Triple Bottom Line Metrics: People, Planet & Profit - Free Report Example

Metrics usually refers to the standards that one uses to evaluate the performance. The Triple Bottom Line metrics are used in evaluating performance. Three Bottom Line Metrics consists of People, Planet and Profit. Most of the businesses use metrics to achieve the three-bottom line. Operational managers need to evaluate a variety of metrics that can be of great aid in evaluating supply metrics, logistic metrics, customer satisfaction and also ensure that the financial performance and investment are well managed (Fakhimi et al., 2017). The triple bottom line is aided by the ISO standards, which aim at ensuring that minimum raw materials are used, decrease water usage, low energy usage; therefore, it leaves the managers to focus on the key metrics that include, manufacturing, raw materials and also consumption.

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In the people`s aspect, raw materials seem to contribute to these aspects directly. It is because people want to know that the materials used to manufacture the products are safer for humans and that they are manufactured and produced in the right way (Fakhimi et al., 2017). A company can decide and focus on creating products that are mainly from recycled products, this renders the products eco-friendly, and therefore it reduces the cost, which is usually associated with the purchase and transportation of these raw materials.

On the planet and people`s aspects, manufacturing contributes mainly to the triple bottom line. Manufacturers of the company need to produce products timely and that they need to ensure that they balance the inventory in order to keep track of the client`s orders and to fulfill them. In order for them to focus on the quality, they need to use and utilize the Just- in -time tactics, which are usually referred to as JIT (London, 2017). Through the JIT, it ensures high-quality output, low usage of data and lower returns.

On the planet aspects, consumption is usually associated and tied to it, processes that entail the consumption of products leads to pollution of the environment. When a company is tied to pollution, it usually scares away the investors. Companies need to decrease the usage of energy, which is usually used to create the product; this will decrease pollution of the planet.

Conclusion

Three Bottom Line Metrics consist of People, Planet, and Profit and are used to evaluate and monitor the performance of the businesses (Thabrew et al., 2017). These metrics are usually aided by ISO standards that ensure that usage of raw materials, and energy is minimized.

References

Fakhimi, M., Stergioulas, L. K., & Mustafee, N. (2017). Modeling for sustainable development using the triple-bottom line: Methods, challenges and the need for hybrid M&S. 2017 Winter Simulation Conference (WSC). https://doi.org/10.1109/wsc.2017.8247821

London, T. (2017). The role of business schools in developing leaders for triple bottom line sustainability. Implementing Triple Bottom Line Sustainability into Global Supply Chains, 202-212. https://doi.org/10.4324/9781351285124-10

Thabrew, L., Perrone, D., Ewing, A., Abkowitz, M., & Hornberger, G. (2017). Using triple bottom line metrics and multi-criteria methodology in corporate settings. Journal of Environmental Planning and Management, 61(1), 49-63. https://doi.org/10.1080/09640568.2017.1289900