Triple Bottom Line
The Triple Bottom Line (TBL) is an accounting framework that measures the financial, social, and environmental performance of a business. It is a way of measuring success that goes beyond just financial performance and takes into account the impact of a business on its stakeholders, such as employees, customers, suppliers, and the environment. The TBL is also known as the 3Ps (People, Planet, Profit) or the 3Es (Economy, Environment, Equity).
History of the Triple Bottom Line
The concept of the Triple Bottom Line was first introduced in 1994 by John Elkington, a British business consultant. He argued that businesses should measure their success not only in terms of financial performance, but also in terms of their social and environmental performance. This idea has since been adopted by many businesses and organizations around the world as a way of measuring their success.
The Triple Bottom Line has become increasingly important in recent years as businesses and organizations have become more aware of their impact on the environment and society. It has also become a popular way of measuring success in the corporate world, as it takes into account not only financial performance, but also the impact of a business on its stakeholders.
Table of Comparisons
| Financial Performance | Social Performance | Environmental Performance |
|---|---|---|
| Profitability | Employee Satisfaction | Carbon Footprint |
| Revenue Growth | Customer Satisfaction | Resource Efficiency |
| Cost Reduction | Supplier Relationships | Waste Management |
Summary
The Triple Bottom Line is an accounting framework that measures the financial, social, and environmental performance of a business. It is a way of measuring success that goes beyond just financial performance and takes into account the impact of a business on its stakeholders, such as employees, customers, suppliers, and the environment. The TBL is also known as the 3Ps (People, Planet, Profit) or the 3Es (Economy, Environment, Equity). For more information about the Triple Bottom Line, you can visit websites such as the World Business Council for Sustainable Development, the Global Reporting Initiative, and the Sustainable Business Network.
See Also
- Sustainability
- Corporate Social Responsibility
- Environmental Impact Assessment
- Life Cycle Assessment
- Carbon Footprint
- Resource Efficiency
- Waste Management
- Social Impact Assessment
- Environmental Management System
- Greenhouse Gas Emissions
