This essay is a short introduction to the importance of the triple bottom line. What are the three frameworks of the triple bottom line? What does the triple bottom line mean for a company? How does...

Running head: TRIPLE BOTTOM LINE 1
Triple Bottom Line
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TRIPLE BOTTOM LINE 2
What are the three frameworks of the triple bottom line?
Triple bottom line (TBL) is an accounting framework propounded by John Elkington
in 1994. This concept enunciates the inclusion of three dimensions namely, planet, profit and
people for sustainable development of an organisation (Elkington, 1997). It is a
comprehensive framework for measuring the performance of a business with respect to all the
three dimensions. TBL assesses the impact of the activities of an organisation on the three
dimensions thereby focusing on sustainability. The three aspects are discussed below (Zak,
2015):
a. Financial Dimension: This dimension assesses the performance in terms of
revenue generated, profit, cost saving and dividend earned for shareholders. It
ensures that company allocates its resources efficiently so as to earn long term
growth and profitability.
b. Social Dimension: This dimension evaluates the impact of activities of firm on
the community at large. The social initiatives taken by corporate such as
education, poverty alleviation, community awareness, equal opportunity
provisions, empowerment initiatives, training programs, charity and grants
indicate the efforts towards the welfare of people.
c. Environmental Dimension: This dimension requires that the impact of systems,
processes and technology employed by a firm should be minimal on environment.
The firms remain vigilant by adopting environment management practices such as
waste management, reduction in non-renewable resources consumption and
pollutants control to lessen the impact of environment.
What does the triple bottom line mean for a company?
TBL is an...