A TBL company endeavors to benefit the natural order as much as possible or at the least do no harm and minimize environmental impact. Consider a clothing manufacturer whose best way to maximize profits might be to hire the least expensive labor possible and to dispose of manufacturing waste in the cheapest way possible.
Therefore, an original TBL approach cannot be interpreted as simply traditional corporate accounting profit plus social and environmental impacts unless the "profits" of other entities are included as a social benefit.
And planet can be divided into a multitude of subdivisions, although reduce, reuse and recycle is a succinct way of steering through this division. What is the Triple Bottom Line?
To address financial bottom line profitability concerns, some argue that focusing on the TBL will indeed increase profit for the shareholders in the long run. Or do you buy cheaper products that create issues in other areas? What are your employee demographics?
While the number of social enterprises is growing,  and with the entry of the B Corp movement there is more demand from consumers and investors for an accounting for social and environmental impact.
These challenges aside, the TBL framework allows organizations to evaluate the ramifications of their decisions from a truly long-run perspective. Currently, the cost of disposing of non-degradable or toxic products is borne financially by governments and environmentally by the residents near the disposal site and elsewhere.
Consider a clothing manufacturer whose best way to maximize profits might be to hire the least expensive labor possible and to dispose of manufacturing waste in the cheapest way possible.
Except for a couple of sustainability frameworks, the accessibility components and measures can be easily organized into the three TBL categories economic, social and environmental.
It would be more equitable for the business which manufactures and sells a problematic product to bear part of the cost of its ultimate disposal. Generally, sustainability reporting metrics are better quantified and standardized for environmental issues than for social ones.
For example, people may be unwilling to undergo a depression or even sustained recession to replenish lost ecosystems.
An Assessment of Progress Indicators," Marchwww. The primary benefit of embedding one approach to measurement of these deficits would be first to direct monetary policy to reduce them, and eventually achieve a global monetary reform by which they could be systematically and globally reduced in some uniform way.
Does it benefit children and their families by allowing them to rise out of poverty, or does it perpetuate poverty by denying children sufficient time to get educated and deprive them of a carefree childhood? A Tool for Sustainable Development," www. The upside of this lack of standardized measurement is that metrics can be adopted that make the most sense for each organization, project or location.
Click the button below to download your copy today.The triple bottom line theory expands the traditional accounting framework to include two other performance areas: the social and environmental impacts of their company.
These three bottom lines are often referred to as the three P’s: people, planet, and profit. And one approach to building a company like this, and monitoring what it does, is to use "the triple bottom line." What Is the Triple Bottom Line?
The triple bottom line was first fully explained by John Elkington in his book, "Cannibals With Forks: The Triple Bottom Line of 21st Century Business.". The triple bottom line (TBL) thus consists of three Ps: profit, people and planet.
It aims to measure the financial, social and environmental performance of the corporation over a period of time.
Interest in triple bottom line accounting has been growing across for-profit, nonprofit and government sectors. Many businesses and nonprofit organizations have adopted the TBL sustainability framework to evaluate their performance, and a similar approach has gained currency with governments at the federal, state and local levels.
Sep 14, · The triple bottom line (also known as 3BL, the three Ps and the three pillars) puts into concrete terms what we already know: there’s more to business than just making money. You could even say.
Start studying Management Chapter 5. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Which of the following is an advantage of a triple-bottom line approach? A. Management CHAPTER 4.
91 terms. MGT Chapter 3 Gur Test Bank. 93 terms.
MGT Chapter 1 Gur Test Bank.Download