The Triple Bottom Line is one of the main systems being used by businesses to assess the profits they are making through their corporate sustainability solutions. The Triple Bottom Line method asks you to see beyond the traditional bottom line of business to the profits that your business makes socially, environmentally, and economically. Measuring your business using the Triple Bottom Line is one of the best markers of how sustainable your business is, and how profitable it really is. Your social bottom line is increased by having fair and beneficial labour practices and through corporate community involvement, and can also be measured in the impact of your business activities on the local economy. For example, some questions you can ask yourself when measuring Corporate Social Responsibility are:. After all, if your business is not nurturing positive relationships with your community, your client base and employee pool shrinks accordingly.
Get PDF of this article. Sustainability has been an often mentioned goal of businesses, nonprofits and governments in the past decade, yet measuring the degree to which an organization is being sustainable or pursuing sustainable growth can be difficult. John Elkington strove to measure sustainability during the mids by encompassing a new framework to measure performance in corporate America. By focusing on comprehensive investment results—that is, with respect to performance along the interrelated dimensions of profits, people and the planet—triple bottom line reporting can be an important tool to support sustainability goals.
The calculation aims to measure the financial, social and environmental performance of the corporation over a period of time and argues that only a company that produces a TBL is taking account of the full cost involved in doing business. And for companies looking to maximize their triple bottom line outcomes, upgrading and developing human capital is an essential part of achieving that metric. Growing awareness of TBL has impacted people policies at every level and in every geography. Sourcing policies have received attention, where companies have started to keep a closer eye on the ethical standards of their suppliers in markets where labor is unregulated and manufacturers are able to ride roughshod over social and environmental standards. At the other end of the spectrum, maintaining community connections and building alumni networks feeds into TBL policies.
Companies are geared to making profits and typically focus on the impact of their actions on their bottom line, or earnings. John Elkington came up with the concept of the triple bottom line. Triple-bottom-line reporting means that a business has to report the effect of social and environmental aspects of the business, rather than just financial aspects.