Triple bottom line social component

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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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The triple bottom line TBL is a framework or theory that recommends that companies commit to focus on social and environmental concerns just as they do on profits. The TBL posits that instead of one bottom line, there should be three: profit, people, and the planet. A TBL seeks to gauge a corporation's level of commitment to corporate social responsibility and its impact on the environment over time.

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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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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. Over the last 50 years, environmentalists and social justice advocates have struggled to bring a broader definition of bottom line into public consciousness by introducing full cost accounting.

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It was the old time when business companies were only concerned about their profits and revenues. With the change in time, many innovations and modifications cropped up. We have begun caring about our environment and become aware of its present conditions.

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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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Elkington's Triple Bottom Line model is an influential model that has helped share the corporate social responsibility agenda. The short video below provides an overview of Elkington's Triple Bottom Line model and there are some additional study notes below the video. The Triple Bottom Line is a concept that encourages the assessment of overall business performance based on three important areas: Profit, People and Planet.

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The phrase " the triple bottom line " was first coined in by John Elkington. He highlighted that companies should be preparing three different bottom lines. One is the profit and loss account. The second is the bottom line of a company's " people account ".

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Sustainability is often identified as a primary goal of businesses and organizations, but actually measuring sustainability can be a challenge. One way to do this is to create measurements that track more subtle examples of sustainability — and the triple bottom line approach to reporting is ideal for this. By identifying alternative measurements of impact, organizations can measure sustainability performance as well as methodology.

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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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