Investopedia

Continue to Site »

Triple Bottom Line

Filed Under » ,
Dictionary Says

Definition of 'Triple Bottom Line'

A phrase coined in 1994 by John Elkington and later used in his 1997 book "Cannibals With Forks: The Triple Bottom Line Of 21st Century Business" describing the separate financial, social and environmental "bottom lines" of companies. A triple bottom line measures the company's economic value, "people account" – which measures the company's degree of social responsibility and the company's "planet account" – which measures the company's environmental responsibility. Elkington argued that companies should prepare three bottom lines – the triple bottom line – instead of focusing solely on its finances, thereby giving consideration to the company's social, economic and environmental impact.

Also called "TBL," "3BL," "People, Planet, Profit" and "The Three Pillars."
Investopedia Says

Investopedia explains 'Triple Bottom Line'

Elkington's triple bottom line is intended to advance the goal of sustainability in business practices. The three measures include: profit (the economic value created by the company, or the economic benefit to the surrounding community and society), people (the fair and favorable business practices regarding labor and the community in which the company conducts its business) and planet (the use of sustainable environmental practices and the reduction of environment impact).

A challenge with the triple bottom line is that it is difficult to compare the people and planet accounts in terms of cash – the way the profit account is measured. As such, the three separate accounts cannot be added or combined, and must be considered separately.

Articles Of Interest

  1.

    Impact Investing: The Ethical Choice

    This new wave in ethical investing is taking a new approach. Find out how it differs from its predecessors.

  2. Socially Responsible Mutual Funds

    It is possible to avoid unethical investments and still profit from mutual funds. Find out how!

  3. What Does It Mean To Be Green?

    Green investing is the new buzz word for companies and investors. Find out what it means.

  4. Forget Green Stocks, "Green" Will Do

    More and more companies are "going green", but that term, in itself, can be subjective.

  5. Can Business Evolve In A Green World?

    Learn how global warming is starting to heat up America's corporate climate.

  6. The Path To Becoming A CEO

    Think you have what it takes to be chief executive? Find out what those at the top have in common.

  7. Leading Economic Indicators Predict Market Trends

    Leading indicators help investors to predict and react to where the market is headed.

  8. Wall Street Writers: A Behind-The-Scenes Career

    Regulators, sales people and clients all look to communications professionals to help them navigate the markets.

  9. Wall Street’s Glass Ceiling

    It’s tough to boast that there are more female CEOs than ever before when they make up only 4.2% of the total.

  10. Internships: Find The Best One For You

    It only takes a little legwork to land a prestigious career while you're still in college.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center
Array ( )
taggroups(for debug only):
Array ( [0] => Economy And Economics [1] => Economics )