Pressure is growing from governments and their citizens for business to measure and manage the impacts and outcomes of its behaviour in a range of areas. Elkington, J. Report bugs here. Please share your general feedback.
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. The Triple Bottom Line approach Profit, People and Planet arose out of frustration with traditional, financially-focused measures of business performance, which have tended to emphasise profit as the key metric.
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.
Product and service reviews are conducted independently by our editorial team, but we sometimes make money when you click on links. Learn more. Historically, most companies' time, energy and resources have focused on their bottom lines — securing the best financial performance for their shareholders. However, times are changing, and today's consumers and employees are more engaged and socially conscious.
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