Numerous business people and entrepreneurs come from worldwide with varied dreams and ambitions. The only thing they share in common is the yearning to build a highly profitable business. While some might take inspiration from other leading leaders, some go for adopting a framework called the 3P framework. It consists of People, Planet, and Profit. These 3 elements govern the long-term viability of an organization.
Modern businesses are held accountable for their actions and decisions. They are supposed to take responsibility for whatever they do socially and environmentally. The 3P framework might feel like a fresh concept, but it has been there since the 1990s. Let’s learn all about the 3P framework here:
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What is the 3P framework?
John Elkington developed the 3P framework; the term also goes by the name of “Triple Bottom Line” of People, Planet, and Profit.
To roughly paraphrase Elkington, who coined the term, the triple bottom line is a framework of sustainability that analyses an organization’s social, environmental, and economic impact. He thought that the main reason for the creation of the 3P framework was to help businesses attain profit by taking care of all the economic, social, and environmental factors. Let us now learn these 3 terms (People, Planet, and Profit) one by one:
- People: This part of the 3P framework includes all the stakeholders and shareholders involved in the function of the company. They might be employees, customers, clients, families, or communities;
- Planet: Here, any organization that functions is responsible for taking care of the natural environment. This encompasses the reduction of carbon footprint, planting trees, decreasing the use of toxic materials, etc. It also includes them actively taking part in resorting to the damage done by pollution;
- Profit: This part of the 3P framework encompasses an organization’s negative or positive influence on a national and global scale. The creation of jobs, driving innovation, creating wealth, and paying taxes are some of the factors in the profit part.
At its core, the 3P framework is all about motivating companies to think beyond the conventional model and make an attempt to take in expansive influences of their functions on society and the natural environment.
How is the 3P Framework related to the Triple Bottom Line?
The Triple Bottom Line is a concept that encourages companies to consider People, Planet, and Profit before making any decision. The 3P framework, too, dwells in this school of thought. So, it is safe to say that the 3P framework is a sophisticated extension of the Triple Bottom Line. Both of them highlight the importance of connecting the 3Ps.
The 3P framework and the Triple Bottom Line also share a common objective of motivating companies to promote sustainable development by being more responsible for their actions that have an impact on the world and the environment.
The Three Bottom Lines are as follows: People (social), Planet (environmental), and Profit (economic). So, both of these frameworks gauge an organization not only in the context of monetary performance but also in terms of environmental and social performance.
In its totality, the 3P framework shares its principles and philosophy a lot in common with the Triple Bottom Line. Both of these approaches highlight the importance of considering the social and environmental factors, not just monetary ones, for a better future for the organization.
Benefits of implementing the 3P framework
To enforce the 3P framework, an organization needs to have an integrated and holistic plan for its business operations. It needs to ensure that environmental and social considerations are implanted in the process of decision-making. Let’s take a look at the benefits of implementing the 3P framework:
1. Stakeholders and shareholder engagement: When a business entity prioritizes people, it transcends the boundaries of limitations. Companies can structure a solid relationship with their respective stakeholders by caring for the well-being of its employees, communities, and families.
2. Environmental sustainability: The “Planet” part in the 3P framework highlights the importance of minimizing environmental impact. Organizations that take an active part in reducing the carbon footprint and planting more trees attract more consumers who are becoming planet-conscious day by day.
3. Staying one step ahead: These days, competition is everything. If a business can’t innovate itself over time, it automatically fades into oblivion. Organizations that consider the 3Ps will have a competitive edge. When social and environmental factors are considered in addition to economic ones, they may bump into new avenues of growth and opportunities. This, in turn, will help them in creating a better marketing strategy.
4. Business feasibility: Long-term success is easier to achieve when companies balance social and environmental factors in their daily decision-making. A more sustainable business model comes when the three profits are balanced with the rest of the P’s.
5. Risk minimization: Organisations can handle risks more effectively when they take care of the 3Ps: people, planet, and profit. When the present economic situation poses uncertainty, companies that have balanced the 3Ps can stand tall amid the issue and alleviate the impact.