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Triple Bottom Line: Manufacturing Industry vs Service Industry
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Triple Bottom Line: Manufacturing Industry vs Service Industry
Profit is the bottom line of any business operation. However, the triple bottom line (TBL)
framework urges business leaders to focus not only on profits but also on environmental and
social concerns such as people and the planet. Applying the TBL framework in the
manufacturing industry differs from integrating it into the service industry (Rashidi et al., 2020).
Manufacturing industries produce for customers, for example, bakeries and candy stores, while
service industries concentrate on offering services to customers, for instance, banking. The
strategic aim for both the manufacturing and service industries is to provide the best and earn
more profits. Therefore, applying the TBL framework in these two industries brings similarities
and differences because business leaders must evaluate how the business affects those working
in the companies and the environment.
There are similarities when applying the framework in both industries. Business owners
in these industries must evaluate the meaning of success. They can use B Impact Assessment to
determine their TBL's value. The assessment evaluates factors like workers, environment as well
as governance. Both sectors have social responsibility; therefore, the results of TBL value can
affect how the public perceives the organizations (Green Buoy Consulting, 2021). Manufacturing
company does not sell their products to consumers directly. The outcomes might discourage
other businesses from making purchases due to the negative reputation it might have.
Some differences exist when implementing the TBL framework in the manufacturing and
service industry. The manufacturing sector evaluations mainly focus on the planet and
governance because they manufacture items and employ a variety of machinery that impact the
environment (Braccini & Margherita, 2018). The other reason is that manufacturing industries
must follow strict laws. In contrast, the service industry assessment mainly focuses on people.
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The primary reason is that service companies use people to deliver their services, whereas
manufacturing companies use raw materials to create finished goods. The service industry needs
to cater to employees' needs to enhance the company's productivity.
The appropriate strategy to implement the TBL framework is to write down all activities
of profit, people, and the planet. Both sectors would need to assess each department before they
could list the activities, products or services sold or offered and leads that are most vital in profit.
People think about the employee benefits such as health insurance and leave benefits (Rashidi et
al., 2020). For the planet, consider how an employee's work might influence the environment,
including the quantity of electricity used in the office or hazardous wastes and how to dispose of
them. For-profit, the organization can provide information about growth in annual revenue,
proven risk management, and governance guidelines.
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References
Braccini, A. M., & Margherita, E. G. (2018). Exploring organizational sustainability of industry
4.0 under the triple bottom line: The case of a manufacturing
company. Sustainability, 11(1), 36.
Green Buoy Consulting (2021, February 24). How you can implement the triple bottom line.
Retrieved from: https://www.greenbuoyconsulting.com/blog/how-you-can-implementthe-triple-bottom-line
Rashidi, K., Noorizadeh, A., Kannan, D., & Cullinane, K. (2020). Applying the triple bottom line
in sustainable supplier selection: A meta-review of the state-of-the-art. Journal of
Cleaner Production, 269, 122001.