Key Relationships Affect Your Bottom Line

Despite differences about what it takes to be sustainable, nearly everyone acknowledges that three influential, and often competing factors  –  social, economic, and environmental demands  – require serious attention. In a small community like the Napa Valley, where everything and everyone is somehow connected, unbalanced – and, therefore, unhealthy – relationships among these three can cause irreversible damage, especially for businesses.

How does a business leader avoid that? By embracing a principle called the triple bottom line (coined in 1997 and also known as TBL or 3BL). TBL focuses on the benefits of protecting people, planet, and profits. No matter how large or small a business, the crux of TBL is responsibility to stakeholders, not just shareholders.

One way to figure out who stakeholders are is to perform a life cycle analysis. For example, consider the newspaper or computer screen you are reading. Now think of everything it took – from educating and paying the labor force to producing the materials involved – to get this article onto that medium. Look at each component of the process, recognizing each stakeholder – past, present, and future. Amazing how many stakeholder relationships each business process has, isn’t it? How these relationships develop is largely up to the leader of the business. 

Unfortunately, many business leaders harbor the misconception that becoming a sustainable or “green” business is expensive. Sure, like anything else, it could be. But it doesn’t have to be. There are many things that you can do – right now – today – to improve your TBL that don’t cost a dime but have the potential to save you a substantial amount of cash. An easy place to start is right-sizing. What equipment does your business really need? Could you achieve the same outcome without all the bells and whistles? Are you paying for more than you need? Or could you allocate your budget more wisely? Look at every aspect of your business with a “show me the money” attitude. The money you save will help you better weather economic storms and it will help you create a thriving business. Or household.

Looking forward to 2012, we can honor existing relationships, make new and meaningful ones, and give special attention to the ones that need tweaking. Give back whenever and whatever we can. Keep our money local. Volunteer. Donate. Eliminate waste at every opportunity. And practice TBL. 

T.R. Vierra owns eco-Organize, a Napa based business providing practical solutions for creating more sustainable businesses since 2007. T.R. can be reached at 707-258-8338 or eco-organize@sbcglobal.net. Learn more at eco-orgainze.com.

This article was first published in the Napa Valley Register on 12/20/11. Click here to see it.