What is the Triple Bottom Line?

Triple Bottom Line (TBL), a term coined by John Elkington, is a stakeholder approach to company governance indicating that the performance of companies should be based on the combination of financial performance, environmental responsibility, and social responsibility.

What are the 3 Bottom Lines?

• People (Human Capital) pertains to fair and beneficial business practices toward labor and the community and region in which a corporation conducts its business.
• Planet (Natural Capital) refers to sustainable environmental practices. A TBL company endeavors to benefit the natural order as much as possible or at the least do no harm and curtail environmental impact.
• Profit (Financial Capital) is the bottom line shared by all commerce, conscientious or not. In the original concept, within a sustainability framework, the "profit" aspect needs to be seen as the economic benefit enjoyed by the host society. It is the lasting economic impact the organization has on its economic environment. This is often confused to be limited to the internal profit made by a company or organization. Therefore, a TBL approach cannot be interpreted as traditional corporate accounting plus social and environmental impact.