ACCA Applied Knowledge · Business and Technology · Sustainable business practices
Which of the following best describes the 'triple bottom line' approach to reporting on sustainability?
The triple bottom line means reporting on three dimensions of performance: financial (profit), social (people) and environmental (planet). It extends measurement beyond profit alone so that organisations account for their wider impact, which is why it is often summarised as profit, people and planet.
- AReporting on financial, social and environmental performanceCorrect
- BReporting on sales, costs and profit
- CReporting to shareholders, lenders and regulators
- DReporting on strategic, tactical and operational plans
Explanation
The triple bottom line, associated with Elkington, widens performance measurement beyond profit to include people (social) and planet (environmental). The other options describe unrelated groupings of financial items, audiences or planning levels.
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