Skip to content

ACCA Applied Knowledge · Business and Technology · Governance in business organisations

A company publishes a report showing its financial, social and environmental performance, measured as 'profit, people and planet'. Which concept does this describe?

This is the triple bottom line, which assesses an organisation on economic, social and environmental performance, summarised as profit, people and planet. It widens reporting beyond financial results, unlike the balanced scorecard, which uses financial, customer, internal process and learning perspectives.

  1. AThe balanced scorecard
  2. BThe triple bottom lineCorrect
  3. CPorter's value chain
  4. DThe Pareto principle

Explanation

The triple bottom line, coined by John Elkington, reports economic (profit), social (people) and environmental (planet) performance. The balanced scorecard measures strategic performance across four perspectives including customer and internal processes, not people and planet in this way.

Did you get it right without looking?

One question tells you little. A timed set on Governance in business organisations shows your real accuracy, how long you take and where you lose marks.

Practise Governance in business organisationsFree diagnostic mock

More Governance in business organisations questions