ACCA Strategic Professional · Advanced Financial Management · Corporate environmental, social, governance (ESG) and ethical issues
Which of the following best describes the 'triple bottom line' approach to reporting corporate performance?
The triple bottom line reports economic, social and environmental performance, often called profit, people and planet. It extends measurement beyond financial profit so that management and stakeholders can judge the wider sustainability impact of the organisation's activities.
- AReporting profit, cash flow and dividends separately
- BReporting economic, social and environmental performanceCorrect
- CReporting performance to shareholders, lenders and regulators
- DReporting short-term, medium-term and long-term financial targets
Explanation
The triple bottom line expands performance assessment beyond profit to include people (social) and planet (environmental) alongside economic results. The other options describe financial or audience-based splits and do not capture the sustainability dimensions.
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