The triple bottom line (TBL) concept emphasizes that companies should balance their focus on profits with social and environmental responsibilities, measuring performance across three pillars: profit, people, and planet. While TBL can enhance brand loyalty, employee retention, and attract ESG-focused investments, it also presents challenges such as difficulties in measuring non-financial outcomes and potential increases in operational costs. Overall, the TBL approach seeks to promote a positive impact on society and the environment alongside traditional financial success.

1. TRIPLE BOTTOM LINE
PEOPLE
PLANET
PROFIT

2. TRIPPLE BOTTOM LINE
In economics, the triple bottom line (TBL) maintains that companies should commit to focusing
as much on social and environmental concerns as they do on profits.
Profit is now just one of the three Ps: people, planet, and profit.
A business concept that measures a company's performance across three dimensions:
PROFIT : Financial performance
PEOPLE : Social performance
PLANET : Environmental performance

3. PROFIT: This is the traditional measure of corporate profit.
Financial metrics such as net income, revenue, and return on investment
PEOPLE: This measures how socially responsible an organization has been throughout its history.
Social metrics such as employee satisfaction, customer satisfaction, and diversity
PLANET: This measures how environmentally responsible a firm has been.
Environmental metrics such as greenhouse gas emissions, water use, and waste generation.
THE THREE PILLARS OF THE TRIPLE BOTTOM LINE

4. Pros VS Cons
▪ Aims to have positive impact on the world
▪ May boost employee retention as workers
may appreciate favorable working
conditions
▪ May result in greater external funds from
investors seeking ESG investments
▪ May result in greater sales from customers
seeking to support ESG companies
▪ May result in long-term efficiencies that
reduce costs in the long-run
▪ May be more difficult to assess non-financial
inputs or outputs
▪ Lack of comparability across impact groups (i.e.
companies may need to choose one bottom line
over the other)
▪ May result in competing strategies, making it
difficult to easily pivot from one plan to another
▪ Will likely increase the cost of operations due to
needing to find alternative products or processes