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VanNatta 1
Triple Bottom Line:
The Creation of a Sustainable Food Chain Protocol.
Skylar M. VanNatta
Central Michigan University
MGT 487 Project
May 3, 2014
VanNatta 2
Introduction
There is no question that sustainability is currently at the forefront of the public debate.
According to Our Common Future, also known as the Brundtland Report, the definition
of sustainable development can be described as:
"The development that meets the needs of the present without compromising the ability
of future generations to meet their own needs.”
This definition contains two separate components. The first component is the concept of
needs, while the second component is the idea of limitations. Sustainability is a balance
between taking what is needed, while still walking on a thin line of what is available.
In 1994, John Elkington, a world leader in sustainable development and corporate
responsibility, developed the phrase “triple bottom line” (Canadian Business for Social
Responsibility, 2013). Elkington argues that companies should prepare three separate
bottom lines. The triple bottom line (TBL) that Elkington is referring to consists of the
three P’s of business: profit, people and planet. By incorporating all three P’s, the triple
bottom line strives to calculate the economic, social, and environmental endeavors of a
corporation. Only companies that prepare a complete TBL are considering the full costs
associated with business (The Economist, 2009).
The first bottom line is the traditional calculation of corporate profit and loss. This bottom
line is the most known and commonly used of the three, and is typically considered
“thee bottom line.” The second measure falls into the planet or environmental category.
This bottom line is a measure of how environmentally responsible a company or
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organization has been throughout its operations. The final measurement is the people
or social bottom line. This bottom line focuses on how socially responsible an
organization has been. Companies and organizations that take the time to measure
their TBLs are the only groups who will recognize their social and environmental impact,
and therefore will work to become more environmentally and socially responsible (The
Economist, 2009). Because many companies do not calculate their TBLs, there are
many costs of business that are not realized nor paid for.
With steadily increasing global awareness of sustainability, businesses of all industries
have responded by reporting their impacts on the global economy, environment, and the
organization itself. Companies are doing more by participating in sustainability programs
and releasing Corporate Social Responsibility and Sustainability reports to the public.
This behavior shows that businesses utilize sustainability reporting as a powerful tool in
their decision-making, as well as in their corporate policy and strategy. There seems to
be a growing acknowledgment that regular and valid sustainability reporting is in the
best interest of businesses from any field.
One problem with the triple bottom line is that the three separate accounts cannot be
added up together with ease. Unlike the profit account, it is difficult to quantify the planet
and people accounts. For example, the lost monetary profit from an oil spill can be
easily calculated, but it is much more difficult to provide the cost that the oil spill had on
nature and the people effected by it.
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As a college student, one major aspect of my college career was living in the residential
halls and eating at university cafeterias. With a student population of roughly 28,000
students, there is a high demand for quality food. To accommodate these demands,
Campus Dining has four university cafeterias, stationed around Central Michigan
University’s campus. Nutrition, menus, and other related details can be found at
http://www.campusdish.com. Upon investigation, the website offers a link to
sustainability efforts put forth by Campus Dining facilities. The website promotes
sustainable food that is organic, sustainably certified, natural, and above all local.
It seems that the idea of buying local has been engrained into our minds as a patriotic
act of supporting our local communities and fighting against large evil corporations.
Grocery stores proudly display signs above produce from local farms, and restaurants
advertise the fact that they buy ingredients locally. There is an endless list of reasons
supporting the idea of buying local. Common rationale includes supporting the
community, reducing negative environmental impact through less transportation,
creating more jobs for Americans, and all around better service.
Dependable sources have even presented reliable studies and research claiming that
buying local is indeed the best option. However, these studies tend to look at one factor
and one factor alone, the economic bottom line. It is true that spending money at a
nearby roadside shop keeps money within the community, and thus contributes to
keeping the local economy alive. However, what are the environmental and social
impacts of buying locally versus buying non-locally? Do these two factors offset the
benefit of buying local? Is it possible that buying from different regions is actually a
better option when considering the triple bottom line?
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A Word From Professor Van Miller
This report on sustainable food chains and corporate stewardship satisfies the main
requirement for MGT 487—Project Course for Sustainable Development. During the
semester, it is linked to MGT 400 Global Concepts for Sustainable Development, which
emphasizes three sustainability tools—sustainability science, life-cycle analysis, and
industrial ecology. Being the second time the course has been offered, we decided to
devote the course to the sustainability theme of food, given its importance on our
campus. Food represents a highly relevant theme for a university with numerous
residence halls and is consistent with emerging CMU efforts at sustainability. As Skylar
discusses and elaborates on herein, evaluating local vs. non-local food items from a
sustainability perspective is exceedingly difficult. In fact, there does not seem to exist a
readily available instrument for such an undertaking. That fact has provided the
impetus for this particular course project—the construction of a sustainable food
chain protocol.
Part One: What’s Missing?
Central Michigan University utilizes Gordon Food Services (GFS) as the distributor of
food for on-campus dining facilities. Gordon Food Service is North America's largest
family-owned broadline foodservice distributor. The company also has a segment in
Canada known as Gordon Food Service Canada (GFSC). The company dedicates itself
to its customers by providing quality products and solutions to help drive its customer’s
success (Gordon Food Service). GFS has intertwined stewardship with the company’s
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culture, history, and future aspirations. The company simply categorizes its goals in
three current and future objectives: ensure corporate sustainability, minimize
environmental impact, and promote social responsibility. GFS desires to “sustain its
financial performance while serving its customers, providing jobs, paying taxes, and
supporting communities today and in the future” (Markon Inc). The company focuses on
maintaining sustainable operations and spreading the essentialness of sustainability by
offering sustainable products. Lastly, GFS seeks to “care for its people, customers,
supplies, and the community it serves” (Markon Inc).
Though Gordon Food Service is a large distributor, it is part of a company called
Markon Cooperative, Inc. Markon was founded in 1985, and was the first product-
purchasing agent for foodservice. The company is made up of eight independent,
broadline foodservice companies throughout both Canada and the United States.
“Today, it procures, delivers, and markets fresh produce for nine of the leading
independent foodservice distributors in North America” (Markon Inc). Due to the
importance of stewardship within the agricultural industry, Markon will only partner with
companies and growers who share the same beliefs about sustainability (Markon Inc).
Markon states its overall viewpoint on sustainability by saying that “the stewardship of
the land and profitability are not mutually exclusive, and success does not have to
compromise the needs of future generations” (Markon Inc).
Shamrock Foods Company was started in 1922 by the son of an Irish farmer who
immigrated to the U.S. Upon his arrival, the Irish farmer purchased a small dairy farm
and served a small group of customers in the Tucson area. “Shamrock Foods
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specializes in the manufacturing and distribution of quality foods and food-related
products” (Shamrock Foods). 92 years have passed since is creation and Shamrock
now serves its customers through multiple companies including both Shamrock Foods
and Shamrock Farms. Shamrock Farms is the biggest dairy farm located in the
Southwest part of the US. Shamrock Foods is a large company (7th largest) that serves
as a U.S. foodservice distributor. Currently, Phoenix serves as Shamrock’s
headquarters and center of distribution. From this city, the company sends refrigerated
trucks all over the region. The nine states that Phoenix handles include Arizona,
Colorado, New Mexico, and California (Shamrock Foods). The company acknowledges
that it has a responsibility to not only the current generation, but also future generations.
Shamrock also realizes that its companies have a large impact on the environment, and
therefore has dedicated itself to implementing its objectives of sustainable development
in all areas of its business.
Shamrock moves towards its goal by closely monitoring water and energy usage,
researching transportation alternatives and enhancements, reducing waste, preventing
pollution, incorporating sustainable products and packaging, and constantly looking for
future opportunities to reduce their footprint. Due to its extreme importance within
society, Shamrock has paid special attention to water. Shamrock has reduced its water
consumption by implementing wastewater treatment systems, creating a storm water
pollution prevention plan, auditing all facilities for leaks, and installing motion-activated
water faucets in bathrooms. Energy conservation has been achieved through the use of
high-efficiency boilers, replacement of incandescent light bulbs, and proper staff
education. Due to a rise in oil prices, Shamrock conserves fuel by using truck engines
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that are clean-idle certified, installing idle timers that automatically shut off truck engines
after five straight minutes of idling, and utilizing truck routing software that minimizes
miles driven. In order to reduce waste, Shamrock employs many tactics including
implementing companywide recycling receptacles, reusing warehouse-shipping pallets,
and adhering to air and water quality permits to ensure federal, state, and local
compliance. Finally, Shamrock uses packaging made with 100% recyclable materials,
and strongly encourages customers to take advantage of this application (Markon Inc).
After 50 years of business, Reinhart Foodservice (RFS) has grown to become the 5th
largest foodservice distributor in the country. Rapid expansion is credited to the
outstanding quality of Reinhart’s products and a strong employee commitment. Reinhart
also recognizes the commitment of their suppliers who “work closely with us to help
provide the best value to our customers” (Reinhart Foodservice). As the company
begins its 5th decade of business, it adapts to changes in time and values. Since the
company hopes to continue its long line of success for many more years to come,
Reinhart has devoted itself to solid environmental stewardship. It is “making a concerted
effort to take an environmentally sound direction in every significant aspect of its
business” (Markon Inc). The company’s focus statement is to outsmart its competitors
and continuously get better as the days progress. (Reinhart Foodservice LLC).
Reinhart’s current green initiatives revolve around transportation, smart energy,
recycling, and green disposables and cleaners. To better transportation, Reinhart is
attempting to incorporate earth-friendly components into every truck it owns, equipping
new tractors with diesel engines, and paying attention to little details such as monitoring
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tires to ensure they are at the best possible air pressure. In terms of smart energy,
Reinhart is working to raise efficiency in the arrival and storage of products in its
warehouses. Reinhart has reported that it “has been able to drastically reduce its
energy use through smart warehouse designs, engineering standards, and efficient
routing” (Markon Inc). After increasing its recycling efforts, Reinhart learned that
recycling has multiple benefits. According to Reinhart “recycling reduces the use of
energy and raw materials, and it also reduces the amount of waste that the company
pays to haul to landfills” (Markon Inc). Lastly, Reinhart offers green product alternatives
that have the ability to decompose and return back to nature. These products include
cups and lids called Greenware by Fabri-Kal, service ware called the Genpak Harvest
Collection, and earth-friendly cleaners that are non-toxic, non-hazardous, and non-
corrosive (Markon Inc).
ProPacific Fresh was founded in 1983 in Durham, California. The company got its start
by selling products to local vendors. As the company expanded, the product selection
grew as well. Today, ProPacific offers a large selection of dairy products, eggs, meat,
cheese, fruits, frozen items, vegetables, salads, salad dressing, and more. With the
support of customers, ProPacific has been able to expand distribution operations in
Redding, Durham, Sacramento, and Eureka, California. In addition to distribution
operations, ProPacifc also operates two other businesses. The first is an incorporated
logistics and freight company called Third Party Logistic Services. The second is a
“service and repair center serving the transportation and agriculture industry”
(ProPacific Fresh) called Durhman Pentz Truck Center. “ProPacific Fresh actively
participates in energy conservation, water conservation, and recycling” (Markon Inc).
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The company realizes that serving the environment can concurrently benefit the
company’s operations by eliminated both waste and costs. ProPacific constantly
researches efficient products and practices to implement within its own company, as
well as within other businesses it works with (Markon Inc).
Nicholas William Mouskondis started Nicholas & Company back in 1939. 75 years have
passed and the company is still within the family. Due to the strong ancestor influences,
the original family vision has remained unchanged. The company strives to incorporate
“integrity, honesty, and opportunity for all associates and team members” (Markon
Inc). While the company sticks to its initial core values, it has been adapting with time. A
key factor within the company’s operations, facilities, and products is sustainability. Not
only has sustainability helped the company to fuel its success, it also shows customers
that the company has good intentions and a sincere concern for the community.
Nicholas & Company takes its impact on the communities and families it touches
seriously. Unlike the other companies discussed, Nicholas & Company has partnered
with the SWCA Environmental Performance Group in order to gauge its carbon
footprint. The company is now hard at work developing a plan to minimize its impact on
the environmental by reducing that footprint (Nicholas & Company, Inc.). Nicholas &
Company has made many other changes to its company in order to move towards
higher sustainability as well.
Nicholas & Company’s current green practices include sustainable products and tools,
sustainable facilities, and sustainable operations. The company offers customers a
variety of operational tools such as reduce-reuse-recycle guides, and sustainability
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definitions and explanations. Nicholas & Company’s facilities have been renovated to
include sustainable applications including light-reflective roofing material, renewable
carpeting, UV-reflective film on windows, and recycled insulation in thicker cooler and
freezer walls. Operations have been improved through actions such as extensive
recycling, converting all warehouse equipment to electric, thicker insulated walls on
trailers, and smaller more fuel-efficient engines in delivery vehicles (Markon Inc).
Floyd L. Maines, Sr. founded Maines Candy Company in 1919. Through the
generations, Maines Candy Company has navigated its way into the foodservice
business. Today, Maines Candy Company is known as Maines Paper & Food Service. It
is the seventh largest broadline distributor in the country, and one of the largest
independent systems distributors in the country. Though the company has experienced
a great deal of transformations, sustainability is more than just a fad at Maines. Being
green is a core value of the company that has been “integrated into its corporate identity
through innovation, eco-conscience programs, and initiatives” (Maines Paper & Food
Service, Inc.).
Maines makes green-minded decisions on all levels within the company, and its actions
encompass everything from reducing waste, recycling, reusing, to energy conservation.
Like many of Markon’s cooperatives, Maines recycles cardboards, plastics, and
aluminum. The company’s delivery vehicles are routed in the most efficient way
possible to decrease mileage, and truck drivers are offered special incentives for
lowering miles per gallon rates. Maines even works with government agencies and
undergoes audits to uncover any leaks, drips, or other obvious waste. All chemicals and
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cleaning products the company uses within the warehouse are being switched over to
the new “green” line to avoid any sort of negative impacts on the environment. Energy
conservation is another key strategy Maines is incorporating into the company. Motion-
detecting light switchers were installed, truck drivers completely turn off engines at
deliveries and pick-ups, and all office equipment is shut down at the end of each
workday. In the rare case that products do not meet standards for shipment, Maines
donates the product to local food banks. $50,000 worth of food is donated to the
underprivileged and elderly annually. Despite their positive progress, Maines always
scans the horizon for new eco-friendly initiatives that can be employed (Markon Inc).
Ben E. Keith Company was started in 1906 and is a distributor of food service products.
The company has an extensive line of produces including “produce, frozen foods,
refrigerated foods, meats, dry groceries, paper goods, equipment and supplies to
restaurants, schools, hospitals, nursing homes and other institutional businesses” (Ben
E. Keith). Ben E. Keith serves eleven states in the foodservice division, and employs
over 4,000 people. The company focuses on utilizing resources correctly and reducing
its environmental impact throughout the entire company.
Ben E. Keith has fully pledged its company to going green. The company is a member
of the U.S. Green Building Council. This council advocates the importance of building
green, and has certified Ben E. Keith’s construction team as LEED (Leadership in
Energy & Environmental Design) Accredited. In addition, the company has applied a
variety of other environmentally friendly activities. Ben E. Keith installed energy-efficient
controls on refrigeration systems, utilizes water-saving appliances in all areas of
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operation, uses fluorescent lightings, replaced all wooden pallets with reusable plastic
pallets, recycles, and is even working to introduce paperless deliveries in some markets
(Markon Inc).
It is clear to see that sustainability has become a component that companies are
beginning to invest in. Each of Markon’s eight independent broadline foodservices
provides information on how it is making smarter and more environmentally efficient
decisions. While this shows progress in the use of the environmental or planet bottom
line, none of the companies researched made an effort to include the social bottom line.
Due to the absence of the third bottom line, the full evaluation of local vs. non-local food
items from a sustainability perspective remains impossible. For this reason, in order to
answer whether or not to buy local, the construction of a sustainable food chain protocol
must be developed
Part Two: Sustainable Food Chain Protocol
In order to create a spreadsheet that could be used to choose between local and non-
local sources, a list of factors pertaining to the triple bottom line was complied. The
structure of the spreadsheet consists of columns for each of the triple bottom lines, and
rows that are based off different stages of business. A single spreadsheet is devoted to
a single company or organization. When evaluating a company or organization, the
participant should consider actions occurring over the past 10 years. If the company or
organization is younger, then every year since its creation should be taken into
consideration while calculating.
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Since factors on the spreadsheet are difficult to quantify, the same person or the same
group of people should fill out the spreadsheets. This will keep a certain level of
consistency. Companies should always fill out their own spreadsheets as an added
attempt to create uniformity. In addition, Companies should always fill out their
spreadsheets at the time that a decision is being made. Companies and organizations
change over time, and their triple bottom line may adjust significantly enough to sway
the decision.
When filling out the spreadsheet companies are rated by each factor and given a
number between one and five. Five represents strongly agree, four represents agree,
three represents neutral, two represents disagree and one represents strongly disagree.
After each factor has been given a numerical value, the triple bottom line is calculated
by adding up all of the numbers. During the use of this particular table, the higher the
triple bottom line value, the better.
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The Figure on the previous page shows the spreadsheet created for evaluating local vs.
non-local options. Below is a short description of each category. Evaluators should read
each statement with the sliding scale depicted below in mind.
Strongly Disagree Disagree Neutral Agree Strongly Agree
1 ------------------------- 2 ------------------------- 3 ------------------------- 4 ------------------------- 5
*As a side note, one might notice that there are few variables on the spreadsheet
pertaining to the economic bottom line. When a company is pricing its product for sale,
the price depends on certain factors of business. Was water more expensive? Did the
minimum wage increase? The end price will reflect all of these changes. Therefore, for
the purpose of this paper, it should be assumed that “price” accounts for a large variety
of factors, and that is why it does not have a large presence on the spreadsheet.
Production
Nurturing the Land – Rotational Crop Planting: Environmental
“Crops are rotated in chronological seasons to help manage soil fertility and to help
avoid or reduce problems with soil borne diseases and soil-dwelling insects” (Organic
Gardening).
Environmental Impact – Erosion: Environmental
Measures have been taken to keep erosion to a minimal. This includes planting grass or
using ground cover on exposed soil that is not being utilized for crop growing. All
embankments or slopped land is not left exposed or bare. There is an adequate
draining or water collection system in place. Retaining walls and fences are used as
windbreakers (National Geographic).
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Environmental Impact – Agricultural Runoff: Environmental
Agricultural runoff is prevented through constant maintenance of tracks and raceway
(buffer strips along edge of crops) or through the use of a filtration system (United
States Environmental Protection Agency).
Pest Management: Pesticides Environmental
Use of pesticides is within the rules and regulations set forth by the United States
Department of Agriculture (USDA)and the United States Environmental Protection
Agency (US EPA). Use of fertilizers also adhered to the instructions put forth by the
manufacturer (University of Florida)
Pest Management - Fertilizers: Environmental
Use of fertilizers is within the rules and regulations set forth by the United States
Department of Agriculture (USDA) and the United States Environmental Protection
Agency (US EPA). Use of fertilizers also adhered to the instructions put forth by the
manufacturer (University of Florida).
Materials – Water Use: Environmental
The amount of water used per day should follow along with the suggested amount
presented by the United States Department of Agriculture (USDA).
Materials - Land to Crop Output Ratio: Environmental
Land is being utilized efficiently and produces a highest crop to land ratio.
Water Recycling: Environmental
At least 50% of water used during operations is recycle for repeated use.
Energy Use - Amount: Environmental
The company employs techniques to reduce use of electricity such as energy efficient
equipment (Ensave Inc). The company adheres to the suggestions made by EnSave,
an organization that works with farms to dramatically reduce energy consumption.
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Energy Use – Source: Environmental
Company receives at least 5% of energy from reusable resources such as solar or wind.
Waste – Toxic or Hazardous: Environmental
Toxic or Hazardous waste is disposed properly and meets all US guidelines and
requirements set by the Department of Environmental conservation and US
Environmental Protection Agency (United States Environmental Protection Agency).
Biodiversity: Environmental
“Operational sites leased, owned, and managed in or adjacent to protected areas and
areas of high biodiversity respect the land and protect the resources it has to offer”
(Altron).
Procurement/Sourcing Practices – Multiplier Effect: Social
Company works with other companies and organizations. By providing business to
other companies, there is a larger multiplier effect in terms of number of jobs and money
circulation.
Procurement/Sourcing Practices – Human Rights: Social
The human rights of employees are being respected at companies that are being
worked with?
Procurement/Sourcing Practices – Environmental Protection: Environmental
The environment is a factor of concern for companies that are being worked with.
Procurement/Sourcing Practices – Fair Trade: Social
Trading partnerships is based on dialogue, transparency and respect, which seek
greater equity in trade.
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Employees
Use of Local Labor: Social
More than 80% of workers live locally. This entails having a 25 minute commute (US
average) or shorter.
Standard of Living – Housing Opportunities: Social
Workers have housing options within 20 miles of the workplace that cost within the
recommend 30% of yearly pay.
Standard of Living – Educational Opportunities: Social
Education facilities including elementary, middle, and high school are located within 20
miles of the workplace.
Labor Costs: Social
Pay rates are above or equal to official minimum wage set by state set by the location of
company or organization filling out spreadsheet.
Human Rights – Equal Opportunity: Social
Diverse workforce where employees are not discriminated against in accordance with
Federal Employment Statutes.
Human Rights – Fair Treatment of Women: Social
Male and female workers are treated in the same manner. There is a system in place to
allow for workplace sexual harassment complaints.
Human Rights – Child Labor: Social
There is no use of child labor as defined by the US Department of Labor
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Career Development (Training): Social
Job provides employees with sufficient training that will adequately prepare them for
their future.
Worker Safety: Social
Workers are educated in worker safety and annual safety incidents are reported.
Transportation and Distribution
Emissions: Environmental
All forms of transportation have routing tools that plan route based on the shortest
possible mileage. Cars and trucks are idle-certified and trucks are turned completely off
during pick-ups and drop-offs
Cost: Economic
Cost of current gas prices.
Availability: Economic
Growing season allows for yearlong growth. It is easy to receive shipments and produce
is accessible.
Food Safety – Number of Safety Tests: Social
Growing season allows for yearlong growth. It is easy to receive shipments and produce
Food Safety – Number of Reported incidences: Social
All incidences of food safety have been reported properly. There have been a limited
number of food safety issues in the past 10 years where the product actually makes it to
the consumer’s hands.
Quality: Economic
Products undergo a variety of taste tests that evaluate taste, texture, appearance.
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Price: Economic
Price of product
Impact on Surrounding Community: Social
The surround community benefits and from the company and enjoys or is indifference to
the company’s presence within the population.
Conclusion:
The initial motivation for this paper included determining whether or not to buy local or
non-local. After researching, it became obvious that there was no feasible way to
measure the total costs of buying near or far. While economic information is readily
available, environmental factors that might sway the decision one way or another is
hard to find. Additionally, social factors are completely nonexistent and thus have
absolutely no say in the debate. In facing this dilemma, the purpose of the paper
transformed. Instead of advocating for or against buying local, the main purpose
became creating a measurement tool that could aid in beginning to understand the full
costs of each option. This protocol could then be used in the process of choosing
between local and non-local.
There are both positives and negatives to buying local and non-local. After a
spreadsheet was created to measure the triple bottom line of each option, it became
clear that there is no concrete answer to buying local or far. With so many variables
involved in making the judgment, it can be assumed that every situation is different.
There is not possibility that one version of the spreadsheet will fit all needs. Any
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company or business that wish to utilize the spreadsheet must make alterations and
incorporate different factors that apply to their situation. While local might be best under
some circumstances, non-local could be better under other conditions.
Food is one of three basic necessities that every human requires to stay alive. With
such a large importance within society, it is highly unlikely that such an industry will
vanish anytime soon. While extremists continue to fight for either side of the spectrum,
more attention should be put into the entire process overall. Instead of promoting local
over non-local, or vice versa, the triple bottom line should be promoted no matter what
the location is. At the end of the day, companies and organizations will still have to
choose between a group of local and non-local providers. Instead of having location be
the deciding factor, lets let the triple bottom line fulfill its purpose of providing the true
overall cost of doing business.
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