Bristol 2015 Green Capital of Europe Analysis - Assignment Example

?Bristol Green Capital of Europe, Impact Report Table of Contents Table of Contents 2 Part 3 Part 2 5 Part 3 7 References 9 Appendix 10 Part 1The Triple Bottom Line (TBL) is an accounting term which comprises three classifications of the performance. It is a concept that has been derived for encouraging the organisations to attain long-term sustainability. It is also designed for the concern of corporate social responsibility but not for the accounting (Vanclay, n.d). The three major classifications of the TBL are financial, social and environmental. These three classifications are also popular as the three Ps i.e. people, profit and planet (Slaper & Hall, 2011). The term ‘TBL’ was first initiated by John Elkington in the year 1995 but it was not so popular since the publication of his book on the topic of TBL. In 1997, he published his book namely “Cannibals with Forks: The Triple Bottom Line of 21st Century Business” in order to focus on the significances of TBL within an organisation. According to John Elkington, TBL not only focuses on the economic value of the organisation but it reveals the social and environmental value. Nevertheless, in the initial stages of its invention, most of the organisations refused its adoption as they were acquainted with the traditional reporting structure. The report presented by Vandenberg (2002) said that a survey was conducted within 32 organisations and the result found was that most of them were puzzled regarding the philosophies laid down by the term TBL. However, in the later period of 2002, Frank Vanclay stated that almost 160 international organisations along with numerous government organisations have strongly adopted the philosophy of TBL. These companies that adopted the philosophy of TBL stated that the TBL should be implemented within the organisation as a particular business ethic but not as an accounting framework. It was recommended by them as a part of the best accounting structure for the company. Joanna Dickson Holmes agrees with John Elkington regarding the utility of the TBL as she also believes that the TBL of an organisation is measured not only on the basis of economic value but also the social and environmental value. He states that it is not always necessary that the environmental and social factors may be the value that it adds but it might be those factors which can cause damage to the organisation (Holmes, n.d). One of the renowned organizations, Cascade Engineering also states the utility of the TBL on the basis of environmental capital, social capital and financial capital. They affirm that in their organisation, TBL serves as an instrument for accounting all the efforts of sustainability (Cascade Engineering, 2013). From the above definitions stated by the different authors, it has been observed that the TBL serves as an accounting structure and a sustainability effort in terms of social, economical and environmental factors. William McDonough and Michael Braungart state that the TBL is considered as a vital tool for maintaining a balance in the economic objectives of the organisation along with a desire to improve the environmental factors affecting the organisation. The TBL minimises the social and environmental liabilities owed by an organisation such as waste management and the efficiency of resources. It facilitates the managers of the organisation to identify the problems and to set up the strategies for mitigating the negative effects of those problems occurring within the organisation (McDonough & Braungart, 2002). The overall definition of TBL lies as the structure which measures the activities within the organisation on the basis of social, economical and environmental norms. It is generally used by the top management of the organisation in mitigating the negative effects of the organisation and setting up strategy for the growth and development of the organisation. The philosophy of TBL is related with the sustainability of the organisation. According to the business perspective of the organisation, the philosophy of TBL came into light as the theory of sustainability rose into the organisational culture. In the ancient days of the business operations by organisations, the social, economic and environmental factors were regarded as the impractical factors. However, in the present scenario, along with the passage of time these factors have become the prime concern for the organisations as they render long-term sustainable strategies. The philosophy of TBL has also become a part of the daily activities for all the top level managers within the organisations (McDonough & Braungart, 2002). The philosophy of Triple Bottom Line also accounts for sustainability which aids the organisation to develop business strategies which pursue positive goal and create value for the organisation along with the design of innovative products or services. Part 2 SMG Computers is a Bristol based company which offers a range of personal computers, repairs laptops and also assists in providing IT support. This company has set its organisational goals on the basis of the social, environmental and financial factors. In response to the first question (see appendix) which aimed at identifying its organisational goals, it has been found that the managers have implemented strategies which focus on the attainment of the social, organisational and financial goals and move towards the success. It has laid down its objective in providing their customers with such services that will identify the needs of the customers and satisfy them accordingly. Being a computer service provider company, it focuses on the meeting of the customers’ needs and satisfying them fully in order to gain more customers and increase the revenue of the company. According to the second question (see appendix), the managers of the SMG Computers reported during the interview that they have been using the computer system as a tool for promoting the goals and objectives of the company along with adding value to their customers and saving time, labour and finance. It provides their customers varied services such as the repair of laptops along with supporting in IT. With regard to question three (see appendix), it is realised that the managers of the SMG Computers were found to be working in accordance with the philosophy of Triple Bottom Line which assists them in setting up the organisational goals and working efficiently for the achievement of these goals. During the interview process, the managers replied that they had to face few challenges in the initial stages of the implementation of the TBL factors in their organisational goals. This reply was given in response to the third question which aimed at knowing whether the company was facing certain conflicts during the management of the TBL factors in the organisational objectives. Nonetheless, when it was used as a philosophy for boosting the environmental and financial sectors of the company, this process became quite useful in attaining the organisational objectives. The TBL being an accounting framework also helped the company to boost its revenue and reduce the expenses so that it can earn maximum profits. The fourth question (see appendix) which focuses on the importance of the European Green Capital Award in encouraging the business or managers to embrace better initiatives in keeping with the TBL gave the same reactions of the managers. They all were agreeing to the fact that it really encourages the managers to attain the organisational objectives in accordance with the TBL factors. It is an award which is of high prestige and proves the efficiency of the company in achieving the environmental standards and sustainable development. The reply obtained for the fifth question (see appendix) from the managers was that they experienced advantage from the TBL in their organisation. They affirmed that TBL helped them to achieve a long-term sustainability and increase the revenue within their organisation. On the contrary, the disadvantages as reported possessed comparatively low effect on the organisational goals. They reported that if the TBL is implemented as an accounting structure then it would be a complete disaster for the company rather it is better to be utilised as a key element of corporate social responsibility. An accounting standard is quantitative and can be analysed easily but the factors of social and environmental dimensions cannot be assessed quantitatively. In keeping with the last question, which focuses on the direct relationship of TBL with the sustainability and organisational goals, it has been observed that their organisational goals were actually not directly related with the TBL factors but the goals were set on the basis of the three factors of TBL i.e. social, environmental and financial. It had been designed in such manner that it not only accomplished the TBL and also met the criteria for identifying the needs of the customers and satisfying them. The company also achieved long-term sustainability which interfaced the financial activities along with the social and environmental factors keeping in balance. Part 3 From the study of the Triple bottom Line, in the first section and the primary research conducted in SMG Computers, it has been ascertained that TBL enhances the sustainability of the company and facilitates to set the organisational goals on the basis of social, environmental and financial factors. It is observed that SMG Computers adopts the TBL as an initiative to increase its annual revenue with a reduction in the expenses. Being a small company, the managers are striving to improve the business system and attain its mission of satisfying the needs of the customers and earn profits simultaneously. The TBL has assisted SMG in attaining sustainability which in turn has reduced the risks of operational issues of the company. The most important benefit that SMG has derived from the TBL is motivation to the employees in achieving the organisational goals which in turn leads the company towards desired success. The provision of motivation to the employees can be made apparent from the interview conducted with the managers of SMG. During the interview, they had reported that TBL plays a special role in moving the employees towards the achievement of European Green Capital Award. SMG being a small company has adapted to the system of TBL in order to achieve sustainability and move towards the desired success. The managers of SMG reported that the only problem faced during the implementation of TBL was that the quantitative value of the social and environmental factors cannot be assessed. They reported that the accounting structure is quite easy but for the betterment of the company and for making a move towards being considered for the award, they have been implementing TBL. Although they have not directly related their organisational goals with the TBL but it is observed that the strategy has benefited them a lot. The managers also agree to the fact that TBL can contribute a lot in the growth and development of the company. After the entire study, it can be concluded that TBL is the best motivational factor for attainment of sustainability and it also encourages the organisations in making a move towards the achievement of the European Green Capital Award. References Cascade Engineering, 2013. Triple Bottom Line. Sustainability. [Online] Available at: http://www.cascadeng.com/triple-bottom-line [Accessed November 28, 2013]. Holmes, J. D., No Date. Sustainability and the Triple Bottom Line. Local Business Consultant Outlines Steps toward Corporate Change. [Online] Available at: http://www.enterprisedevelop.com/resources/pdf/EDG%20Sustainable%20Enterprise%20.pdf [Accessed November 28, 2013]. McDonough, W. & Braungart, M., 2002. Beyond the Triple Bottom Line. Designing for the Triple Top Line. [Online] Available at: http://dev.nl.epea-hamburg.org/sites/default/files-nl/Braungart%20%26%20McDonough%20%20Beyond%20Triple%20Bottom%20Line%20(abstract).pdf [Accessed November 28, 2013]. Slaper, T. F. & Hall, T. J., 2011. The Triple Bottom Line: What Is It and How Does It Work? The Triple Bottom Line Defined. [Online] Available at: http://www.ibrc.indiana.edu/ibr/2011/spring/pdfs/article2.pdf [Accessed November 28, 2013]. Vanclay, F., No Date. Impact Assessment and the Triple Bottom Line: Competing Pathways to Sustainability? Introduction. [Online] Available at: http://www.minerals.csiro.au/sd/pubs/Vanclay_Final.pdf [Accessed November 28, 2013]. Appendix Questionnaire 1. Classify your organisational goal relating to: a.) Social........................................................................................................................ b.) Environmental c.) Financial 2. What strategies have you adopted in support of your organisation towards the attainment of these goals? a.) Social........................................................................................................................ b.) Environmental c.) Financial 3. Did you experience any sort of conflict while managing the TBL factors in attaining your organisational objectives? 4. Do you think that the European Green Capital Award will encourage business owners/managers to embrace better initiatives in keeping with the TBL? How? 5. What benefits or disadvantages are likely to be experienced while embracing better initiatives in keeping with the TBL by your organisation? 6. Is the notion of TBL directly related with the sustainability of your operational performance and the organisational goal(s)? Read More