Question:
Discuss About The Bottom Line And Sustainable Development?
The aim of the study is to delve into triple bottom line and sustainable development in the construction industry. The paper takes into a hypothetical company called S Corporation which functions in the construction sector and carries out international civil engineering and trading operations. The first section introduces S Corporation and its operations. The next section deals with general concept of TBL and sustainable development followed by relationship between the two concepts. The next sections delve into the significance of TBL and sustainable development followed by their importance in construction sector. The next two sections deal with Global Reporting Initiatives (GRI) in a construction company and challenges to sustainability.
S Corporation is the financial and construction wing of a British business conglomerate. The headquarters of the company is located in London, the United Kingdom and its branch offices are located in countries like the US, France, India and Australia. The business of the S Corporation consists of global engineering projects, trade and investment, fashion and resorts.
The strategies of S Corporation are to become a global business partners and to earn higher profits. An analysis of the strategies of S Corporation shows that it aims to attain sustainability and bring about new products by fusing technology and fashion.
S Corporation is an international construction, trading, fashion and resort company. The company is a public limited company listed on the London Stock Exchange and is able to generate capital from the capital market.
The reporting parameters of S Corporation are divided into three branches. The company is led by the CEO. The heads of the finance, marketing, human resource, civil engineering and trading departments report to the CEO. All the employees strive to deliver high level of performance after the global standards of performance set by the apex management.
The company is under strict governance of the stakeholders like governments and customers. The company is committed to benefit its stakeholders especially shareholders. The company engages in commercial construction, fashion and trading and investments all over the world(Ayuso, et al. 2014).
Triple bottom line or TBL is an accounting framework which considers three elements namely, social, environmental and financial. The term was coined by Elkington to refer to the impact the operations of the organisations have on the society and that those impacts have financial implications as well. The three bottom line concept stands on 3Ps which every multinational organisation use to operate. The first bottom line consisting of social factors consider the human factor or capital organisations use to operate. The multinational corporations like S Corporation regard their human resources as potential capital important for their productivity(Govindan, Khodaverdi and Jafarian 2013).
The second element of TBL takes into account environment and considers it as natural capital. It considers that construction companies like S Corporation derive their raw materials from the environment and hence should work towards reduction of pollution caused by their construction works.
The third element of triple bottom line framework is financial or economic bottom-line. The economic bottom line deals with economic creation of value the organisations earn after deducting the cost of the inputs and investments from the profits. The profit aspect of the triple bottom line emphasises that the profits companies earn should be enjoyed by the host society. The profit earned is the impact organisations have on their economic environment through their operations(Milne and Gray 2013).
Sustainable development is the theory which deals with continuing of human economic activities and simultaneously sustaining the ecological balance in nature. The companies like S Corporation exploit the resources provided by nature to operate and generate revenue. These organisations invest funds to install modern machinery to carry on their construction work with causing minimum harm to the environment. They are increasingly emphasising on recycling wastes and use it to generate renewable forms of energy like wind energy. Thus, it can be reviewed that sustainable development refers to exploitation of natural resources and taking measures to minimise environmental pollution(Holden, Linnerud and Banister 2017).
The triple bottom line and sustainable development are closely related to each other. The key principles of triple bottom line are that business operations are outcome of use of human capital, natural capital or resources and economic capital. The element of natural capital says that business operations derive their raw materials from nature and should work towards minimising of their impact of their operations on nature. It can be pointed out that this is same as sustainable development, which emphasises exploiting natural resources and controlling pollution simultaneously. Thus it can be inferred that triple bottom line and sustainable development are interrelated(Onat, Kucukvar and Tatari 2014).
Triple bottom line (TBL) is defined as the accounting framework that includes the three dimensions of performance namely social, environmental and economic. The “social, environmental and economic value of an investment” helps in evaluating the performance of an organization in a wider perspective in order to generate greater organizational value. The three dimensions upon which TBL emphasizes are people, planet and profits (Onat, Kucukvar and Tatari 2014). Nowadays, sustainability has been an important part of the goals and objectives of the business enterprises. TBL emphasizes upon the accuracy of the value assets and proper utilization of those resources such that it ensures that the capital is effectively employed. TBL relates to sustainable development, which aims at meeting the needs and requirements of the present generation as well as preserving the resources for the upcoming generations. TBL and sustainable development have become an important part of economic development, which comprises of business, finance and real estate (Savitz 2013).
TBL has become highly significant in sustainability as the investors and managers aim at improving the accounting and strengthening the performance of the investments along with aligning the investments with the requirements and priorities of the society. TBL accounting enhances the reporting framework by considering social performance as well as environmental performance along with the traditional financial performance. The organizations nowadays, are required to consider the impact of their businesses upon the environment, society and the economy of the nation in which they operate. For this purpose, the organizations have come up with the idea of Corporate Social responsibility wherein, the organizations contribute a portion of their profits in the development of the society and the environment. TBL encourages the organizations to cater to the needs of the stakeholder rather than just emphasizing upon the needs of the shareholders. The stakeholders involve the organizational employees, customers, creditors, suppliers, the surrounding environment, owners of the business and the society (Kibert 2016).
S Corporation has emphasized upon the sustainable construction wherein the company has ensured that the construction activities do not impose any harm to the environment and the society. S Corporation has ensured that it follows the concept of sustainable development along the triple bottom line. The company has been involved in several CSR activities and has helped in the upliftment of the society, improvement of the environment and economic development of the nations in which it operates.
Sustainable construction refers to the type of construction that involves such construction designs, materials, technology and processes that help in the sustainable development of buildings and roads. Sustainable construction involves regeneration of houses that help in social and economic development. Nowadays, the construction companies use the concept of sustainable construction to ensure that the natural resources are used wisely and efficiently by minimizing the extraction of minerals and protecting the environment of the area. Sustainable construction involves lowering the environmental impacts of construction while providing comfort and durability to the customers or the occupants. Sustainable construction involves the minimal utilization of water, energy, land and raw materials. Sustainable construction provides positive after effects to the society and the environment in the long- run by minimizing the harmful impacts of construction activities (Wilson 2015).
Sustainable development in construction industry is related to the minimal utilization of water, energy, land and raw materials during the construction process. Sustainable construction considers the triple bottom lines while ensuring its sustainability. TBL is highly significant in sustainable construction as it emphasizes upon reducing the negative impacts of the construction activities on the environment, society and the economy. While emphasizing upon the TBL, the construction companies emphasize upon the minimum utilization of natural resources in order to preserve the nature (Gou and Xie 2017). It emphasizes upon the maintenance of the quality of construction so that the society can obtain benefits from there. Sustainable construction also encourages the construction companies to remain transparent in its activities. Sustainable construction also helps in reducing the operating costs and thus improving the economy.
S Corporation is an international British construction company and has largely been focusing on the construction projects and global engineering, investment and trade, resorts and fashion. The organization is being governed by the Board of Directors which includes a group of eleven members, CEOs and President of the four groups. Headquartered in London, the company now has its offices at over fifty countries (Lee et al. 2013).
The company has a wide strategic level for its growth and sustainability. Initially, all the business categories were formed as independent company, which is still an important issue of the company. The company focuses on the business operations, international investment and trading, construction and engineering. The construction and engineering group is involved with the building works, plant works, housing works and civil works. The investment and trading group is engaged in the development of natural resource, sale and manufacture of the electronics products, trading of iron, steel, basic materials, chemicals, operation of several brands for the textile industry and plant supply (Bebbington, Unerman and O’Dwyer 2014). The basic Corporate Social Responsibility strategies include developing the community. It focuses on establishing its business ecosystem as well as localization within the key markets. It is engaged in increasing the opportunity for contract awards in the key markets in order to strengthen the market continuity and build foundation of the growth. Furthermore, it focuses on working with the local partners and talents in order to enhance the competitiveness and also to build consumer confidence. It is realizing the company’s sustainable future with its stakeholders through profitable growth and global competitiveness (Chen, Ong and Hsu 2016).
The board of S Corporation has installed, which is operating in several committees, thus, helping the company to raise its efficiency by providing professional expertise at the work processes. Committee resolution is made within the delegated authority, which has similar effect as that of the board resolution. All the proceedings, operation as well as the authorization of the organization are in a written form for each of the committee, which needs to be adhered. The board structure comprises nine directors, four executive and five independent directors. The independent directors are the outside directors, who don’t have any special ties with the company (Yeh and Liao 2015).
The report is primarily done on the basis of Global Reporting Initiatives, abbreviated as GRI, which describe its strategies as well as the Corporate Social Responsibility management activities. This report covers the analysis of the strategies, organizational profile, management approach, governance, commitments and engagement of the company. This report covers the company’s buildings and sites in which their operations occur. Along with that, it includes the economic, social and environmental achievements of the company, both overseas and domestic (Lee et al. 2013).
S Corporation’s Board of Directors attempts to protect the investors’ rights and also promote the long term progress or growth of the organization. Being the topmost decision makers, the Board of Directors or BOD decides and deliberates on important issues concerning laws and the Articles of Incorporation. The matters are looked after by the Shareholders’ General Meeting or the company’s executives, for its successful operation. The company commits to develop the community by delivering the customers quality products and value added services (Gou and Xie 2017). Safety of the employees is their first priority. They have created a safe workplace for the employees, by providing them with safe equipments and services. Moreover, they also ensure the safety of their consumers by providing them with verified products and services. In successful companies, safety is regarded as a value. They have also engaged themselves in increasing the value of the customers, fostering the employees by promoting safe and secured work environment, responsible partnerships and stakeholders, compliance management and supporting the community (Blewitt and Tilbury 2013).
The company offers various programs and management services. It offers a pension program for the retired employees in order to secure them with a stable income source after their retirement. The Labor management council helps in promoting the employees’ welfare for their sound development and growth. It strives to form a structured compliance for the organizational system as well as to enhance the compliance within their corporate culture. There vision is sustainable growth and development, by becoming one of the most ethical and transparent organization, through efficient preemptive activities and risk management measures (Yeh and Liao 2015).
The changes in the policies of any business pose a great challenge for the sustainable reporting. The changes often require the involvement or engagement of the stakeholders as well as the shareholders. Engaging them gives a clear picture of the company’s competitors. Moreover, the measuring and reporting sustainability requires getting actual data from the suppliers. Social values must be incorporated while reporting and creating a long term orientation, to maintain the leadership position (Chen, Ong and Hsu 2016).
Conclusion
To conclude, S Corporation has been a major corporation body in today’s business scenario. They are aware of their responsibility in showing a strong leadership in this fourth industrial revolution’s era. Moreover, their commitment to the society is highly commendable. They have created a safe workplace for the employees, by providing them with safe equipments and services. They also ensure the safety of their consumers by providing them with verified products and services. They have also engaged themselves in increasing the value of the customers, fostering the employees by promoting safe and secured work environment, responsible partnerships and stakeholders, compliance management and supporting the community. It has emphasized upon the sustainable construction and also ensured that it does not impose any harm to the environment as well as the society. Its CSR activities have helped it gain development in the economic, environmental and societal aspects.
References:
Ayuso, S., Rodríguez, M.A., García-Castro, R. and Ariño, M.A., 2014. Maximizing stakeholders’ interests: An empirical analysis of the stakeholder approach to corporate governance. Business & society, 53(3), pp.414-439.
Bebbington, J., Unerman, J. and O’Dwyer, B. eds., 2014. Sustainability accounting and accountability. Routledge.
Blewitt, J. and Tilbury, D., 2013. Searching for resilience in sustainable development: Learning journeys in conservation. Routledge.
Chen, P.H., Ong, C.F. and Hsu, S.C., 2016. Understanding the relationships between environmental management practices and financial performances of multinational construction firms. Journal of Cleaner Production, 139, pp.750-760.
Gou, Z. and Xie, X., 2017. Evolving green building: triple bottom line or regenerative design?. Journal of Cleaner Production, 153, pp.600-607.
Govindan, K., Khodaverdi, R. and Jafarian, A., 2013. A fuzzy multi criteria approach for measuring sustainability performance of a supplier based on triple bottom line approach. Journal of Cleaner Production, 47, pp.345-354.
Holden, E., Linnerud, K. and Banister, D., 2017. The imperatives of sustainable development. Sustainable Development, 25(3), pp.213-226.
Kibert, C.J., 2016. Sustainable construction: green building design and delivery. John Wiley & Sons.
Lee, J., Liu, Y., Kang, J. and Ahn, S., 2013. Samsung C&T Corporation 1321-20 Seocho 2-Dong, Seocho-Gu, Seoul, 137-857 Republic of Korea.
Milne, M.J. and Gray, R., 2013. W (h) ither ecology? The triple bottom line, the global reporting initiative, and corporate sustainability reporting. Journal of business ethics, 118(1), pp.13-29.
Onat, N.C., Kucukvar, M. and Tatari, O., 2014. Integrating triple bottom line input–output analysis into life cycle sustainability assessment framework: the case for US buildings. The International Journal of Life Cycle Assessment, 19(8), pp.1488-1505.
Onat, N.C., Kucukvar, M. and Tatari, O., 2014. Integrating triple bottom line input–output analysis into life cycle sustainability assessment framework: the case for US buildings. The International Journal of Life Cycle Assessment, 19(8), pp.1488-1505.
Savitz, A., 2013. The triple bottom line: how today’s best-run companies are achieving economic, social and environmental success-and how you can too. John Wiley & Sons.
Wilson, J.P., 2015. The triple bottom line: Undertaking an economic, social, and environmental retail sustainability strategy. International Journal of Retail & Distribution Management, 43(4/5), pp.432-447.
Yeh, J.L. and Liao, P.C., 2015, August. Benchmarking Social Responsibility perceptions: A text-based approach. In Fuzzy Systems and Knowledge Discovery (FSKD), 2015 12th International Conference on (pp. 1377-1381). IEEE.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download