The Triple Bottom Line - Essay Example

Comments (0) Cite this document
This essay discusses the article "The Triple Bottom Line: What Is It and How Does It Work" written by Timothy F. Slaper and Tanya J. Hall highlights the importance of sustainable development. Authors argue about sustainability that has often been cited as one of the primary goals for organizations…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.8% of users find it useful
The Triple Bottom Line
Read TextPreview

Extract of sample "The Triple Bottom Line"

The Triple Bottom Line: What Is It and How Does It Work? Introduction The article, ‘The Triple Bottom Line: What Is It and How Does It Work?’ written by Timothy F. Slaper and Tanya J. Hall highlights the importance of sustainable development. The authors argue that while sustainability has often been cited as one of the primary goals for organizations, measuring it still remains a challenge.
The authors draw the attention of the reader toward the ‘Triple Bottom Line’ (TBL) approach, also referred to as the 3Ps approach, put forth by John Elkington in the mid-1990s. The paper is a rich source of information on the TBL accounting framework which takes into consideration the economic (profit), environmental (planet) and social (people) impact of business decisions.
Variations in the TBL Approach
Prior to the emergence of the TBL approach, academicians and industry practitioners grappled with finding a true measure of sustainability. The TBL approach resolved this issue. However, the three dimensions of the TBL approach do not have a common unit of measurement so ascertaining the sustainability performance of an organization is not straightforward.
Some experts suggest assigning a monetary value to all the 3Ps. The detractors claim that while profits can be measured in dollars, the environmental impact and social impact cannot be measured in dollar terms. Another school of thought suggests that an index be created which will allow for logical comparisons of sustainability performance of organizations. The discord in this approach is regarding the weights to be assigned to the three dimensions of TBL. Which of the 3Ps is most important; people, planet or profits? Who will decide this? There is no clear cut answer. The authors opine that each of the parameters of TBL should have different units of measurement and should have different metrics.
The authors then throw light on the fact that there is no universal method of calculating the TBL. A couple of variations of the TBL measurement; namely The Genuine Progress Indicator (GPI) that comprises 25 variables and Minnesota Progress Indicator that includes 42 variables and have also been mentioned in the paper.
Another important learning from the paper is the appropriate measures to be used while gauging the TBL performance of an organization or of a particular project. Personal income, job growth, revenue generated are some of the economic measures while hazardous waste management, electricity consumption, solid waste management and change in land use are some of the environmental measures. The potential social measures include unemployment rate, relative poverty and health-adjusted life expectancy. In the ultimate analysis, the data availability will determine which measures are incorporated in the TBL accounting framework.
Application of TBL Approach
Behemoths like General Electric (GE), Unilever, Proctor and Gamble (P&G) and 3M use the TBL scorecard, albeit with different variables. Likewise nonprofit organizations use variables that fall within the ambit of their operations. For instance RSF Social Finance uses support towards sustainable food and agriculture as an economic variable, funding towards ecological stewardship as an environmental variable and financial support towards education and arts as a social variable. The use of TBL approach has made way into the government sector also. The State of Maryland has adopted the blended GPI-TBL framework to measure its wealth as well as well-being.
There are numerous takeaways from this article. It draws attention towards the emergence of TBL approach as a means to gauge the ramifications of decisions from a long-run perspective. The paper highlights the limitations of the TBL accounting framework and also suggests that with suitable variations and modifications, it can be applied to different settings including profit and not-for-profit organizations and the government sector.
Works Cited
Slaper, Timothy F., and Tanya J. Hall. The Triple Bottom Line: What Is It And How Does It Work? , 2011. Web. 11 Nov. 2015. Read More
Cite this document
  • APA
  • MLA
(“The Triple Bottom Line Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
The Triple Bottom Line Essay Example | Topics and Well Written Essays - 500 words. Retrieved from
(The Triple Bottom Line Essay Example | Topics and Well Written Essays - 500 Words)
The Triple Bottom Line Essay Example | Topics and Well Written Essays - 500 Words.
“The Triple Bottom Line Essay Example | Topics and Well Written Essays - 500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Implication Of The Use Of The Triple Bottom Line Approach In The Events Industry

...?Implication of the use of the Triple Bottom Line Approach in the Events Industry The Triple Bottom Line Approach All over the world, businesses are judged based on how well they are doing in terms of the profits and revenue they are able to generate for themselves and their stakeholders. In due course of time, it was pointed out that just judging an organization based on the profits made was not enough. An organization needed to put some effort into keeping the people associated with it happy and also needed to give back to the planet. This would be the proper judge of an organization’s success. This led to the formation of the Triple Bottom Line Approach. The Triple Bottom Line Approach is also known as the ‘people-planet-profit... in...
8 Pages(2000 words)Essay

The Implications of the Use of the Triple Bottom Line Approach

...The Implications of the Use of the Triple Bottom Line Approach Table of Contents Key concept of Triple Bottom Line approach 2 Advantages of TBL approach 4 Limitation of TBL approach 5 Application of Triple Bottom Line in event industry 5 Case study of Edinburgh Festival 7 Area need to be improved 8 Reference 10 Bibliography 12 Introduction In the contemporary business environment, companies should not just focus on financial benefit and growth in the profit margins. Though the main aim of a business should be maximisation of investor’s wealth, but solely relying on this aspect cannot help to gain sustainable growth in the long term. Therefore, companies should take into account both social and environmental issues along... with the...
10 Pages(2500 words)Essay

An Appraisal of the Triple Bottom Line Approach: Case Analysis of the Glastonbury Festival

...?AN APPRAISAL OF THE TRIPLE BOTTOM LINE APPROACH: CASE ANALYSIS OF THE GLASTONBURY FESTIVAL Executive Summary For a business, an organization, an event or an activity to continue its existence, a variety of factors should be taken into consideration by the organizers or by the management. One of the prominent schemes that most companies and evaluating organizations employ is the Triple Bottom Line Approach or the TBL Approach. This approach utilizes three eminent aspects namely, the social, environmental and economic elements. The Triple Bottom Line or TBL Approach endeavors to achieve...
8 Pages(2000 words)Essay

Triple Bottom Line Approach

...? The implications of the use of the Triple Bottom Line approach in the events industry: A case study of Pamplola Bull-running Fiesta Contents The implications of the use of the Triple Bottom Line approach in the events industry: A case study of Pamplola Bull-running Fiesta 1 1 Contents 2 Introduction 3 The Event 4 Stakeholders 6 Impact of event 7 Link between stakeholders and impacts 9 Conclusion 10 Reference 12 Introduction The 21st century challenges the businesses to fundamentally change the way the businesses operates. With upcoming issues such as depletion of the natural resources, climate changes and also energy crises have hit the organisation and have demanded that attention should be paid to various aspect of a business... and...
10 Pages(2500 words)Essay

Critically evaluate the management of sustainability at Barclays through the triple bottom line, and critically comment on the c

... attitudes to sustainability conducted by UNEP and Standard and Poor’s Rabo bank of Netherlands with 70% score ranks fourth in the world ahead of several MNEs in manufacturing and other industries indicates that it is the willingness and policies of the companies that matters in environmental commitments rather than type of business. (UNEP, 2006) Elkington’s triple bottom line Salzman et al. (2005, p. 28) stated “The theoretical studies are based on frameworks that aim to explain the nature of the relationship between financial performance (FP) on the one hand and environmental (EP) or social performance (SP) on the other.” Elkington (2004, p 3) focused “corporations not just on the economic value that they add, but also... . Using...
12 Pages(3000 words)Essay

Triple bottom line (TBL)

...?Triple bottom line (TBL) XXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXX XXXXXXXXXXXXX XXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXX Table of contents 1. Introduction 2. Organization profile 3. Investigation methods 3.1.1. Method for literature review (part 1) 3.1.2. Method for the fieldwork (part 2) 3.1.3. Method for delivering part 3 4. Discussion findings 5. Literature review (part 1) 6. Chosen company CSR activities (part 2) 7. Evaluation of Relevance of CSR for company (part 3) 8. Conclusions 9. References 10. Appendix Introduction Triple bottom line and corporate social responsibility go hand in hand. Over the years, corporate social responsibility has...
6 Pages(1500 words)Essay

Critically assess the sustainability policy of a leisure/events business and create linkages to the Triple-Bottom-Line theory

...Line Approach ‘Organise This Limited’ strictly believes in the synchronization of individuals’ globe and earnings. The company continually struggle to motivate as well as sanction the talent to incorporate values of Corporate Social Responsibility in their everyday work for clientele. It is company’s vision that by 2013, it will apply triple bottom line reporting for every clientele plan as well as for business’s reporting. The triple bottom line plan is intended to resonate with business intelligence and facilitates the company in understanding the effects of its business activity with respect to economic, social and...
10 Pages(2500 words)Essay

The Triple Bottom Line

...THE TRIPLE BOTTOM LINE Lecturer: THE TRIPLE BOTTOM LINE The core essence of the triple bottom line (TBL) is to measure an organization’s overall performance by incorporating financial health, environmental sustainability, and furtherance of social justice (Shrivastava & Berger, 2010). From this definition alone, it is possible to notice that any organization that implements TBL would be one that focuses on overall growth rather than looking only at financial profitability. This was the exact way in which the implementation of TBL in my previous organization would have affected...
2 Pages(500 words)Assignment

Triple Bottom Line

...THE TRIPLE BOTTOM LINE By Location Introduction The traditional business accounting frameworks define a bottom line as the figure of net profit or loss recorded at the end of a statement of an organisation’s financial activities in terms of expenditure and revenue. Over the years, advocates of social justice as well as environmentalists endeavoured to have a broader definition of this aspect through the incorporation of full cost accounting. The aim was to incorporate the environmental and social impacts of the organisational activities in the calculation of bottom lines. The result was the development of the...
12 Pages(3000 words)Essay

Triple Bottom Line

...TRIPLE BOTTOM LINE Affiliation: Triple Bottom Line Triple bottom line is an accounting framework with three major components of performance that include social, environmental and financial (Slaper and Hall 2011). These components also assume three divisions that include people, planet, and profit. In an organization, these components are crucial for the sustainability of the organization. The components have a linkage, and an organization has to consider them for their business to thrive (Savitz and Weber 2012). The people component involves the benefits people or the community near the...
1 Pages(250 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The Triple Bottom Line for FREE!

Contact Us