Question

_{The triple bottom line includes what three main dimensions?}

Short answer

The triple bottom line measures an organization's financial, social, and environmental well-being.

Step-by-step solution

Meaning of Triple Bottom Line (TBL)

The triple bottom line (TBL) in financial matters states thatbusinesses should commit to giving social and environmental concernsthe same amount of consideration as they grant profit. The Triple Bottom Line (TBL) hypothesis proposes that there ought to be three bottom lines: profit, people, and the environment.

Three dimensions of the triple bottom line

According to the sustainable development model, a company that wants to succeed must embrace everything that falls under the financial, social, and environmental responsibility categories.

In finance, experts typically refer to a company's bottom line as its earnings. Elkington's TBL framework moves businesses toward the objective of sustainability in business practices by encouraging them to consider factors more than just financial returns when calculating their total cost of doing business. According to the triple-bottom-line approach, businesses should give social and environmental concerns the same amount of consideration as financial ones.

According to TBL theory, a business cannot accurately report for all costs of operating a business if it only focuses on economics and ignores how it interacts with its stakeholders on a social level.