The document discusses reporting on social and environmental impacts using a triple bottom line framework. It explains that a triple bottom line looks at an organization's economic, social and environmental performance. Key points covered include the importance of accountability, prioritizing stakeholders, tools for social accounting, and examples of metrics used to measure the three parts of a triple bottom line.
2. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Agenda
• Accountability
– Social Accounting
– Critical Questions
• Prioritising Stakeholders
– Accountability Map
• The Triple Bottom Line
• Case Study Exercise
• Other Social Accounting Tools
• Criteria for Presentation
• Urban Outreach Ministries’ Organic Gardens
(Masters) HBS 102 today!
3. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Accountability
“subject to giving an account: answerable.”
- Why do social enterprises have to be accountable?
4. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Social Accounting
• Proving – demonstrating what we have done and
achieved (performance and impact) to all stakeholders
(accountability)
• Our Objectives and Their Objectives – the 360 degree
picture
• Common or Shared Objectives – making comparisons
• Improving – social enterprise plans
• “the process of communicating the social and
environmental effects of organizations' economic
actions to particular interest groups within society and
to society at large.”
5. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Stakeholders
• A person, group, or organization that has direct or
indirect stake in an organization because it can affect
or be affected by the organization's
actions, objectives, and policies.
• Key stakeholders in a business organization include
creditors, customers, directors, employees, governme
nt (and its agencies), owners
(shareholders), suppliers, unions, and the community
from which the business draws its resources.
6. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Stakeholders
Stakeholders: Present
And Future
Customers, Indigen
ous & Vulnerable
Peoples & Media &
Public
Shareholders &
Investors
Employees
Governmental
Agencies & Law
Enforcement &
Elected Officials
Suppliers &
Distributors &
Transportation
Agencies
Industry Partners &
NGOs &
Associations
7. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Critical Questions
• Are all of our core players committed to our central
mission?
• Are we truly effective in our work?
• Are we efficient in our application of resources?
• Do we have a responsible funding strategy that is
consistent with our stage of organisational development?
• Do we have a management information system in place
that is appropriate for our organisation’s future?
• Does our work have an appropriate impact?
• Do our words reflect the reality of our actions?
8. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Prioritising Stakeholders
• What is the extent of their prior contribution to your
organisation?
• What is the extent to which they may be valuable to
poor performance or mismanagement on your part?
Who is most at risk if your perform badly? How well-
positioned are these groups or individuals to “protect”
themselves from this risk?
• What is the importance to you of their future support?
9. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Accountability Map
10. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
The Triple Bottom Line
• Disclosure (reporting) is
a key part of doing
sustainable business.
• Sustainability reporting is
broader in scope than
traditional financial
reporting.
• The Triple Bottom Line
(TBL) is one way to
report on sustainable
business activity.
• TBL defines
sustainability in terms of
three separate elements:
economic, environmental
, and social perspectives
of operations.
http://www.youtube.com/watch?v=5qWVkN6UPHc
11. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
What is the Triple Bottom Line (TBL)?
Recognizes need to consider
economic, social, and environmental business
decisions
People, Planet, Profit • Equity, Ecology, Economy •
Social Equity, Environment, Economy
12. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Three Elements of the
Triple Bottom Line
Economy – reflects activities related to shaping
demand for products and services, employee
compensation, community contributions, local
procurement policies, and other monetary issues
related to company activities.
Can you think of some indicators that can be
used to measure the Economic Bottom Line?
13. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Three Elements of the
Triple Bottom Line
Society - reflects activities in shaping local, national
and international public policy, equality, treatment of
minorities, employee issues and public concern. That
is, organizational citizenship.
Can you think of some indicators that can be
used to measure the Societal Bottom Line?
14. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Three Elements of the
Triple Bottom Line
Environment – reflects the impact made through
processes, products or services that affect the
environment. These may include
air, water, land, natural resources, flora, fauna and
human health.
Can you think of some indicators that can be
used to measure the Environmental Bottom Line?
15. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Typical Measures of the
Triple Bottom Line
16. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Example of a Triple Bottom Line
17. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Examples of TBL Measures
18. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Examples of TBL Measures
19. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Case Study: Gap Adventures
• http://www.youtube.com/watch?v=xbeUftMoFUQ
• Company Website
• http://www.gapadventures.com/
• Task:
• Create a list of TBL measures for Gap Adventures
20. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Triple Bottom Line Report
21. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Benefits of Triple Bottom Line Reporting
Businesses who report sustainability outcomes have the
opportunity to achieve a competitive advantage through:
• increased trust levels from consumers;
• increased credibility,
• potential to reduce cost of supplies through detailed
analysis;
• potential to be viewed as a superior investment choice, and
• increased employee satisfaction and attraction of high
calibre employees.
• Example – Vancouver 2010 Sustainability Report
– http://www.vancouver2010.com/more-2010-
information/sustainability/reports-and-
resources/sustainability-report/
22. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Other Social Accounting Tools
• Quality and Impact Toolkit
(www.proveandimprove.org)
• Key co-operative performance indicators
• Balanced score-card for social enterprises
• Performance dashboard for social firms
• Prove it – social capital
• Social capital stock-take
23. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Other Social Accounting Tools
• Social Return on Investment
• Measuring Economic Impact
• LM3 – the Money Trail
• Green Office Check-list
• Development Trusts’ health-check
• SAN: www.socialauditnetwork.org.uk
24. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Presentation – March 18, 2010
• Each pair will be given 5 minutes to deliver the team
recommendation for the social enterprise where they
had the placement.
• Counts for 30% (Undergrad)/25% (Masters) of your
final mark
• What you should discuss:
– Overview of your social enterprise – what they do, who their
customers are, main products/services
– Briefly talk about the problem and your analysis of it
– Discuss 3 alternatives and rationalise why you chose your
solution.
25. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Urban Outreach Gardens:
Organic Gardens
• Red Flags
– South Baldwin Fitness and the Organic Gardens are two
different ventures.
– There is not much indication that the exec. Director will slow
down long enough to do the critical capacity building and
organisational planning necessary to implement a successful
social enterprise strategy for Urban Outreach Ministries.
– There may be tax and legal issues. Does Organic Gardens fit
adequately under the umbrella of UOM? Will it need to be a
separate entity?
– Probably need to talk about using “profits” to grow the garden
– provide more of mission of the garden. The issue was not
addressed adequately.
26. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Urban Outreach Gardens:
Organic Gardens
• Red Flags
– If the proposed organisation is a triple bottom line, is the
board supportive of the project? Are employees/staff in
support of the idea?
– Executive director may be too entrepreneurial for UOM.
– There is no solid information that the garden would work.
Interview other organic gardens. Are the productivity figures
meaningful?
– What kind of contract is the executive director on? Is there any
provision for succession?
– Are there other sources of revenue, including fundraising, that
would be better use of resources – greater return in the long
run?
27. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Urban Outreach Gardens:
Organic Gardens
• Red Flags
– What is the opportunity cost of the Organic Gardens project?
How receptive will the community be? Will it have same
outcomes as predicted? What, if anything will have to be
given up to pursue the Organic Gardens project?
– Consider sustainable operation as a financial goal. Is it
realistic that property is always donated?
– Is it likely to be able to get the $200000 donated to make
$38000 profit? More clarification is needed on the costs and
benefits.
– Organic garden may take years to get “organic” designation.
What impact would that have on the project?
– It is unclear as to the actual demand for organic garden. What
are the trends nationally and locally?
28. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
What needs to be done now?
• Strategic Planning
• Board Building
• Synergising the two organisations together
• Consider – is it realistic to assume donation of $200K
and land costs?
• Are there better funding sources tan through
entreprenerial activity?
• Will the board of directors be committed to the values
of the executive director?
29. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
Need in the Market
• Needs more scrutiny
– What is the need?
– How big is it?
– How long will it be an unmet need?
– Will Organic Gardens be able to capitalise on that need?
• Are there other needs that can be met with an organic
garden?
30. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line
As a consultant….
• Strategic Planning
– Urban Outreach Ministries is expanding on a fragile base and
immature infrastrcucture.
– Build capacity (Board, employees)
– Vision
– Resources needed (skills, abilities, knowledge and contacts)
– What measures of success should we use? (TBL!)
– Who are our stakeholders?
– Sources of funds and expenditures