The Triple Bottom Line (TBL) is a framework that expands traditional measures of business performance to include social and environmental measures in addition to financial performance. It is also known as the 3P framework, which stands for People, Planet, and Profit.
The three elements of the Triple Bottom Line are:
- People: This refers to the social aspect of business performance and includes considerations such as employee welfare, customer satisfaction, community engagement, and human rights.
- Planet: This refers to the environmental aspect of business performance and includes considerations such as the use of natural resources, environmental impact, and efforts to mitigate climate change.
- Profit: This refers to the financial aspect of business performance and includes considerations such as revenue, profitability, and return on investment.
The Triple Bottom Line framework recognizes that businesses have a responsibility to operate in a way that benefits society and the environment, not just their bottom line. By measuring and reporting on all three elements of the TBL, companies can demonstrate their commitment to sustainability, social responsibility, and ethical business practices.
