Elkington's Triple Bottom Line

What was Elkington's purpose for it?
1. A way of thinking about a business's social responsibility and not just a method of measuring performance
What are the three main areas?
1. Profit
  1. Most familiar for managers
  2. Figures recorded in firm's financial statements
  3. Can help sustain the broader community in which the business operates
2. People
  1. Social responsibility
    1. Managing its business to take into account the interests of society in general, especially stakeholders
  2. Health and safety matters
    1. Safe working environments
  3. Financial matters
    1. Fair pay to employees
    2. Paying suppliers fair prices promptly
3. Planet
  1. Minimise impacts of activities on environment
    1. Actions
      1. Reducing carbon emissions, easily measurable
      2. Reducing wate
      3. Sustainable sources of raw materials
Benefits of using the triple bottom line
1. Encourages businesses to think beyond just profit
What is it?
1. Management tool allowing managers to think of the repercussions of their actions not just on profits but on society and the enironment
Limitations
1. Profit can be quantified whereas 'people' and 'planet' can only be measured qualitatively
2. The conventional way on measuring performance is through profits

Resource summary

	Created by Shamil Jeeawoody over 7 years ago