What does the “double bottom line” mean?

The double lower line is a type of measurement that concerns not only the amount of financial profit or loss that the company keeps in a defined period of time, but also the level of the positive social impact that it does business within the same time frame. This approach makes it possible to assess the impact that the socially responsible enterprise on the market on which it operates on the community where the company is founded. The public and private sector organizations can use this approach to measure financial profitability with regard to social impact.

The double lower line assessment is particularly important for businesses that want to function in a way that supports some areas of social responsibility. For example, a company that is interested in promoting the idea of ​​reducing industrial traces on the environmental air and water pollution. Although this approach may mean temporary reduction of cash gains, activity benefits the surrounding community and can affect multiple consumers who share similar environmental concernsUPU of the company's products.

Although there are certainly cash benefits for the company's evaluation in terms of double lower line, this approach can also be a tool that helps to ensure the longevity of business. There is an emphasis not only on providing a positive social impact on the community, but also on building a corporate culture that supports internal procedures that strengthen the wider social impact. This helps to create some thinking in business, which in turn facilitates the structuring of policies and procedures that ensure that the enterprise will be faithful to its social conscience for a long time.

employment of a double lower line can generate a number of benefits for all sizes. Consumers who identify with the social objectives of society will more often recommend products to others in their social networks, even if they decide to buy these products themselves. Access Double LowerThe line can also result in excellent public relations, which helps to expand the good print that customers generate on behalf of a social conscious society. If the company is able to cope with the use of its profits with the desire to be socially responsible, the end result may be beneficial for the company, its customers and any community that somehow affect business efforts.