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Systems thinking: triple bottom line
The triple bottom line means thinking about people, planet, and profit when making decisions in business.
The triple bottom line is not perfect, but it is well known. It is an easy way to remember the things that make a business sustainable and profitable. Finding ways to pay people properly, care for the environment and make a profit encourages business to be sustainable.
Saving the planet shouldn't cost the earth. You might have heard people say this before. It means that business can find a way to create their products sustainably and still make them affordable.
Image attribution: patpitchaya on Adobe Stock
What do we mean by triple bottom line?
Sustainability is not just about saving the natural environment; it is also about people. It is not sustainable for people to live in poverty to keep the costs of products low.
Businesses need to pay people a ‘living wage’. A living wage is enough money to fed, clothe and house the worker. The worker needs to earn a living wage in a reasonable number of working hours. Working 40 hours a week and not being able to feed and home yourself, is not sustainable.
Planet here is talking about the natural environment, or nature. This includes trees, oceans, wild animals and birds. Taking care of the planet should be a priority for everyone.
The natural environment is damaged by many human activities: cutting down trees, mining, pollution and so much more. To make products sustainable, we need to stop damaging the environment. We need business to consider better ways to make their products.
Businesses need to make money. Without profit, businesses fail. Sometimes sustainable options are more expensive. Asking people to pay a fair price and allowing the business to continue, is the sustainable choice.
Businesses might need to increase prices when they find better but more expensive ways to work. If people support businesses that are committed to the triple bottom line, everyone is better off.