Three bottom line

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This accounting framework measures financial results, but also includes environmental and social factors to determine a business's ultimate value. Most businesses are focused on profit; after all, that's the reason they exist, right? But a modern perspective on sustainability is starting to take root in many businesses, and it holds the potential to redefine success.

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All businesses must make money. But triple bottom line companies realize that they can do more. Traditionally, business leaders concerned themselves with their bottom lines—or, the monetary profits their businesses made.

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It consists of three Ps: profit, people and planet. His argument was that companies should be preparing three different and quite separate bottom lines. The triple bottom line TBL thus consists of three Ps: profit, people and planet.

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ESC advocates held that investors should target companies with a proven track record in environmental and social responsibility. Triple bottom line auditing was devised to measure that track record. Those decisions encouraged financial institutions to create ethical investment funds and companies to adopt triple balance sheet auditing. It does this by costing all company activity and calculating whether the company is making a financial profit or a loss.

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Imagine going to work every day for a company that you are truly excited about, and proud to be a part of. They stand out from the typical "cut-throat" business world by the way they treat suppliers, their commitment to environmental sustainability, their ethical investments, and their desire to empower and promote their team members instead of dragging them down. There is a constant air of excitement and possibility at the office, and you love coming to work each day.

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As Corporate Social Responsibility CSR initiatives have become more and more popular, the attention of performance management has turned away from only financial and towards a more holistic approach. The model was developed by John Elkington, in his book SustainAbility. The author argues it is beneficial for any organisation to take their performance analysis beyond traditional measures of financial performance.

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The triple bottom line or otherwise noted as TBL or 3BL is an accounting framework with three parts: social, environmental or ecological and financial. Some organizations have adopted the TBL framework to evaluate their performance in a broader perspective to create greater business value. In traditional business accounting and common usage, the " bottom line " refers to either the "profit" or "loss", which is usually recorded at the very bottom line on a statement of revenue and expenses.

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One key line: "The truth knocks on the door and you say, 'Go away, I'm looking for the truth,' and so it goes away. We will wire the door for sound — and encourage all sorts of people to knock. Take this as your invitation to take part in that inquiry, slated to run for a full year.

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Today, we continue to outstrip our planetary boundaries with no sign of slowing down. How often are management concepts subjected to recalls by the people who invented them? It is hard to think of a single case.


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