The economist Milton Friedman famously said, “The business of business is business.” However, we believe the business world of today calls for leaders who are not only striving for excellence in their companies, but who dare to go beyond to create purpose whilst making profit.
Current Economic World
During a session with Sally and Jean-Paul Jeanrenaud from the WWF (World Wild Life Fund)we were presented with overwhelming statistics for example that half of the world’s wealth is owned by 1% of the population and that we are currently using 1.5 of the planet’s productivity. The reality is that we can’t proceed on this course; the world needs action to change.
Looking back on the only past few years, the corporate scandals are omnipresent in the world: BP oil spill in the Gulf of Mexico (2010), the German automotive manufacturer Volkswagen’s emissions fraud (2015), the US bank Wells Fargo’s fake accounts (2016), etc… These scandals always result in huge impact on either environment or us, citizens.
At any rate, why are we witnessing these scandals one after another?
One simple answer might be the fact that making profits is the bottom line for corporations. For sure, profit maximization is one of the essential goals for business entities; however, what if other factors were taken into consideration as importantly as the pursuit of profit? Couldn’t it be avoided such consequences, having huge negative impacts on environment and people?
Now, what we need as future business leaders is a distinct mindset and approach, so-called “Sustainable Development” and “Triple Bottom Line.”
During the conference of WCED (World Commission on Environment and Development) in 1987, Sustainable Development was defined:
“Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”
How does it sound to you? It is time for us to embrace the long-term mindset rather than short-term benefits for our future generations.
With this “Sustainable Development” mindset, one pivotal approach would be the “Triple Bottom Line” concept.
“Triple Bottom Line”
The concept of the “Triple Bottom Line” was developed as an accounting framework in 1994 by John Elkington, the founder of a British consultancy. The Triple Bottom Line is consisted of three Ps: profit, people, and planet. The aim of this concept is to measure not only financial performance but also social and environmental performance of the corporation over a period of time.
Are you ready to embrace the “sustainable development” and the “triple bottom line”?
We believe the best way to build a better future is day by day, one action at a time.
This is why our vision is to create a space where we can discuss different possibilities of adding purpose and value to business. We want to explore the opportunities that rise from the current economic, social and political scenario and how business can use them as a path for sustainable development.
Purpose with profit is our attempt make a contribution towards the endeavor of achieving a better future.