Triple Bottom Line

• What is triple bottom line?

  encourages the assessment of overall business performance based on three important areas - profit, people, planet
• Limitations

  -businesses are usually assumed to be profit-maximisers

  -profit is the traditional measure of business success

  -profit is closely linked with business value

  -profit is often the basis for financial incentives
• Benefits

  -encourages businesses to think beyond narrow measure of performance

  -encouraged CSR reporting

  -supports measurements of environmental impact and extent of sustainability
• Criticisms

  -not very useful

  -hard to rely on

  -no legal requirement to report it