is why we say that photosynthesis pays

the bills. Without it, creation of structure from energy will not occur and

entropy would rule the day. So how does this help us understand the triple

bottom line? Plant cells belong to the environment circle of the triple bottom

line. If these plant cells are the original creators of structure, then this is the

circle on which everything else depends or in which everything is embedded.

Everything comes from nature at some point. Society, which is related

to the social circle of the triple bottom line, exists within the

environment, and economy is a byproduct of society. So instead of three overlapping

circles, we have three nested circles where the economy is wholly owned

subsidiary of the environment. To achieve sustainability, we need to comply with

social and environmental conditions: meeting human needs within ecological

constraints. Does this mean that business has to put financial gain last? Of course

not, but economic decisions are part of a strategy to make more money while

getting closer to social and ecological sustainability. The economy is a means to

an end, not the end itself. It's important to remember that paying

the bills happens on multiple levels and ultimately we're all dependent on

photosynthesis. This is helpful for business because it provides new

perspective on the rationale for integrating sustainability into who and

how they are in the world. There you have it: a new look at the triple bottom

line viewed through the lens of science. If you enjoyed this video, please

subscribe and consider becoming a patron by making a pledge of $1.00 or more for

each new video we create. Thank you to our patrons, we cannot make these videos

without you, and thank you for watching.