What is the Triple Bottom Line agenda?
Abbreviated as “TBL” or “3BL”, and also known as “people, planet, profit” – is the idea that companies are measured as being successful using societal and environmental criteria and not just economic criteria.
Why Triple Bottom Line reporting?
It could be argued that “to create long-term economic value for society – shareholders and other stakeholders alike – companies must also create social and environmental value.”
In the simplest terms, the TBL agenda focuses corporations:
Not just on the economic value that they add, but also on the environmental and social value that they add – or destroy.
What is stated objective goal of TBL reporting?
What does it mean in today’s context of greater awareness and non-acceptance of corporate social irresponsibility?
Companies are realizing that they have a competitive advantage in producing these reports.
What benefits do companies have?
It increases levels of trust with consumers, they gain credibility, and it has the potential to attract new investment and employees.
Figure: Today – Tomorrow – Our Goal
Why did the TBL reporting begin to become widespread only since the late 1990s?
Because of the internal and external pressure on companies to take responsibility and be held accountable for their social and environmental impact.
Are there any problems now because of the increase in companies producing these TBL reports?
It is simply unclear what standards should be used to evaluate these reports, which makes distinguishing good reports from bad ones difficult.
How to overcome the reporting standard Problem?
The Global Reporting Initiative (GRI) is an effort to deal with this problem.
What are the GRI?
The Global Reporting Initiative (GRI) is the most prevalent and emerging universal standard for reporting the social impact of companies.
To achieve sustainability, a school, government, or any other entity must appreciate the…?
Interdependence of environment, economy and society.
What does triple bottom line accounting means, in practical terms?
Expanding the traditional reporting framework to take into account ecological and social performance in addition to financial performance.
In 1981 Freer Spreckley first articulated the triple bottom line in a publication called ‘Social Audit – A Management Tool for Co-operative Working’
The phrase was coined by John Elkington in his 1998 book Cannibals with Forks: the Triple Bottom Line of 21st Century Business.