During the mid-1990s, several theories arose regarding good business management practices and the ethical heartbeats of corporations. In 1995, Nobel Peace Prize winner and economist Muhammad Yunus laid the foundation for the concept of conscious capitalism. As the founder of a bank that made microloans for impoverished entrepreneurs in Bangladesh, Yunus called his bank a “socially conscious capitalist enterprise.”*
Conscious capitalism took off from there. It has become an increasingly influential movement that posits that businesses thrive when they have a greater purpose. This movement is still rooted firmly in capitalistic principles. However, it calls on corporations to consider the social and environmental ramifications of decision-making, as well as its economic results.
The concept of the triple bottom line—or people, planet and profit—is quite similar. These phrases were coined by John Elkington in 1994 and 1995, respectively.** Elkington had been trying to describe his ideas in a way that would resonate with corporate executives and entrepreneurs. He chose the phrase “triple bottom line” in order to put environmental and social responsibility on an even footing with economic impact.
Back in the 1990s, Elkington predicted that corporations would become much more influential in shaping the modern world than governmental entities and nongovernmental organizations (NGOs). He also knew that consumers would play a significant role in pressuring businesses to make more ethical decisions with regards to social morality and environmental sustainability. Elkington described his triple bottom line as a win-win-win scenario for businesses to underscore the societal good that could be derived from ethical business practices.**