ACCA Applied Knowledge · Business and Technology · Sustainable business practices
A manufacturer publishes an annual report that measures and discloses its performance in three areas: financial results, effects on society and effects on the natural environment. Which approach to reporting does this describe?
This is triple bottom line reporting. It assesses and discloses an organisation's performance across three dimensions: economic (profit), social (people) and environmental (planet), instead of financial results alone, which gives stakeholders a broader view of the organisation's impact and accountability.
- ATriple bottom line reportingCorrect
- BStatutory audit reporting
- CManagement by objectives reporting
Explanation
The triple bottom line looks at people, planet and profit, so it covers social, environmental and financial performance. A statutory audit is an independent check of the financial statements and does not widen the scope of reporting. Management by objectives is a goal-setting technique, not a reporting framework.
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