Accounting for your Actions
The bottom line in a company’s financial statement is the one that shows net income or loss—and was once considered to be the key indicator of an organization’s success. But today, the term triple bottom line is increasingly heard in boardrooms of the world’s biggest companies.
Defining the triple bottom line
The triple bottom line (TBL) is a measure—both in numbers and in words—of an organization’s economic, environmental, and social performance. It gauges how well a company fulfills its responsibilities to all its stakeholders.
There are two good reasons to adopt TBL reporting. First, in today’s world, companies are increasingly being brought to task for their wider activities and impacts—for the working conditions ...