Understanding Triple Bottom line an accounting framework coined by Sir.John Elkington.
Triple Bottom Line & Sustainability 25 years ago, John Elkington coined the “Triple Bottom Line” of People, Planet and Profit (also known as the 3Ps, TBL or 3BL). Up to today, it is still gaining popularity and it has become part of everyday business language. This was something new to me. I had never heard this term before. My questions were, how an accounting framework would have a connection with sustainability. I tried to research, ask my parents who are both MBAs to simplify and help me understand this concept. I have researched the topic and these are my findings: The triple bottom line is a business concept that posits firms should commit to measuring their social and environmental impact—in addition to their financial performance—rather than solely focusing on generating profit, or the standard “bottom line.” It can be broken down into “three Ps”: profit, people, and the planet. In economics, the triple bottom line (TBL) maintains that companies should commit to...
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