ACCA Strategic Professional · Strategic Business Leader · Environmental issues
Lumora Foods, a packaged-snack manufacturer, is reviewing the effect of its operations on the natural environment. The board wants a framework that measures performance against economic, social and environmental results together, rather than profit alone. Which approach does this describe?
Triple bottom line reporting is correct because it assesses an organisation on economic, social and environmental performance together, often called people, planet and profit, instead of judging success on financial profit alone.
- ATriple bottom line reportingCorrect
- BPESTEL analysis of the macro-environment
- CPorter's five forces analysis
- DBalanced scorecard financial perspective only
Explanation
The triple bottom line (people, planet, profit) measures economic, social and environmental performance together. PESTEL scans the external macro-environment and does not measure organisational performance across these three dimensions. Five forces examines industry competition. A financial-only perspective ignores social and environmental results.
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