The Triple Bottom Line

The Triple Bottom Line[1]

The triple bottom line (TBL or 3BL) focuses corporations not just on the economic value they add, but also on the environmental and social value of their activities. At its narrowest, the term ‘triple bottom line’ is used as a framework for measuring and reporting corporate performance against economic, social and environmental parameters. In a broader sense the the term embraces the set of values, issues and processes that companies should address in order to create economic, social and environmental value whilst at the same time minimising the undesirable consequences of their activities.

The triple bottom line involves taking into consideration the needs of all the company’s stakeholders – shareholders, customers, employees, business partners, governments, local communities, the public and arguably nature itself..

Traditionally, companies and governments have tended to only report on economic factors leading to the social and environmental aspects of decision making being out prioritised. This is now beginning to change with companies and governments increasingly being pressured to report on their triple bottom line.

The formation of the Global Reporting Initiative (GRI) is one development that has led to the triple bottom line being adopted as a legitimate and useful tool for companies and governments to report on their social and environmental progress as well as their economic progress.

At TecEco we are continually working to ensure that we meet the highest of standards on all three measures of the triple bottom line.

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[1] Source: CSIRO Process Magazine May 2003