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Enabling Triple Bottom Line Compliance Via Principal-Agent Incentive Mechanisms

Author

Listed:
  • Andrew Manikas
  • Michael Godfrey

Abstract

A corporation that wants to fully embrace sustainability must address all three pillars of the triple bottom line. Among profit, planet, and people, it is this last category that is hardest to measure directly. When a company has remote locations and cannot directly observe effort, the compliance must be inferred from other metrics. We introduce a game-theoretic model to influence plant compliance to corporate goals.

Suggested Citation

  • Andrew Manikas & Michael Godfrey, 2011. "Enabling Triple Bottom Line Compliance Via Principal-Agent Incentive Mechanisms," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 5(2), pages 105-114.
    • Handle: RePEc:ibf:gjbres:v:5:y:2011:i:2:p:105-114
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    More about this item

    Keywords

    Sustainability; Triple-Bottom-Line; Principal-Agent;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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