Triple Bottom Line in Financial Accounting - ACCT 207 Assignment 1

This essay provides an overview of the triple bottom line (TBL) framework in financial accounting, which encompasses social, environmental, and financial/economic dimensions. It highlights how organizations are increasingly adopting the TBL to create value and demonstrate a commitment to sustainability and the common good. The essay discusses the role of accountants in upholding ethical codes and maintaining public trust. It elaborates on the benefits of implementing the TBL, such as improved public reputation, enhanced talent recruitment and retention, increased productivity, and access to new market potential. The essay examines the social and environmental aspects of the TBL, citing JB Hi-Fi as an example of a company engaging in social activities and promoting energy-efficient products. Furthermore, it addresses the economic bottom line and its focus on external economic benefits. While acknowledging the advantages of the TBL, the essay also discusses potential negative aspects, such as management conflicts arising from prioritizing long-term social and environmental benefits over short-term profits. The essay concludes by referencing various sources that support the discussion of the triple bottom line and its implications for financial accounting.

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
1. UKEssays. November 2018. The Concept Of The Triple Bottom Line. [online].
Available from: https://www.ukessays.com/essays/management/the-concept-of-the-
triple-bottom-line-management-essay.php?vref=1 [Accessed 27 March 2019].
2. UWF Online - University of West Florida Online Programs. (2017). The Importance of Ethics
in Accounting | UWF Online. [online] Available at:
https://getonline.uwf.edu/articles/business/ethics-in-accounting.aspx [Accessed 29 Mar.
2019].
3. JB HIFI Annual Report. (2017). [ebook] Australia, p.17. Available at:
https://www.jbhifi.com.au/Documents/2017%20Annual%20Report.pdf [Accessed 30 Mar.
2019].
4. Accipio.com. (2018). The Triple Bottom Line. [online] Available at:
https://www.accipio.com/eleadership/mod/wiki/view.php?id=1865 [Accessed 30 Mar. 2019].
5. JB HIFI Annual Report. (2017). [ebook] Australia, p.16. Available at:
https://www.jbhifi.com.au/Documents/2017%20Annual%20Report.pdf [Accessed 30 Mar.
2019].
6. Accipio.com. (2018). The Triple Bottom Line. [online] Available at:
https://www.accipio.com/eleadership/mod/wiki/view.php?id=1865 [Accessed 30 Mar. 2019].
7. Bizfluent.com. (2019). [online] Available at: https://bizfluent.com/info-8509816-disadvantages-
triple-bottom-line-reporting.html [Accessed 30 Mar. 2019].