ACCA Applied Knowledge · Business and Technology · Sustainable business practices
Which of the following best describes the 'triple bottom line' approach to measuring business performance?
The triple bottom line measures and reports an organisation's financial, social and environmental performance, often called profit, people and planet, rather than judging success on financial profit alone.
- AReporting profit, liquidity and gearing
- BReporting financial, social and environmental performanceCorrect
- CReporting performance to shareholders, lenders and employees
- DReporting sales, costs and profit by division
Explanation
The triple bottom line, often summarised as people, planet and profit, widens performance measurement beyond financial profit to include social and environmental results. The first option lists financial measures only. The third lists stakeholder groups, not performance dimensions. The fourth is divisional reporting.
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