Triple bottom line definition
/What is the Triple Bottom Line?
The triple bottom line refers to the financial, social, and environmental results of a business. Each of these results focuses on a different activity – generating a financial return for investors, having a positive impact on people, and having a positive impact on the planet. The intent behind this manner of reporting is to make corporate managers more aware of their responsibilities outside of the more traditional focus on returns to investors.
Problems with the Triple Bottom Line
A difficulty with this more comprehensive method of reporting is the problems associated with quantifying results for the last two areas. A further concern is that shareholders are primarily interested in the financial results of a business, and so are more likely to ignore the reporting of social and environmental results by a business.