4.5 Key Terms
- Mission Statement: A formal declaration of a company’s purpose that goes beyond profit to include specific social and environmental objectives.
- Vision Statement: A forward-looking declaration that outlines the positive impact a business aims to have on the world.
- Sustainability Integration: The process of embedding sustainable practices into all core functions of a business, from initial product development to final marketing.
- Triple Bottom Line (TBL): An accounting framework that expands the traditional focus on financial profit to include two additional dimensions: people (social performance) and planet (environmental performance).
- Social Performance: A measure of a company’s success in terms of its social impact on employees, communities, and other stakeholders.
- Environmental Performance: A measure of a company’s success in reducing its ecological footprint.
- Performance Measures: Specific metrics used to track and evaluate a business’s progress toward its sustainability goals.
- Social Impact Quantification: The process of using data (e.g., employee satisfaction scores, number of fair-wage jobs) to measure a company’s positive social contributions.
- Environmental Impact Quantification: The process of using metrics (e.g., carbon footprint, waste reduction) to measure and report a business’s environmental performance.
A formal declaration of a company’s purpose that goes beyond profit to include specific social and environmental objectives.
A forward-looking declaration that outlines the positive impact a business aims to have on the world.
The process of embedding sustainable practices into all core functions of a business, from initial product development to final marketing.
An accounting framework that expands the traditional focus on financial profit to include two additional dimensions: people (social performance) and planet (environmental performance).
A measure of a company's success in terms of its social impact on employees, communities, and other stakeholders.
A measure of a company's success in reducing its ecological footprint
A business's effect on society, including fair labor practices, community engagement, and solving social problems.
Specific metrics used to track and evaluate a business's progress toward its sustainability goals.
The process of using data (e.g., employee satisfaction scores, number of fair-wage jobs) to measure a company's positive social contributions.
The process of using metrics (e.g., carbon footprint, waste reduction) to measure and report a business's environmental performance.
A core practice in sustainable supply chains that focuses on cutting down on waste at every stage, from production to delivery.
