The Implications of the Use of the Triple Bottom Line Approach Essay - 1

The Implications of the Use of the Triple Bottom Line Approach - Essay Example However, these events reflect the cultural and social values of the country. Therefore, it is the moral responsibility of the business to participate in the upliftment of the society as well as the environment. In the given project, the concept of Triple Bottom Line approach will be discussed mainly in the respect of event industry. Later on, the case of Edinburgh will be discussed to explain how the application of Triple Bottom Line approach can improve the performance of festival and event industry; that is how the event industry can gain sustainable growth in long-term perspective. With growing concern on sustainability, the concept of Triple Bottom Line (TBL) approach is gaining popularity among companies throughout the world. As coined by Elkington (1997), a financial performance that is â€Å"the bottom line† is insufficient to indicate the long-term corporate success of an organisation. Therefore, it is quite essential to pay equal importance towards ecological and social â€Å"bottom lines† (Ehnert, 2009, p.37). The key concept of Triple Bottom Line can be summarised as- wealth generation, social benefit and environment protection. This concept is commonly popular as â€Å"People, Profit & Planet† (Cayreyre, et al., 2009, p.46). The main motto (goal) of a company is to increase the wealth of its shareholders. Thus, it is quite essential for a company to generate profit for its investors (shareholders). Therefore, to attain long-term growth in the industry, a company should improve its profitability. Profit-generating capability can be measured with help of certain financial indicators, such as gross as well as net profit margin, return on investment, return on capital employed and so on. The company is a part of the society. It acquires all the resources (land, labour, capital and material) from the society. Therefore, it is the moral responsibility of a company to participate in the upliftment of the society where it operates. Similar to the social aspect, a business should also consider environmental factor while making essential decisions.