Elkington's Triple Bottom Line

Elkington's Triple Bottom Line

1. What was Elkington's purpose for it?

   • A way of thinking about a business's social responsibility and not just a method of measuring performance

2. What are the three main areas?

   • Profit
     • Most familiar for managers
     • Figures recorded in firm's financial statements
     • Can help sustain the broader community in which the business operates
   • People
     • Social responsibility
       • Managing its business to take into account the interests of society in general, especially stakeholders
     • Health and safety matters
       • Safe working environments
     • Financial matters
       • Fair pay to employees
       • Paying suppliers fair prices promptly
   • Planet
     • Minimise impacts of activities on environment
       • Actions
         • Reducing carbon emissions, easily measurable
         • Reducing wate
         • Sustainable sources of raw materials

3. Benefits of using the triple bottom line

   • Encourages businesses to think beyond just profit

4. What is it?

   • Management tool allowing managers to think of the repercussions of their actions not just on profits but on society and the enironment

5. Limitations

   • Profit can be quantified whereas 'people' and 'planet' can only be measured qualitatively
   • The conventional way on measuring performance is through profits