Triple Bottom line Flashcards
What is the triple bottom line?
identifies 3 measures of assessing performance; people, planet, profit
What is profit measurement?
ROCE, Net profit, margins, gearing
What is people measurement?
Social Responsibility, employee welfare, support for local community, supplier relations
What is planet measurement?
Measuring the extent to which activities are environmentally friendly, emission statistics
What is sustainable development?
Balancing all 3, taking into account everyone’s needs, steady levels of economic growth and careful uses of natural resources
What are some problems with this model?
Profit can be measured with quantitative data
People and planet harder to measure, qualitative
Data driven businesses prioritise profit
not enforceable
What are some benefits of this approach?
Businesses think beyond profit
Supports environment
Encourages CSR
Sustainable
How can it impact performance?
Staff paid more, productive but profits?
Using more sustainable materials, good for env but expensive? can build loyalty in customers
