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ACCA Strategic Professional · Advanced Performance Management · Sustainability

Marlow Textiles plc's board wants to report its environmental and social impacts alongside financial results, so that performance is judged on 'people, planet and profit'. Which approach does this describe?

This is triple bottom line reporting. It measures and reports performance across three dimensions, social (people), environmental (planet) and economic (profit), so that an organisation is judged on its wider impacts and not only on financial results.

  1. ATriple bottom line reportingCorrect
  2. BBalanced scorecard with a single financial perspective
  3. CResidual income reporting
  4. DZero-based budgeting

Explanation

The triple bottom line extends reporting to social, environmental and economic outcomes (people, planet, profit). The balanced scorecard has four perspectives, but it is not specifically a people-planet-profit framework, and residual income and zero-based budgeting are purely financial or budgeting techniques.

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