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Triple Bottom Line Issues

   

Added on  2019-10-18

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Triple Bottom Line IssuesTriple bottom line is the framework of accounting which contains three aspects i.e. environmental, social and financial. The first bottom line is related to the company’s profit and loss statement. The second bottom line is related to the account of people of an organization. Thethird bottom line is related to the account of planet i.e. how much the organization is environmentally responsible. The motive of triple bottom line is to measure the performance financially, socially and environmentally ("The Economist - World News, Politics, Economics, Business & Finance," 2016). The major issue with the triple bottom line is that the three distinct accounts i.e. people, profit, and the planet cannot be added easily together. It is nearly impossible to measure the accounts of the people and planet in terms of cash i.e. profit. For example, the cost of spillage of a tanker of oil cannot be measured in terms of monetary aspects. The triple bottom line is very rigid to use, and it is very important to make it flexible by using the conceptual framework of responsiveness.The visual representation of the triple bottom line is sometimes misguided and gives the huge value of conceptual. The issue in triple bottom line doesn't give a clear idea about who is responsible for which aspect. The triple bottom line only includes three aspects i.e. people, profit, and planet but it doesn't include the important aspect i.e. time. As it is the very important aspect for the organizations (Alhaddi, 2015). The triple bottom line doesn’t include the aspect of time, so it becomes difficult for the organizations to develop short term, medium term, and long-term goals.
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