Stakeholder theory and triple bottom line

The two theories that we have looked at each seek to moderate and direct the corporation by examining the conditions in which a business exists. The next two theories are somewhat different. They see the corporation as an entity with moral obligations that are not connected to the economic obligations that Friedman emphasizes. The aptly named CSR view is that corporations are members of the moral community. Instead of separating them from society as Friedman would, they are viewed as citizens in the world. They have responsibilities that are analogous to those of other members of the moral community, and these responsibilities fall into four groups:.
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Stakeholder theory

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Stakeholder theory - Wikipedia

The stakeholder theory is a theory of organizational management and business ethics that accounts for multiple constituencies impacted by business entities like employees, suppliers, local communities, creditors, and others. The stakeholder view of strategy integrates both a resource-based view and a market-based view, and adds a socio-political level. One common version of stakeholder theory seeks to define the specific stakeholders of a company the normative theory of stakeholder identification and then examine the conditions under which managers treat these parties as stakeholders the descriptive theory of stakeholder salience. In fields such as law, management, and human resources, stakeholder theory succeeded in challenging the usual analysis frameworks, by suggesting that stakeholders' needs should be put at the beginning of any action.
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Triple bottom line

The triple bottom line or " TBL ", " 3BL ", or " People, Planet, Profit " captures an expanded spectrum of values and criteria for measuring organizational and societal success; economic, environmental and social. Similar UN standards apply to natural capital and human capital measurement to assist in measurements required by TBL, e. In the private sector , a commitment to corporate social responsibility implies a commitment to some form of TBL reporting.
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The triple bottom line or otherwise noted as TBL or 3BL is an accounting framework with three parts: social, environmental or ecological and financial. Some organizations have adopted the TBL framework to evaluate their performance in a broader perspective to create greater business value. In traditional business accounting and common usage, the " bottom line " refers to either the "profit" or "loss", which is usually recorded at the very bottom line on a statement of revenue and expenses. Over the last 50 years, environmentalists and social justice advocates have struggled to bring a broader definition of bottom line into public consciousness by introducing full cost accounting.
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