Strategic Decision Making for the Triple Bottom Line

Abagail Mcwilliams, Annaleena Parhankangas, Jason Coupet, Eric Welch, Darold T. Barnum

Research output: Contribution to journalArticle

35 Citations (Scopus)

Abstract

Corporate social responsibility (CSR) has become a mandate for strategic managers and is often an important element of a differentiation strategy, but there is little research on how managers can make socially responsible decisions within the context of competitive strategy. In this study we explain how data envelopment analysis (DEA) results can be used to determine the trade-offs inherent in managing the triple bottom line of profits, people and the planet. Once the trade-offs are well understood, managers can implement sustainable competitive strategies that incorporate socially responsible decisions. Using public data from the electric power generation industry, we demonstrate how DEA can be utilized to determine the trade-offs between efficiency, costs and pollution reduction, allowing managers to make and champion socially responsible decisions. We discuss the general applicability of our method for making strategic decisions incorporating the triple bottom line.

Original languageEnglish (US)
Pages (from-to)193-204
Number of pages12
JournalBusiness Strategy and the Environment
Volume25
Issue number3
DOIs
StatePublished - Mar 1 2016
Externally publishedYes

Fingerprint

decision making
manager
data envelopment analysis
data analysis
social responsibility
power generation
profit
planet
pollution
efficiency
decision
Triple bottom line
Strategic decision making
Managers
industry
costs
cost
Trade-offs
Data envelopment analysis
Competitive strategy

Keywords

  • Corporate Social Responsibility
  • DEA
  • Differentiation Strategy
  • Environmental Responsibility
  • Stakeholder Engagement
  • Sustainability

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Strategy and Management
  • Management, Monitoring, Policy and Law
  • Business and International Management

Cite this

Mcwilliams, A., Parhankangas, A., Coupet, J., Welch, E., & Barnum, D. T. (2016). Strategic Decision Making for the Triple Bottom Line. Business Strategy and the Environment, 25(3), 193-204. https://doi.org/10.1002/bse.1867

Strategic Decision Making for the Triple Bottom Line. / Mcwilliams, Abagail; Parhankangas, Annaleena; Coupet, Jason; Welch, Eric; Barnum, Darold T.

In: Business Strategy and the Environment, Vol. 25, No. 3, 01.03.2016, p. 193-204.

Research output: Contribution to journalArticle

Mcwilliams, A, Parhankangas, A, Coupet, J, Welch, E & Barnum, DT 2016, 'Strategic Decision Making for the Triple Bottom Line', Business Strategy and the Environment, vol. 25, no. 3, pp. 193-204. https://doi.org/10.1002/bse.1867
Mcwilliams, Abagail ; Parhankangas, Annaleena ; Coupet, Jason ; Welch, Eric ; Barnum, Darold T. / Strategic Decision Making for the Triple Bottom Line. In: Business Strategy and the Environment. 2016 ; Vol. 25, No. 3. pp. 193-204.
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