The Triple Bottom Line (3BT) Concept- Seth Goldman’s “Honest Tea.”
Seth Goldman gives a lot of emphasis on the aspect of taking a different trajectory in the way we do business. His leadership approach becomes highly coherent with the Triple Bottom Line (TBL) concept. The Triple Bottom Line concept holds highly on the aspect of sustainability of businesses. This concept raises the bar higher by getting off the yardstick of measuring business, organizational and institutional performance beyond the traditional measures of profits, shareholder value, and return on investment to include social and environmental dimensions as argued by Henriques& Richardson (2004). When the focus of business is on the comprehensive investment results, that is, with regards to performance along the interrelated aspects of profit, planet and people-the triple bottom line approach can be a very essential tool in supporting sustainability goals.
From the video, “How entrepreneurs can change society-the story of Honest Tea” Seth Goldman talks of the United States of America being the most advanced country in terms of technology, healthcare system, infrastructure among other aspects but still it isn’t the number one country in the world, instead in fall in number forty. This shows that the direction they have taken is not making anything sustainable, and therefore there is need to change how they do things, there need to change the direction they have been following all along. He further points out that when he asked the Chinese why they had didn’t build a bridgeon the organic tea garden was that the bridge would bring forth road which would result to infrastructure and thus pollution and thus not looking into the safety and health of the people and the planet.
The profit aspect of the business is also depicted from this video of “How entrepreneurs can change society” as Goldman says the business has grown big to be part of Coca-Cola Company, and not forgetting that it has delivered 26 times return to its original investors. The financial bottom line is the one aspect for all businesses. A look at the profit from the standpoint of triple bottom line is that the profits will empower and sustain the society as a whole (Bowden, Lane& Martin, 2001).
The second video on Dr. Woody’s interview with Seth Goldman, the President and TeaEO of Honest Tea points out that “Honest Tea” a beverage of fewer calories and less of sugar content. He is out to meet the sustainability of doing business especially from a different frontier, though, despite operating in a competitive market of beverages especially sugary ones, he is out to capture a market of less sugar beverage consumers.He says that the product is still tasteful and satisfying. His concern is the health lifestyle of the people consuming “Honest tea” and to make the business sustainable in the long run. He points out that in order to raise the nation’s competitiveness in terms of success there must a different approach we give to the way we interact with diet, nature among other aspects.
Goldman approach is further looking into the planet aspect of the three Ps. The Honest Tea is an organic beverage brand. This promotes the reduction of the business’ ecological footprint by enhancing environmental conservation and less of pollutants. The business carries it activities in the safest manner by producing products that are safe and healthy for the people and the planet (Fry &Nisiewicz, 2013).
Bowden, A. R., Lane, M. R., & Martin, J. H. (2001). Triple Bottom Line Risk Management: Enhancing Profit, Environmental Performance, and Community Benefits. New York: John Wiley & Sons.
Fry, L., &Nisiewicz, M. (2013). Maximizing the Triple Bottom Line Through Spiritual Leadership. Palo Alto: Stanford University Press.
Henriques, A., & Richardson, J. (2004). The Triple Bottom Line: Does It All Add Up. London: Earthscan.
Savitz, A. W., & Weber, K. (2013). Talent, transformation, and the triple bottom line: How companies can leverage human resources for sustainable growth. San Francisco: Jossey Bass, A Wiley Imprint.