ACCA Strategic Professional · Strategic Business Leader · Reporting to stakeholders
Orlin Chemicals wants to show investors and communities the full effect of its activities. It decides to report on three dimensions: economic results, social impact and environmental impact, under the headings 'profit, people and planet'. Which approach is the company adopting?
The company is using triple bottom line reporting, which presents economic, social and environmental performance together as profit, people and planet. The balanced scorecard uses different perspectives and the other options serve different purposes.
- ATriple bottom line reportingCorrect
- BBalanced scorecard reporting
- CStatutory segment reporting
- DValue-for-money auditing
Explanation
Triple bottom line reporting measures economic, social and environmental performance, often summarised as people, planet and profit. The balanced scorecard has four different perspectives, and segment reporting and value-for-money audit have different purposes.
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