Triple bottom line
The triple bottom line measures organisational performance on three dimensions — profit, people and planet — rather than financial profit alone, reporting social and environmental results alongside it.
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A manufacturer's triple bottom line report discloses three separate figures for the year: €80,000 of accounting profit, 300 hours of paid staff volunteering, and 25 tonnes of CO2 emissions avoided by a solar installation. None of the three lines is combined into the others; each stands on its own.
Where it fits
SubjectManagerial AccountingCoreTopicStrategic Performance & the Balanced ScorecardCore
Check yourself
PracticeCORE
Which one of the following belongs to the 'planet' line of a triple bottom line report, rather than the profit or people lines?
Select an answer to check your understanding.