How Can Technology Companies Benefit from a Triple Bottom Line?

The Nobel Prize winner and pillar Milton Friedman of the Chicago School of Economics once stated that a company’s sole responsibility lies with its shareholders. In the 1970s, he defined his “Friedman doctrine” in the New York Times, writing, “Entrepreneurship has to increase profits.”

Since then, a new way of thinking has emerged that encourages businesses to value stakeholders rather than shareholders. In an era when social and environmental uncertainty is having a serious impact on economic conditions, social and environmental outcomes should be incorporated into your company’s success metrics. Taking into account a total social cost-benefit analysis as well as additional numbers, this is what John Elkington referred to as the triple result.

A course on behavioural science theories that shape and impact organisations was one of the most valuable things I learned in Cambridge. Most businesses fail not because of a poor product, but because of a poor corporate culture. When an organization’s culture and leadership are not integrated from the top, objectives and people become misaligned.

So, how do we fix a broken organisational culture? 

Today’s organisations must recognise and comprehend that success extends beyond the profit and loss statements that they reflect. In an age when technology companies can disrupt, change, and improve people’s lives, it may be time to reconsider how your company views the bottom line.

Triple Bottom Line

Looking at your business’s triple endpoint – in addition to financial results, social, environmental, and economic results – will not only ensure financial stability, but will also ensure long-term sustainability.

The three-pronged theory divides business success into three categories known as the three “P’s”: people, planet, and profit. Companies that embrace this consider how their operations affect their employees, their supporting communities, and their environmental impact – from carbon footprints to resource use and waste.

That is not to say that profit and loss statements should be ignored; cash flow is critical, and businesses must still generate revenue. It does, however, imply that, in addition to financial results, your company requires a social purpose.

How can technology firms be a positive force?

In an era of growing concern about privacy, security, and data ethics around the world, technology and other social issues affecting communities are in a unique position to address these issues, bringing about positive and long-term change while pursuing business objectives. Here are some examples of how we used it at SQREEM.

Take a stand for something. Your company should stand for more than just profit. Determine what is important to you and your stakeholders, and consider the company’s role in society. Do you care about accessibility, are you a transportation technology company, or do you want to improve people’s lives? Do you have easy access?

We have committed to keeping SQREEM as an AI-ethical company. Our AI is still GDPR-compliant and cookie-free. By demonstrating real-world applications of our technology in the Covid 19 era, such as fraud detection and other public service activities, we have committed to using AI for good. Begin with your core offerings and consider which ones can be sacrificed for the greater good.

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