Question
What is the classical view of managementās social
responsibility?ĀSolution
The classical view was focussed on maximising the profit at all costs. Later the concept of 3 P (Profit, people, planet) or triple bottom became important. The phrase āthe triple bottom lineā was first coined in 1994 by John Elkington, the founder of a British consultancy called Sustainability. His argument was that companies should be preparing three different (and quite separate) bottom lines. One is the traditional measure of corporate profitāthe ābottom lineā of the profit and loss account. The second is the bottom line of a company's āpeople accountāāa measure in some shape or form of how socially responsible an organisation has been throughout its operations. The third is the bottom line of the company's āplanetā accountāa measure of how environmentally responsible it has been. The triple bottom line (TBL) thus consists of three Ps: profit, people and planet.
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