How Labeling Impacts the Triple Bottom Line: People, Planet & Profit

How Labeling Impacts the Triple Bottom Line: People, Planet & Profit

BY: DOUG NIEMEYER / DATE: 19/12/2024 / TOPICS: 制造业, ENTERPRISE LABEL MANAGEMENT, REGULATORY COMPLIANCE, SUSTAINABILITY

The triple bottom line, also known as the 3Ps—people, planet, and profit—offers a framework for measuring a company’s social, environmental, and economic impact. Each pillar represents a critical part of sustainability: people reflects a company’s commitment to benefiting society and improving lives; planet measures a company’s influence on the environment, including efforts to reduce waste and emissions; and profit evaluates the financial returns delivered to shareholders and stakeholders.

Align your labeling strategy with triple bottom line goals

Labeling, a seemingly simple aspect of operations, plays a significant role in advancing these three pillars. From promoting transparency and inclusivity that benefit people, to making eco-conscious choices that protect the planet, to driving efficiencies that enhance profitability, effective labeling aligns with triple bottom line principles in multiple ways.

This blog will highlight how labeling impacts the triple bottom line and how businesses can optimize labeling practices to align with this framework. Companies can drive ethical, sustainable, and profitable growth by focusing on the interconnected areas of people, planet, and profit.

People: Enhancing safety, satisfaction, and inclusivity

Labeling helps prioritize people by enhancing safety, trust, and inclusivity. Whether keeping employees safe, building consumer loyalty, or accommodating diverse needs, effective labeling practices benefit society and strengthen business relationships.

Employee safety

In workplace environments, particularly those handling hazardous materials, clear and compliant labeling is essential. Proper hazard communication labels aligned with standards like Globally Harmonized System of Classification and Labeling of Chemicals (GHS) help prevent workplace accidents by ensuring employees can easily identify risks and handle materials safely. For example, a clear chemical label with appropriate warnings and instructions can prevent mishandling that might lead to spills, exposure, or injuries. By prioritizing safety through precise labeling, companies create a secure environment for their workforce while meeting regulatory requirements.

Use case: GHS compliance to protect the health of workers

BeanTown Chemical needed to implement a barcode labeling system that could accommodate over 7,000 products and over 5,500 unique chemicals and meet GHS standards to improve safety and protect the health of anyone working with chemicals.

With CODESOFT barcode label software, BeanTown Chemical achieved full GHS compliance, leveraging its capability to design and print labels with required information and pictograms. The software automatically adjusts font sizes and pictograms to fit varying label dimensions, accommodating all the fonts and special characters the company uses. 

BeanTown Chemical employees found CODESOFT intuitive, especially for creating label templates, which streamlined the labeling process. By preparing labels in advance, the risk of human error on the production floor was virtually eliminated. CODESOFT also increased efficiency by 10% and eliminated wasted label stock. Read the full case study.

Consumer trust

Transparent labeling builds trust by giving consumers the information they need to make informed decisions. Detailed and accurate product labels—such as nutrition facts, allergens, and ingredient lists—show a company’s commitment to honesty and care. For instance, compliance with US Food and Drug Administration (FDA) guidelines ensures accuracy and standardization, giving consumers confidence in the safety and quality of their purchases. Beyond meeting regulatory requirements, many businesses take voluntary steps to include certifications like Fair Trade, Non-GMO (non-genetically modified organism), or organic seals, resonating with ethically conscious customers. These efforts not only increase loyalty but also position brands as leaders in accountability and integrity.

Inclusivity

Inclusive labeling addresses the diverse needs of today’s consumers, ensuring products are accessible and relevant to everyone. For example, by incorporating large fonts or high-contrast colors, companies make their product labels better for individuals with visual impairments. Additionally, offering multilingual labels helps businesses connect with diverse communities or enter global markets more effectively. Labels that reflect cultural preferences, such as halal or kosher certifications, further expand a product’s appeal. These inclusive practices enhance customer satisfaction and build long-term loyalty by demonstrating a genuine respect for a wide range of needs, interests or wants.

When companies prioritize safety, trust, and inclusivity in their labeling, they demonstrate a commitment to the well-being of people, impacting societal and business success.

Planet: Driving sustainability through responsible labeling

Sustainable barcode labeling practices reduce waste, promote eco-friendly materials, and increase transparency about a product’s environmental impact, helping businesses align with global sustainability goals.

Eco-friendly materials

The choice of label materials significantly impacts environmental sustainability. Using linerless labels or biodegradable and recyclable materials helps minimize waste in both production and disposal stages. For example, linerless labels eliminate the need for backing paper, reducing material usage and waste creation. These innovations save resources and enhance a product’s appeal to eco-conscious consumers.

By adopting sustainable materials, businesses contribute to a circular economy, where resources are reused rather than discarded.

Classifications and certifications

Labels help communicate a product’s environmental credentials. EU energy labels (sample shown to the right) rank appliances on a scale according to how much energy they consume—class A (green) appliances consume the least energy and class G (red) appliances consume the most energy. Certifications like Energy Star or Forest Stewardship Council (FSC) on labels mean a product meets standards for energy efficiency or responsible sourcing. These certifications are more than regulatory necessities—they’re marketing tools that raise consumer confidence in green products. When customers see trusted certifications on labels, they’re more likely to choose products that align with their values, reinforcing a brand’s reputation for sustainability.

Lifecycle perspective

Labels can also enhance sustainability by enabling traceability throughout a product’s lifecycle. For example, QR codes on labels can provide detailed information about a product’s carbon footprint, manufacturing processes, or disposal guidelines. This transparency allows consumers to make informed decisions and engage with products that have lower environmental impacts. Additionally, lifecycle labeling helps businesses track and evaluate their supply chains for opportunities to reduce emissions and improve efficiency. By looking at labeling from a lifecycle perspective, companies can demonstrate accountability and lead by example in their sustainability efforts. 

Using eco-friendly materials, compliance with sustainability certifications, and a lifecycle perspective, businesses can leverage labeling as a part of an overall focus on sustainability reducing negative environmental impacts. These practices not only align with the growing demand for greener products but also solidify a company’s role as a responsible part of protecting the planet.

Profit: Elevating operational efficiency and revenue

Effective labeling is a strategy to help drive profitability. By ensuring accuracy, enhancing brand appeal, and supporting global market expansion, businesses can increase operational efficiency and maximize revenue potential.

Cost reduction through accuracy

Accurate labeling is essential for avoiding costly mistakes such as product recalls or regulatory penalties. Errors in labeling, such as incorrect ingredients or missing hazard warnings, can lead to financial losses, damage to your reputation, and disruption in operations. On the other hand, accurate labeling minimizes these risks, creating a smoother path to market. Additionally, the integration of advanced labeling technologies like barcodes or Radio Frequency Identification (RFID) streamlines inventory management. These technologies enhance tracking and enable real-time visibility across the supply chain, reducing overstocking, understocking, and the associated costs. By investing in accurate labeling, companies not only avoid setbacks but also improve their bottom line. 

Brand differentiation

Labels are a powerful tool for brand storytelling and differentiation in competitive markets. Products with certifications such as organic, sustainable, or Fair Trade can be sold at a higher price point because they appeal to consumers willing to pay more for transparency and ethical practices. Labels highlighting a product's unique qualities—such as eco-friendly packaging or locally sourced ingredients—help brands stand out on shelves. Beyond compliance, well-designed labels act as marketing tools that capture attention and convey a company’s values, fostering stronger consumer connections and boosting sales. 

Global market access 

For businesses seeking international growth, adhering to global labeling standards is non-negotiable. Meeting regulations like Unique Device Identification (UDI) for medical devices in healthcare or multilingual packaging requirements for consumer goods ensures products can be sold across borders. By tailoring labels to comply with international standards, you can access new markets and broader customer bases. This diversifies revenue streams and makes businesses more adaptable in a globalized economy. 

Through accurate labeling, compelling brand differentiation, and compliance with international standards, companies can use labeling to increase efficiency and profitability. When executed strategically, labeling becomes an important part of financial growth and long-term success. 

Use case: Streamlining global labeling operations

MicroVention’s recent growth made it clear they needed to improve their labeling operations to work more efficiently across all their facilities. “We reached a point where we needed a labeling solution that was available over our network, not stored on each individual computer,” explained Frank Carranza, MicroVention Associate Label Engineer.

TEKLYNX CENTRAL, a browser-based label printing solution, streamlined operations across all MicroVention’s facilities, including those beyond US borders, while providing the flexibility to support future growth. It also helped MicroVention meet strict industry regulations by supporting FDA rules like 21 CFR Part 11 and UDI requirements, ensuring compliance and readiness for the future. 

“From design to approval, production, and print, our goal was to make our labeling process leaner overall,” states Carranza. “By implementing TEKLYNX CENTRAL, we were able to streamline our entire labeling process, on a global level, resulting in a 50% improvement in total production efficiency.” Read the full case study. 

Aligning labeling with triple bottom line goals 

Labeling is more than a functional necessity—it’s a tool that directly impacts the three pillars of the triple bottom line: people, planet, and profit. By prioritizing clear, accurate, and inclusive labels, companies enhance safety and satisfaction for employees and consumers. Environmentally responsible labeling practices, such as using eco-friendly materials and enabling product traceability, contribute to sustainability efforts and demonstrate a commitment to protecting the planet. Strategic labeling also supports operational efficiency, strengthens brand differentiation, and unlocks global market potential, leading to growth and profitability. 

To fully leverage the potential of labeling, businesses must approach it with intentionality and innovation. This involves not only thoughtful label design but also implementing enterprise label management solutions. These solutions streamline the creation, updating, and compliance of labels across products and regions, ensuring consistency and adaptability in a fast-changing marketplace. From integrating advanced technologies like RFID to aligning with international regulations, a robust labeling system supports both compliance and sustainability goals, reducing risks and maximizing opportunities. 

Now is the time to evaluate your labeling through the lens of the triple bottom line. Does your current approach align with the needs of people, the planet, and profitability? With a TEKLYNX labeling assessment, we can help you uncover gaps and provide actionable insights. By aligning your labeling strategy with the principles of the triple bottom line, your business can drive ethical, sustainable, and profitable growth while making a meaningful impact on the world. 

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