Triple Bottom Line: Accounting Framework for Sustainable Business

This article discusses the concept of the triple bottom line (TBL), an accounting framework that focuses on the social, environmental, and financial aspects of business. It explores how organizations can create value by following the TBL framework and highlights the benefits of maintaining a positive reputation, improving community relations, and promoting environmental sustainability. The article also mentions the importance of ethical codes in the accounting profession and provides examples of companies, such as JB HiFi, that have implemented social and environmental initiatives. Additionally, it discusses the economic bottom line and its impact on local economies. However, it also mentions potential conflicts between short-term profits and long-term social and environmental benefits. Overall, the article provides insights into the TBL framework and its implications for businesses.

ACCT 207
FINANCIAL ACCOUNTING
ASSIGNMENT 1
Triple bottom line is an accounting framework, which has three parts: social, environmental
and financial/economic. Some organizations and industries are followed this line up to create
a great value for their business. Triple bottom line is a consistent process which will enable
the enterprise to focus on performing into a sustainable business while demonstrate to the
neighbourhood community and the workers of the business that not only looking forward on
benefit, it also a great common good. It is a sustainable business of action which balance
financial achievement, social support and environmental sustainability (Crow R, 2010).]
Accountants manage the personal financial details of people and organization. Some can
execute million-dollar exchanges, and others assist with defending retirement assets of taxi
drivers and social workers. Ethical codes are the fundamental rules that accountants’
experts keep improving their professions, maintain public trust, and exhibit trustworthiness
and decency. Individuals who join associations and secure the accreditations to presents
themselves to the public as CPAs to ensure the reputation of the profession (UWF Online -
University of West Florida Online Programs, 2017).
We know that TBL has three parts for an accounting framework. If any industries,
organization wants to follow this framework. They must have to maintain this part social,
environment and financial. They will get benefits from there also. Like they can improve their
reputation in the public eye. It would be positive side effects for customer also. For this it will
help them to recruitment and retention of talent, cause most of individuals choose to work for
any company and organisation with positive CSR reputation. It will increase their Productivity
and New Market Potential also.
For social bottom line, organisations and company should not be concerned with just how
they will treat their workforce. But also, they must think that how it will impact on their wider
community. They contribute to the local community projects, improving health, donate in the
charity and education services. They must ensure about discrimination does not take place.
Everyone getting same minimum wages levels, maintaining the health and safety issues and
working hours also (Accipio.com, 2018).

For example, Brand like JB HiFi doing some social activities and helping their community.
They organize some workplace giving programme – “helping hand – Australia and New
Zealand”, change for change – donation boxes in JB Hi Fi stores. The helping hands program
in Australia includes more than 5000 JB HIFI Australia workers (roughly 79%of absolute JB HIFI
Australia representatives) each creation week after week contributions. This year over $2100000 has
been raised and, since its origin, the JB HIFI business and its worker are glad to have raised more
than $11,200,000. The present charity accomplices to which commitments are made are bush
heritage Australia, reachout.com, the song room, redkite, fred hollows foundation, Oxfam and the
Australian Animal welfare league (JB HIFI Annual Report, 2017).
For environmental impacts, at present global warming is the main point or popular topic of
discussion. It has come to the public eye. Water management, land, natural resources, plant have
come under the scrutiny in recent years. For that reason, every organisation and company now
always searching these elements carefully to ensure that, they have a positive impact on
environment.
If we see JB HIFI environmental statement, they have done so many things for environment. They
promote about energy efficient products as a participates in the smarter choice programme in join
with the Victorian and New South Wales states governments. This programme teaches to the JB HIFI
employees how to give advice customers about the energy efficiency of products. They promote
peaksmart air – conditioners, which is help reduce the peak electricity demand. They have their own
bins for recycling paper and cardboard (JB HIFI Annual Report, 2017).
For economic bottom line, it has some different corporate financial accounting and measurement
of profits. For society, it considers the external economic benefit. As example, employing local
people and using local providers will improve the way of life in the region and make a multiplier
impact all through the local economy (Accipio.com, 2018).
On the other hand, the triple bottom line has some negative aspects also. like management
conflict, A business' administration generally aims to expand returns to investors. Triple bottom
line reporting may make a conflict for such a business. The advantages of any social and natural
activities that a business participates in are likely to emerge over the long term. However, they
could have a short-term negative effect on profits. Most shareholders are more equipped to the
short-term profits than to long term results (Bizfluent.com, 2019).

References
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