Firm Objectives Essay
The triple bottom concept was coined in 1994 by John Elkington. He saw that there was more to making profits and giving back to the community by using the bottom lines. It was also a part of the corporate social responsibility where a firm in as much it would like to make profits; it should give back to the society and protect the environment. John came up with the three basic Ps which according to him from the bottom line for success. They are people, profit, and planet. This concept was incorporated by many business people. One of the most successful business people who used the triple bottom line is Jessica Alba. She is the founder of the Honest Company. She majored in giving back to the city, using environmentally friendly products and focused on making profits. She is now one of the richest young business women in the world (Field, 2013).
Just like Jessica Alba, a focused business person can use these concepts to grow his or her business empire. The first and major P is profit. Every firm's main objective is to maximize on all profits. The economic value created by the business is very important. A company should try to use all possible means to make sure that it makes maximum profits. This can be done in ensuring that the firm takes a keen look at its SWOT analysis. This will help in analyzing the strengths to maximize the profits, the weakness that could be hindering profits, new opportunities to add to the strengths in order to stand out in the market and any possible threats to their profits. Once a firm full understands this and puts everything under control, it will be prosperous. Jessica Alba was motivated by the needed to create non-toxic products after having her first baby. She did not want her baby to grow through a rough childhood like the one she had (Savitz & Weber, 2013).
The second P, that firms should incorporate, is the people. These are the fair and favorable practices that concern labor. A business should try to consider the people in the area where it located. All stakeholders of a firm fall in this category. The firm should give favorable working conditions for all the employees with a reasonable pay. This benefits the society. The products should also be beneficial to the people, and the process should not be aimed at exploiting them even if the company wants to maximize the profits. Jessica Alba was concerned about the welfare of other people who would be going through the same problems she had as a child. She also offered employment to many people. This move not only benefited her but the people surrounding her (Savitz & Weber, 2013).
The last bottom line P is the planet. We all should do our best to protect the environment. Every company is expected t use products that are not harmful to the environment. This involves all living things. Harmful products should be properly disposed of to prevent any harm to the environment. The Honest Company objective was to give products that would help to reduce toxic in people bodies. This means that the products used were not toxic (Field, 2013). It is always good to try to consider the environment. Using desirable is like giving back to the society in a big way because it is well cared for.
Field, A, (2013) Jessica Alba’s Triple Bottom startup raises $25 million and The bottom line of corporate good. Retrieved from: http://www.forbes.com/sites/annefield/2013/11/17/jessica-albas-triple-bottom-line-startup-raises-25-million/
Savitz, A. W., & Weber, K. (2013). The triple bottom line: How today's best-run companies are achieving economic, social and environmental success -- and how you can too. San Francisco, Calif: Jossey-Bass.