Tech for Good, Force for Good: Triple Bottom Line Approach

A traditional understanding of businesses has primarily focused on profit maximization and doesn’t consider the bigger picture. However, in a world fraught with growing inequalities and scarce, and often unequally distributed resources to combat the major crisis in the world, where is an organization’s role? Our society is systematically organized in a way that allows organizations significantly more access and power to create impact. In this context, we need to examine, what exactly does ‘tech for good’ mean and what are the real-life applications?

Most people don’t realize that organizations don’t fail because of poor products or ideas but a poor organizational culture where goals and people are misaligned. Technology has for the longest time pushed the boundaries of human imagination as well as sparked fear of the adverse effects. Inherently, technology is neither good nor bad and it is dependant on how the technology is used.?

In this blog, we will consider John Elkington’s Triple bottom line (3P Focus – People, Planet, Profit))which looks beyond the figures and considers a holistic societal cost-benefit analysis. In today’s interconnected world, businesses should look beyond their immediate/direct stakeholders to a broader group that have an influence.?

People, the social equity bottom line

In today’s world, people question the notion of productivity, its relation to well-being and the centrality of work within their lives. In this context, how does an organization, with seemingly competing goals of higher productivity, function to stay relevant and excel in relation to well-being? The answer is simple and was answered almost a hundred years ago-invest in people. The human relations movement in the behavioural sciences, from the 1930s, has been promoting a culture where people are treated with value and thought of as central investments for any organization.?

Investing in people can occur in small ways such as investing in their learnings and building their skills. Cultivating an environment that provides a nurturing ground for their growth and development, where a? growth mindset is promoted and encouraged. On the other hand, investing in people can also be about aligning an organization's values for the greater good, i.e. bringing about social change. When employees resonate with the company’s goals, there are markedly higher employee metrics, such as engagement and satisfaction.?

Organizations can harness their tech to empower society in multiple ways-technology can be employed to serve the underprivileged by providing lower costs and more efficient operations; it can also help people garner equal opportunities by revealing pay biases and income gaps; tech can even be employed to provide solutions for the burning issues in today’s world. Satya Nadella often alludes to the organization’s societal contract and how at the centre of the business unit should be the key ideas of inclusivity and accessibility. He believes that the true power of technology lies in empowering individuals to perform and engage better.?

Planet, the environment bottom line

According to the triple bottom line model, the second P stands for the Planet. The increasing depletion of natural resources and climate change calls for immediate action that has a vast impact. Key focus areas for organizations have been waste reduction and cost efficiency in production. Technology plays a key role to provide sustainable solutions and models to combat the various environmental issues facing our world. Cities are also using technologies to optimize waste pickup. In Seoul, for example, municipal authorities equipped garbage bins with RFID sensors that weigh trash and generate a bill for each household, a scheme known as “pay as you throw.” Technology can help improve energy efficiency, including that of its own, by reducing greenhouse gas emissions. Furthermore, technology can help preserve biodiversity by innovating alternative, artificial food.?

According to Microsoft’s 2020 Environment sustainability report, Microsoft has been successful in removing 1.3 million metric tons of carbon removal, replaced near 20 water replenishment projects, and diverted about 60K tons of waste from landfills by introducing smart initiatives. Among its key principles are to the ground practices in science, and take responsibility for our footprint. For the coming years, MS has set the goal of being plans to carbon negative, be water positive and zero waste by 2030.?

Lastly, staying true to its “people” goals, MS also aims to empower other people and organizations in their journey of environmental sustainability. By promoting Azure cloud, and aiding digital transformation over the globe, MS has been empowering individuals with driving innovation.?

Profit, the economic bottom line

The new idea of profit, in the triple bottom framework, challenges the transitional understanding of money gained in terms of production. Companies will have to reorient the way they view profit. A better way to analyze would be to pose the question What do your stakeholders value the most? While remembering that shareholders aren’t the only stakeholders. Furthermore, what role can your organization play in society? These are important questions to ask.?

All organizations have an inherent capacity to turn things for the greater good. One can begin the journey by beginning to reflect which among these can be channelled toward the greater good. This quest should be impacted by a genuine interest in sustainability initiatives, brand and societal impact, the benefits include long term growth. A McKinsey report shows that adopting technology with a focus on innovation and proactive transition management could lift both GDP and welfare growth.

A triple-bottom strategy accounts for more than just the shareholders: this includes employers, customers, suppliers and communities. By looking at the bigger picture, tech companies can ensure their longevity and become a force for good. In this blog, we have considered majorly, how the triple bottom line approach allows organizations to create impact at the micro level for their employees and at the macro level for the society at large.?

What are your thoughts on reevaluating the goals of an organization to take up the social leadership goal? Be sure to share your thoughts in the comments section below. And to read more about our sustainability initiatives, and what MS has to offer to help your journey, visit our blogs here. https://blogs.microsoft.com/green/?