“I have never known much good done by those who profess to trade for the public good”-Adam Smith
Business is just more than making profits. The 3BLor the 3Ps certainly called as three pillars of a good corporate business. It is a higher version of accounting framework carried by the companies including people, planet and profit in order to maintain sustainable development.
Triple Bottom Line approach measures the company’s economic value with a thought process of optimum utilization of all resources to achieve and maintain sustainable growth with no unmet demands and be there enough for next upcoming generations to live upon.
The main objectives being -
Economic prosperity and continual development
Social well being and Equity
Environmental …show more content…
The era of maintaining profit or loss in the bottom line of the balance sheet and income statement of companies have grown much ahead and is now bound to follow different financial, social and environmental "bottom lines" of companies.
Comparison between the Two Approach :
Traditional Approach Triple Bottom Line Approach
All Accounting measures like Sales, ROI, ROA,ROS,PROFIT etc. People(Social), planet(Environmental) and profit(Economic) measures of sustainable development
The aim is to Maximize shareholder’s wealth. Company 's responsibility lies with stakeholders rather than shareholders. Stakeholders are anyone associated with the company including the Earth
Table 1: Comparison between Approaches
How Triple Bottom Line works:
Companies are responsible first and foremost to all their stakeholders, anyone directly or indirectly related to the company, including the planet which gives us …show more content…
This can include everybody from farmers supplying raw materials, on up to the CEO of the company and taking care of each of the entities involved in the value chain. The company has to offer Health care, safe place to work opportunities for advancement , education and no exploitation of labour force Fig 2: Creating Value By 3BL
Ref: www.basisbay.com
Purpose of 3BL:
1)For the socio cultural environment, the world view is observed.
• Views of Nature: Environmental Protection ,nature worship, and living in harmony with nature has to be without conflict and in sync with economic development.
• Views of Society: Concerns for the poor and the underprivileged, women and children-particularly nutritional status and education with inclusive and equitable growth will make the country better-off.
2)Companies using these impacts into their accounting methods will be more successful as it
• Delivers greater efficiency
• Inculcates more competition
• Brings innovation - all
• Drives sustainable profitability over time
3)A company that functions its business practices ethically, with integrity and cares for people it employs and serves will have better
Business is just more than making profits. The 3BLor the 3Ps certainly called as three pillars of a good corporate business. It is a higher version of accounting framework carried by the companies including people, planet and profit in order to maintain sustainable development.
Triple Bottom Line approach measures the company’s economic value with a thought process of optimum utilization of all resources to achieve and maintain sustainable growth with no unmet demands and be there enough for next upcoming generations to live upon.
The main objectives being -
Economic prosperity and continual development
Social well being and Equity
Environmental …show more content…
The era of maintaining profit or loss in the bottom line of the balance sheet and income statement of companies have grown much ahead and is now bound to follow different financial, social and environmental "bottom lines" of companies.
Comparison between the Two Approach :
Traditional Approach Triple Bottom Line Approach
All Accounting measures like Sales, ROI, ROA,ROS,PROFIT etc. People(Social), planet(Environmental) and profit(Economic) measures of sustainable development
The aim is to Maximize shareholder’s wealth. Company 's responsibility lies with stakeholders rather than shareholders. Stakeholders are anyone associated with the company including the Earth
Table 1: Comparison between Approaches
How Triple Bottom Line works:
Companies are responsible first and foremost to all their stakeholders, anyone directly or indirectly related to the company, including the planet which gives us …show more content…
This can include everybody from farmers supplying raw materials, on up to the CEO of the company and taking care of each of the entities involved in the value chain. The company has to offer Health care, safe place to work opportunities for advancement , education and no exploitation of labour force Fig 2: Creating Value By 3BL
Ref: www.basisbay.com
Purpose of 3BL:
1)For the socio cultural environment, the world view is observed.
• Views of Nature: Environmental Protection ,nature worship, and living in harmony with nature has to be without conflict and in sync with economic development.
• Views of Society: Concerns for the poor and the underprivileged, women and children-particularly nutritional status and education with inclusive and equitable growth will make the country better-off.
2)Companies using these impacts into their accounting methods will be more successful as it
• Delivers greater efficiency
• Inculcates more competition
• Brings innovation - all
• Drives sustainable profitability over time
3)A company that functions its business practices ethically, with integrity and cares for people it employs and serves will have better