ACCA Applied Knowledge · Business and Technology · Sustainable business practices
A company reports on its financial performance, its impact on the environment and its impact on society. Which concept does this three-part approach describe?
This is the triple bottom line. It assesses an organisation on economic (profit), social (people) and environmental (planet) performance, rather than on financial results alone. It is a standard sustainability reporting concept, distinct from the balanced scorecard.
- AThe balanced scorecard
- BThe triple bottom lineCorrect
- CThe value chain
- DThe stakeholder mapping matrix
Explanation
The triple bottom line, linked to Elkington, measures performance across profit, people and planet (economic, social and environmental). The balanced scorecard has customer, internal process, learning and financial perspectives, so it is not the three-part approach described.
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