Triple bottom line audit

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The Triple Bottom Line is one of the main systems being used by businesses to assess the profits they are making through their corporate sustainability solutions. The Triple Bottom Line method asks you to see beyond the traditional bottom line of business to the profits that your business makes socially, environmentally, and economically. Measuring your business using the Triple Bottom Line is one of the best markers of how sustainable your business is, and how profitable it really is.

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ESC advocates held that investors should target companies with a proven track record in environmental and social responsibility. Triple bottom line auditing was devised to measure that track record. Those decisions encouraged financial institutions to create ethical investment funds and companies to adopt triple balance sheet auditing.

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Triple bottom line TBL accounting widens the conventional reporting structure to include ecological and social performance, in addition to economic performance. Furthermore, the notion of TBL underlies a company having obligations not only to its shareholders, but also to a wider spectrum of stakeholders, including the environment. Skip to main content Skip to table of contents.

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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.

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The triple bottom line TBL is a framework or theory that recommends that companies commit to focus on social and environmental concerns just as they do on profits. The TBL posits that instead of one bottom line, there should be three: profit, people, and the planet. A TBL seeks to gauge a corporation's level of commitment to corporate social responsibility and its impact on the environment over time.

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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.

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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.

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Don't have an ID? A social, economic and environmental audit. Important day international day to end impunity for crimes against journalists - 2 november. Read more.

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The world is changing, and it is changing for the better. We may not see it, many would not admit it, and some would say the opposite. We are still far from the ideal situation, of course — way too many people starve every day, we still kill each other, and welfare is not efficiently distributed.

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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.


    4 thoughts on “Triple bottom line audit

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