Managing the "triple bottom line"

Part I: What is it, why is it important?

by Jean Graef

October, 2003

Three big events have shaped my 30-year career as an information professional:

• the computerization of periodical indexes and library card catalogs (1970's);
• introduction of desktop publishing (1980's);
• the implementation of the Internet in business (1990's).

Always on the lookout for trends that can have a big impact on information services, I've recently been looking at what some call "social impact management." This means evaluating organizations, not just on their financial performance, but also on a "triple bottom line" of social, environmental, and economic yardsticks. In this three-part series we define the concept, describe its impact on information services, and suggest some directions for future development.

An old idea whose time has come
The idea that corporations should operate as "socially responsible" enterprises is not new. Since the first socially responsible mutual fund was launched in 1971, there has been at least token agreement that businesses have some community obligations. Companies that don't agree still have to comply with government regulations.

In the last few years, the idea of corporate social responsibility has moved from the activist fringes to the mainstream. If you work for a multinational company in a highly regulated industry (e.g. chemicals, pharmaceuticals, transportation, apparel, extractives), the issue is probably a priority for your CEO. For-profit companies aren't the only ones affected. Large not-for-profit or quasi-public organizations like the World Bank and the IMF are being pressed for greater "transparency" and better ways to evaluate "development effectiveness." All organizations face the same three questions:

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