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. Interest in triple bottom line accounting has been growing across for-profit, nonprofit and government sectors.
Triple bottom line
The Triple Bottom Line - The TBL 3Ps from podvorie.info
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. Today, more leaders have begun to think sustainably. The triple bottom line theory expands the traditional accounting framework to include two other performance areas: the social and environmental impacts of their company.
The Triple Bottom Line
October 25, John Elkington is a world authority on corporate responsibility and sustainable development. He is currently Founding Partner and Executive Chairman of Volans , a future-focused business working at the intersection of the sustainability, entrepreneurship and innovation movements. Tell us why and what this means going forward.
This accounting framework measures financial results, but also includes environmental and social factors to determine a business's ultimate value. Most businesses are focused on profit; after all, that's the reason they exist, right? But a modern perspective on sustainability is starting to take root in many businesses, and it holds the potential to redefine success. But once these activities are adopted, how are they tracked? Many business, nonprofit and government entities have adopted a triple bottom line TBL approach.