“Triple Bottom Line” as “Sustainable Corporate Performance”: A Proposition for the Future

Fauzi, Hasan; Svensson, Göran; Rahman, Azhar Abdul

doi:10.3390/su2051345

Cited by 124 publications

(94 citation statements)

References 70 publications

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“…The outcome of management processes, from strategic planning to implementation of the plan, underpins the measurement of corporate performance (Fauzi et al, 2010). Gavrea et al (2011) noted the importance of measuring corporate performance in the following statement:…”

Section: Introductionmentioning

confidence: 99%

“…However, most corporate reports focus mainly on shareholders, thus reflecting the views of early economists such as Milton Friedman who opined 'that corporations should not confuse corporate issues with societal obligations, but rather focus on its core objective of profit maximization ' (Friedman, 1970). Fauzi et al (2010) noted the underlying limitation in defining corporate performance in terms of 'bottom line' (economic) reports in the following statement:…”

Section: Introductionmentioning

confidence: 99%

“…Financial performance is broken down into two subcategories: (i) market-based performance (e.g., stock price, dividend payout and earnings per share) and (ii) accounting-based performance (e.g., return on assets and return on equity). The concept of corporate performance in accounting literatures refers normally to financial aspects such as profit, return on assets (ROA) and economic value added (EVA), using the nick name of 'the bottom line' (Fauzi et al, 2010). Kaplan andNorton (1992, cited in Fauzi et al, 2010) coined the extended measurement of corporate performance as balanced scorecard, where the core idea is to balance the domination of financial and non-financial aspects in corporate performance.…”

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confidence: 99%

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Benefits of Triple Bottom Line Disclosures on Corporate Performance: An Exploratory Study of Corporate Stakeholders

Ekwueme¹,

Egbunike²,

Onyali³

2013

JMS

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Advocates of CSR argue that transparency and accountability are essential components of a successful sustainability strategy. In this context, sustainability reporting is one such tool for communicating organisational performance with respect to organisational CSR practices. This empirical paper examines the connection between such reporting practices and corporate performance from a stakeholder perspective. Using a sample of 141 respondents, comprising 21 corporate managers; 55 corporate employees and 65 consumers and investors, this study examined the connection between sustainability reporting and corporate performance. Four hypotheses were formulated and tested in the study. In addition to descriptive statistics, Kolmogorov-Smirnov (K-S), One Sample t-test and Multiple Regression Technique (MRT) were used in analyzing the primary data. The results of the data analysis showed a positive connection between sustainability reporting and corporate performance. Both consumers and investors were inclined to product purchase of green corporations. This would have the dual effect of increased market share and market capitalization of the companies. Employees were inclined to work in green corporations safeguarding their interests and healthy work environment. And corporate managers agreed that cost of recycling was generally cheaper than new purchase. Based on this, the study recommends the adoption of sustainability reports for organisations seeking sustainable corporate performance. The improved transparency and accountability levels of traditional financial reports through inclusion of TBL principles could serve as a labyrinth safeguarding corporations against legal hassle and surmounting stakeholder pressure. Thus, ultimately leading to improved market share, improved employee motivation and reduced labour turnover in such organisations.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

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Benefits of Triple Bottom Line Disclosures on Corporate Performance: An Exploratory Study of Corporate Stakeholders

Ekwueme¹,

Egbunike²,

Onyali³

2013

JMS

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“…Mitchell, Curtis and Davidson (2007) concluded in their study that TBL reporting can enable organizations to better manage their response to the sustainability challenges when TBL reporting is approached as iterative learning cycle. Fauzi, Svensson and Rahman (2010) pointed out the contribution of TBL as sustainable corporate performance is that it principally highlights the connection between current business and social orientations and forth-coming planet-orientation, which is a spectrum not previously addressed seriously from a business perspective either in practice or literature. Slaper and Hall (2011) pointed out that the concept of TBL can be used regionally by communities to encourage economic development growth in a sustainable manner.…”

Section: Literature Reviewmentioning

confidence: 99%

Corporate Triple Bottom Line Reporting: An Empirical Study on the Indian Listed Power Companies

Roy

Mitra

2015

SDMIMD

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Triple Bottom Line (TBL) approach is a proactive step in providing increased transparency and a broader framework for decision making. In this paper, we have considered listed companies of Bombay Stock Exchange (BSE) comprising BSE 500 index as our population. Considering time and resource constraints, it was decided to restrict the survey to only power generating companies (15 units) among those 500 companies. Annual reports/corporate social responsibility/sustainability reports for these 15 numbers of listed power companies were reviewed. For measuring the extent of corporate triple bottom line reporting in annual reports/corporate social responsibility reports/sustainability reports of the companies, we have constructed a weighted disclosure index based on the previous empirical studies. The study evaluated the combined corporate triple bottom line disclosure score value of the sample companies based on performance with respect to 3 primary indicators - environment, social and economic. The maximum score of corporate triple bottom line disclosure is high enough i.e. 77.3% and the minimum score of corporate triple bottom line disclosure is very low i.e. 22.6%. None of the sample power companies has attained more than 80% corporate triple bottom line disclosure score; on the contrary 40% companies have attained less than 40% corporate triple bottom line disclosure score.

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“…Banccasurance, Agency banking, Diaspora banking, Digital banking, Borderless banking, Electronic money transfers among others are some of the ways banks in Kenya have diversified their products to enhance their competitive performance. According to Fauzi, Svensson & Rahman (2010) competitive performance is evident an organization's achievement as reflected in its superior profitability relative to the industry's benchmark. Irrespective of the diversification strategy a bank adopts, when the diversification enhances competitive performance, shareholders and other stakeholders are perceived to be the major beneficiaries of the competitiveness brought about by the diversification strategies.…”

Section: Background Of the Studymentioning

confidence: 99%

Assessment of Use of Diversification Strategy in Enhancing Competitive Performance at Equity Bank, Kenya

Mwara¹,

Okello²

2016

IJFBR

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Abstract:Banks and other financial institutions operate in a dynamic environment where opportunities and challenges arise in equal measure. A critical factor that presents challenges and opportunities for the banks and other financial institutions is competition. To beat competitors in the dynamic market and stay abreast with the ever changing market demands, it is imperative for banks to rethink, rework and adjust their diversification strategies appropriately in order to remain relevant in the market. A diversification strategy helps organizations to spread portfolio risks by combining a variety of investments. In fact, organizations that seeks to survive various business cycles or to stay ahead of competition look for ways to diversify and in return, grow, survive and perform well in the long term. This study sought to assess the use of diversification strategy in enhancing competitive performance at Equity Bank Kenya. The study was based on; Technology Acceptance Model, Diversification Strategy Model and the Systems Theory. To achieve the objective of the study, the researcher sought to establish how banccasurance, electronic money transfer and agency banking affects competitive performance of the bank. The researcher used a survey and a descriptive study design. The population of the study included branch managers, corporate managers and divisional managers in charge of Banccassurance, electronic money transfers and Agency banking at Equity Bank while the study sample was selected from the said population by a simple random sampling technique. Data was collected using structured questionnaires that were administered through drop and pick technique. The collected data was analyzed using SPSS version 20. A linear regression analysis was conducted to guide inferences based on diversification strategies in relation to competitive performance of Equity Bank Kenya. The results were presented using the tables appropriately. The results of the study implied that the first null hypothesis was not rejected the second null hypothesis was not rejected, the third null hypothesis was not rejected. The study findings further indicated that the competitive performance of equity bank was not significantly influenced by 0.342 bancassurance, -0.317 electronic money transfers, -0.080 agency banking. However, the study findings indicated that the diversification strategies jointly influenced the competitive performance of Equity Bank (t = -3.922; p < 0.05). It was therefore recommended that bank should innovate its bancassurance products and electronic money transfer systems, motivate employees better and use appropriate technologies that the clientele find to be useful and easy to use.

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“Triple Bottom Line” as “Sustainable Corporate Performance”: A Proposition for the Future

Cited by 124 publications

References 70 publications

Benefits of Triple Bottom Line Disclosures on Corporate Performance: An Exploratory Study of Corporate Stakeholders

Benefits of Triple Bottom Line Disclosures on Corporate Performance: An Exploratory Study of Corporate Stakeholders

Corporate Triple Bottom Line Reporting: An Empirical Study on the Indian Listed Power Companies

Assessment of Use of Diversification Strategy in Enhancing Competitive Performance at Equity Bank, Kenya

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