Check out Reading 9.2 in your text (pp. 475-481) - Getting to the Bottom of "Triple Bottom Line."

In this reading, the authors assert that TBL language is vague and that it is difficult to measure a company's "social bottom line." The authors go on to say, "The concept of a Triple Bottom Line in fact turns out to be a "Good old-fashioned Single Bottom Line plus vague commitments to Social and Environmental concerns."" Is it possible that some companies are being deceptive (or jumping on a bandwagon) by embracing this language - or do you feel that most of them are genuine in their concern for society and the environment?

Do the authors have a valid point?

***** primarily at the case of the so-called social/ethical firms can expect to do better by their financial bot- bottom line. But most of the conceptual issues we tom line in the long run. will explore with this bottom line would apply We will not examine each of these claims in iso- equally to its environmental sibling.) lation now. Rather we will focus on some deeper A. What does it mean to say there are criticisms of the 3BL movement by making refer- ence to these five central claims about the project additional bottom lines? and its aims.... (Measurement Claim) The components of "social performance" or "social impact" can be measured in relatively objective ways on the basis of standard indicators. ... These data can What Is Sound about 3BL Is Not Novel then be audited and reported. [M]any uses of Triple Bottom Line are simply (Aggregation Claim) A social "bottom line"- synonymous with corporate social responsibility" that is, something analogous to a net social (CSR)for example, when the CEO of VanCity "profit/loss"--can be calculated using data from (Canada's largest credit union) defines the 'triple these indicators and a relatively uncontroversial bottom line' approach to business as taking envi- formula that could be used for any firm. ronmental, social and financial results into consid- B. Why should firms measure, eration in the development and implementation of a corporate business strategy.... calculate and (possibly) report their Now it might be argued that what is new about additional (and in particular their the 3BL movement is the emphasis on measure- social) bottom lines? ment and reporting. But this is not true either. Those who use the language of 3BL are part of a (Convergence Claim) Measuring social perfor- much larger movement sometimes identified by mance helps improve social performance, and the acronym SEAAR: social and ethical accounting, firms with better social performance tend to be auditing and reporting. This movement... has grown more profitable in the long-run. in leaps and bounds over the past decade, and has (Strong Social-obligation Claim) Firms have produced a variety of competing standards and standard- an obligation to maximise ... their social bot- setting bodies, including the Global Reporting Ini- tom linetheir net positive social impactand tiative (GRI), the SA 8000 from Social Account- accurate measurement is necessary to judge how ability International, the AA 1000 from Account well they have fulfilled this obligation. Ability, as well as parts of various ISO standards. .. . [I]t would be safe to say that anyone supporting (Transparency Claim) The firm have obliga- the SEAAR movement would endorse at least four tions to stakeholders to disclose information about how well it performs with respect to all of the five 3BL claims listed aboveand certainly the Measurement and Transparency Claims.... But stakeholders. only the Aggregation Claim is truly distinctive of a In short, 3BL advocates believe that social and "bottom line" oach to social performance, and environmental) performance can be measured in this claim is definitely not endorsed by any of the fairly objective ways, and that firms should use these major social-performance standards to date.... results in order to improve their social (and environ- One often has the impression that 3BL advo- mental) performance. Moreover, they should report cates are working with a caricature that has tra- these results as a matter of principle, and in using ditional pre-3BL" or "single-bottom-line" firms and reporting on these additional "bottom lines" and managers focussing exclusively on financial