Strategic management Essay Example | Topics and Well Written Essays - 3000 words - 18

Strategic management - Essay Example This tool has proved to be effective for both business and non-business organizations. This paper aims at evaluating the concept of the Triple Bottom Lineand discussing whether this tool is of importance to businesses. When taking a first look at triple bottom line as a tool for measuring sustainability someone might have the opinion that it is a very naà ¯ve notion. However, this is not always the case when people get a complete understanding of how triple bottom line works and how it is used in measuring sustainability in various contexts (Milne & Gray 2013, p. 25). Triple bottom line has proved to be an effective method for measuring business sustainability and have been used by organizations with varying structure, strategies, and cultures. A business organization that uses triple bottom line as a tool for measuring their sustainability will obviously take into consideration the effect that their activities might have on the people that they are either directly or indirectly involved with. In this way they always have to make sure that all their stakeholders have a good opinion about them. Getting to know this is very important because stakeholders are the people who keep companies in business. Having unhappy stakeholders will definitely affect a business organization’s financial performance (Cohen, Smith & Mitchell 2008, p. 115). Therefore, before a firm focuses much on their financial performance they should make are that their stakeholders are comfortable with the way things are being done in the organization. Despite the fact that the concept of people bottom-line might be attractive, it should be noted that there is always a challenge when it comes to making decisions on how far a business organization should go in terms of making their stakeholders comfortable. It is also not easy when deciding which of the stakeholders should be included in this list and how far a company should go with