Triple Bottom Line (TBL)

Corporate social responsibility mandates usually revolve around the triple bottom line approach to organisational sustainability (CIPS: Balancing commercial and sustainability issues purpose).

Information about Triple Bottom Line (TBL)

Corporate leaders continue to face the challenge of running competitive and profitable organisations while meeting broad social and ethical responsibilities (Morimoto et al., 2005). These challenges are subsumed under the general banner of CSR which requires companies to integrate their social and environmental concerns in business operations and in interaction with stakeholders on a voluntary basis (European Commission, 2005).

TBL is embedded into a company's CSR and is closely related to the 3Ps. The first bottom line is the traditional measure of economic/corporate 'profitability' (profit and loss account). The second refers to the company’s 'people' account and measures the level of socially responsible behaviour in an organisation. The third is the company’s 'planet' account which measures the degree of a company's environmental responsibility in its current and previous practices (Hindle, 2008). 

Return to Sustainability topic.

Related concepts

Supplier Diversity - What is it?

‘Diversity’ refers to the idea of variety, a central feature of the world that we and other species inhabit. Given current trends, diversity can be seen as an asset that can be exploited...

Find out more

The importance of water to Australian supply chains

In good times, extractive industries have benefited from high demand and prices, with the Australian economy enjoying a growth in exports. The current global economic recession paints a...

Find out more

Ethical Sourcing, Organisations and Brands

In the area of ethical sourcing, the role of the P & SM professional has never been more dynamic, with challenges from a stakeholder base willing and able to voice their opinions on...

Find out more