Difference between revisions of "Sustainable Business Learning Community Conversations, July 2013 - August 2013"
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'''Topic today: Different needs addressed by triple bottom line businesses differ vs. traditional businesses''' | '''Topic today: Different needs addressed by triple bottom line businesses differ vs. traditional businesses''' | ||
− | * Traditional business takes advantage of immediate opportunities. Triple bottom line businesses are stewards of a larger need/problem, thinking about its relationship with a particular need. | + | * Traditional business takes advantage of immediate opportunities in the market. Triple bottom line businesses are stewards of a larger need/problem, thinking about its relationship with a particular need. |
* '''3D businesses are going after bigger systemic problems''' rather than immediate short term needs or problems. There is a purpose driven mentality. Traditional entrepreneur might just have a goal of selling more toys, but not meeting a real systemic need. | * '''3D businesses are going after bigger systemic problems''' rather than immediate short term needs or problems. There is a purpose driven mentality. Traditional entrepreneur might just have a goal of selling more toys, but not meeting a real systemic need. |
Revision as of 01:46, 18 July 2013
July 11, 2013 Topic: Triple Bottom Line Business vs. Conventional Business
Comments from last week: Competition and Cooperation
The big question: Is there good competition - can it ever be good or helpful?
Big realization is that the role that competition plays in a sustainable businesses is not so much focused on the competitor, rather than focused on the need that is in the community, and your ability to meet that need and changing/evolving needs as best as possible. The better you can do that, the better you can compete with other businesses.
Opportunity: Is your business focused on benefitting from short term opportunities or are you thinking about meeting needs over the long term? A sustainable business will anticipate where things are going and what your community will need in the future?
Topic today: Different needs addressed by triple bottom line businesses differ vs. traditional businesses
- Traditional business takes advantage of immediate opportunities in the market. Triple bottom line businesses are stewards of a larger need/problem, thinking about its relationship with a particular need.
- 3D businesses are going after bigger systemic problems rather than immediate short term needs or problems. There is a purpose driven mentality. Traditional entrepreneur might just have a goal of selling more toys, but not meeting a real systemic need.
- Accountability: Triple bottom line businesses hold themselves accountable for things beyond their bottom line and customer needs. They are accountable for their business's impact on water, on community, on earth, energy, etc. When you only focus on the financial bottom line, the costs can be very large, negative impact. This is where sustainable businesses are different: they have a systems perspective - accountability goes beyond making money.
For a triple bottom line business, sustainability is what they do. It is integrated into the primary action of their business - it is part of what they do everyday, of how they conduct their work. It is not about any philanthropic work that they might do after business hours.
There is an assumption that the pursuit of profit, of a single bottom line, is the most advantageous for shareholders. But there is no proof that this is true and many examples that prove just the opposite:
- Interface (flooring company) is a solidly triple bottom line business and they are dominating the market and, as a result, making a lot of money for their shareholders. Read about other examples:
- Patagonia
- New Belgium Beer
- Fetzer wine
- Stonyfield Yogurt
These pioneer companies, who developed a 3D model, actually began creating a need for more of these companies. Once, single bottom line businesses were acceptable, but they are becoming less and less so today. The 3D approach is actually more profitable in the end and these kinds of businesses are beginning to dominate their markets.
Comments from the group:
- Nick doesn't see any real difference between 3D and traditional businesses in the sense that all businesses are pursuing needs. But how do we identify and define those needs? Previous belief in the business world was in the existence of the "invisible hand" : pursue profit and everything else will take care of itself - take care of business, make sure it's profitable, and everything else will be ok. But the 3D model says that there is no invisible hand, that businesses must consider the wider context of how they operate and the needs of their community and the earth.
- We realize that ALL businesses are triple bottom line businesses. Each business will have a financial, environmental and community impact. The question is, how aware, connected or concerned are business leaders with all three of these areas of impact? A good 3D business will recognize this and try to mitigate risk and negative impact in all areas.
- Business now has to benefit society because governments can no longer perform those functions - they have to have a social conscience, and and environmental conscience.
- Doug: We the people have to take this on. Politicians can't make long term decisions because they simply won't be re-elected. Our society has taught us to think short term rather than long term - we want immediate gratification, no sacrifices, and the politicians who get elected are those who offer that to people.
- Harvard business review: Average CEO life at a company is only 3-5 years, so they tend to come in and look at the short term - just think about how to boost profit as quickly as possible, they are in and out.
- There is a shifting set of beliefs about an economy that works for the whole. If we (business leaders) believe something, it will have an impact on our decision making and the actions we take. Story: Woman walks into the GG under construction and says she doesn't know how any business can survive today without taking into consideration the environment. Many people are trying to figure out what this new shift in thinking means to them and their businesses.