Triple bottom line business

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The three pillars are a key component to good corporate citizenship through sustainability. Profit is obvious. But 3BL sees profit as only one part of a business plan. Profit is seen in terms of total value, with all input costs deducted, including tied-up capital. Further, profit in this case is seen as what economically benefits society at large.

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The Triple Bottom Line Goal of Sustainable Businesses

The Triple Bottom Line Goal of Sustainable Businesses

Rob Gray has received funds from a wide range of organizations over the years. His last research grant was from ACCA and no conflict of interest arises from that.. Markus J. Milne does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment. The triple bottom line is a term coined in the late s by the influential business thinker and consultant, John Elkington. It captures a very neat idea, namely that a modern organisation has three broad areas of impact: economic, social and environmental. While we measure one of these through financial profit, we have no systematic means of measuring the other two.

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The Bottom Line of Corporate Good

This is evident with legislation, such as the Sarbanes-Oxley Act, as well as the successful prosecution of corrupt executives from the aforementioned companies. Increasingly, boardrooms address ethical behavior based on the concept of the triple bottom line. The triple bottom line refers to the triad of profit, social responsibility, and stewardship of the environment, which are now part of the expanded scope of corporate concerns.

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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.