The signs are becoming clearer, and the evidence is building: the economy of the future will be based on three pillars: People, Planet and Profit.
Companies not incorporating a similar triple bottom line approach in their purpose and strategy will soon lose out and will likely vanish altogether by lack of a right to exist.
Thus far shareholder capitalism (and in some cases state capitalism) have driven economic growth. Whilst generating profits, these models simultaneously promoted economic inequality and environmental degradation.
Going forward this won’t fly anymore. Simply glance at the 7 main themes of the Davos 2021 Agenda:
Stakeholder Capitalism is the answer and the new norm: not only to create value for shareholders, but simultaneously create value for People and Planet in the long run.
(for a more conceptual reading on the matter, please see full article here)
The need to adapt is coming at businesses with lightening speed: not just through obligatory ESG-reporting, but also enforced by consumer and shareholder pressure. If your company has been off the hook thus far you’ve simply been lucky, because the Triple Bottom Line is unavoidable…!
And The Purpose Factory firmly advocates for it!
That is, providing it’s done in a balanced manner: working towards more sustainable operations and positively contributing to People and Planet, yet without losing sight of the company’s profitability.
Eager to truly start your company on the Triple Bottom Line but don’t know how? We’ve got a Stakeholder Capitalism plan for you - just reach out!