Triple Bottom Line What is a Triple Bottom
Triple Bottom Line
What is a “Triple Bottom Line”? A Triple Bottom Line is a phrase coined by John Elkington in 1994. the idea of the triple bottom line is to measure companies economic value measures the company's economic value, by their degree of social responsibility and environmental responsibility rather than solely focusing on their finances. Elkington argued that companies should prepare three bottom lines: People, Planet and Profit, thereby giving consideration to the company's social, economic and environmental impact.
Social Measures Social variables refer to social dimensions of a community or region and include measurements of education, equity and access to social resources, health and well-being, quality of life, and social capital. The examples listed below are a small snippet of potential variables: • Unemployment rate • Female labour force participation rate • Median household income • Relative poverty • Percentage of population with a post-secondary degree or certificate • Average commute time • Health-adjusted life expectancy
Environmental Measures Environmental variables should represent measurements of natural resources and reflect potential influences to its viability. It could incorporate air and water quality, energy consumption, natural resources, solid and toxic waste, and land use/land cover. Ideally, having long-range trends available for each of the environmental variables would help organizations identify the impacts a project or policy would have on the area. Specific examples include: • Sulphur dioxide concentration • Concentration of nitrogen oxides • Selected priority pollutants • Excessive nutrients • Electricity consumption • Fossil fuel consumption • Solid waste management • Hazardous waste management • Change in land use/land cover
Economic measures Economic variables ought to be variables that deal with the bottom line and the flow of money. It could look at income or expenditures, taxes, business climate factors, employment, and business diversity factors. Specific examples include: • Personal income • Cost of underemployment • Establishment churn • Establishment sizes • Job growth • Employment distribution by sector • Percentage of firms in each sector • Revenue by sector contributing to gross state product
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