ACCA Applied Knowledge · Business and Technology · Sustainable business practices
A manufacturer publishes a report that measures its performance against economic, social and environmental results, rather than financial results alone. Which approach to measurement does this describe?
This is triple bottom line reporting. It assesses an organisation on economic, social and environmental performance (profit, people, planet) instead of profit alone. The balanced scorecard uses different perspectives, and statutory reporting is limited to financial results.
- ATriple bottom line reportingCorrect
- BBalanced scorecard reporting
- CStatutory financial reporting
Explanation
The triple bottom line measures performance on people, planet and profit, which are the social, environmental and economic dimensions. The balanced scorecard covers financial, customer, internal process and learning perspectives. Statutory financial reporting focuses on financial results only.
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