by Nextlife's Jeff Rosenholtz

“Triple Bottom Line” (also commonly referred to as “People, Planet, Profit”) is a term that was coined in 1994 by John Elkington, an entrepreneur and environmental consultant who was looking for a way to relate to businesses and impress upon them the importance of becoming sustainable.

Today, the Triple Bottom Line Philosophy is an operating approach used by businesses to address their Social, Environmental, and Economic impact. The Triple Bottom Line is at the heart of the “Green” revolution and, as businesses of all types make their transition to sustainability, a widely held misconception is that “Green” is expensive. Nothing could be further from the truth.

A recent study by the Retail Industry Leaders Association shows that the primary reasons retailers are now embracing environmentally sound business practices are because of the cost reductions benefits (such as energy) as well as the promotion of a unique brand identity to consumers. In addition, the study also stated that one of the most significant reasons is that 80% of retailers surveyed also said that their customers expect them to be making positive changes for the environment.

In order for environmental responsibility to truly take hold and not “fad” out, there must be a positive economic and social incentive to the establishments making the change. These incentives should not only come through governmental incentives, such as rebates, which are not long term and are “unsustainable” in their own right, but through efficiencies in operations with reduced production expenses and improved social impacts that help to provide quarterly business profits.

The more educated a “green” consumer is, the more they understand this concept. Then, they “return the favor” by purchasing products that are better for the environment and supporting the businesses that are making these changes. A great example of a company that has changed customer perception is Clorox. Now most people don’t think of detergents and bleaches as being good for the environment, however Clorox has made significant environmental changes including the introduction of their Green Works line of products…and those changes have paid off. A recent Image Power survey showed that the top green brand in the U.S. was Clorox Green Works. It just goes to show that when businesses set their sights on good corporate citizenship and sustainability, people take notice and are there to rally around them. Kudos to Clorox for Green Works and all of their other environmental initiatives. Clorox gets it. Does your business?