The triple bottom line
The triple bottom line is defined as an accounting framework that contains tree parts namely, profits, people, and the planet. From the first structure, profits, it used to measure the economic value that has been created by the company and the economic benefit that is earned by the community and the society surrounding the company. In this case, it depicts how the Hilton hotel has improved the quality of their services and products such that customers are ready to pay extra for their goods and services. In the part of the people, it measures the extent in which the organization has been conducting its business practices. It shows if they have been fair and favorable. It is used to express if the company has been socially responsible in all its operations. In the planet part, it is used to measure how the organization has been environmentally responsible. In this case, it measures how the Hilton hotel has been able to employ sustainable environmental practices to reduce their environmental impacts because of their daily operations.
The triple bottom line of a company means those practices that an organization will employ so that it continues improving its profits margins in ways that affect both the people and the planet positively. For every company that aims to be successful, it has to focus on the triple bottom line. The company has to emphasize on increasing the financial profits it makes on its activities, focus on natural capital and the human capital. For the businesses that utilize the use of the triple bottom line, they gain a more competitive advantage. The companies become more innovative as compared to the other competing companies. For example, Hilton Hotel Corporation comes up with new ways of diversifying their portfolios to have more restaurants, hotels, holiday’s homes, and resort businesses. The company also attracts qualified employees who are willing to work for the company since the enterprise is operating ethically and caring about them. The enterprises that aim at reducing their negative impacts on the environment gain an advantage of the sustainable business. This means that the companies can meet the current needs of their customers without compromising the ability of potential future customers to achieve their needs.
The Hilton Hotel Corporation has addressed the triple bottom line in several ways. In the profit framework, the company aims at improving its financial position in all its activities. The company diversifies its portfolios to cushion itself from economic downturns. The company believes that when one part of the business such as in hotels goes down, restaurants are not affected. The failures of single brands are also easily mitigated as those brands are independently reduced in the market. About the people, The Hilton Hotel Corporation helps in caring about the community around it. The company, in partnership with the Global Soap Project, joined hands to recycle the used soap bars in the United States hotels. The company is responsible for supplying the people around with soaps with an aim of reducing the diarrheal disease and respiratory infections. In the part of the planet, the company introduced new strategies such as LightStay. Because of this introduction, the company has saved more costs, improved economically, and most importantly improved sustainability. LightStay has enabled the company to reduce its waste output, energy use, water use and carbon output. It has created a sustainable environment, through the reduced water use and carbon that is emitted. The Hilton Hotel Corporation have effectively utilized the triple bottom line and therefore able to survive in the competitive market.
References
Bowden, A. R., Lane, M. R., & Martin, J. H. (2001). Triple bottom line risk management : enhancing profit, environmental performance, and community benefits. New York: Wiley.
Guliani, L. K., & Rizwan, S. A. (2016). Corporate social responsibility in the hospitality and tourism industry. Hershey, PA: USA Business Science Reference.
Henriques, A., & Richardson, J. (2004). The triple bottom line, does it all add up? : assessing the sustainability of business and CSR. London ; Sterling: Earthscan.
