1. Triple Bottom Line (TBL)
Do you think that Triple Bottom Line reporting can actually lead to separate ‘bottom line’ for social, environment and economic performance of an entity? Explain your view!
Presented by:
Abrao Soares & Cirilo Mendonca
BUSN3043
Government Sustainability & Ethics

2. Aim of Presentation To define triple bottom line (TBL)
To understand the variation of the triple bottom line measurements
To define who uses TBL
BUSN3043
Government Sustainability & Ethics

3. Define TBL
TBL was first coined in 1994 by John Elkington, the founder of a British consultancy called sustainability
TBL consists of 3Ps: Profit, People and Planet
Company should prepare 3 bottom line reporting:
Traditional measure: Profit & Loss accounts
Social measure: People accounts
Environment measure: Planet accounts
BUSN3043
Government Sustainability & Ethics

4. TBL Measurements
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Government Sustainability & Ethics

5. Economic Measures BUSN3043 Government Sustainability & Ethics
Economic variables ought to be variables that deal with the bottom line and the flow of money. It could look at income or expenditures, taxes, business climate factors, employment and business factors.
Examples
Personal income
Cost of underemployment
Job growth
Employment distribution by sector
Percentage of firms in each sector
Revenue by sector contributing to gross state product
BUSN3043
Government Sustainability & Ethics

6. Social Measures BUSN3043 Government Sustainability & Ethics
Social variables refer to social dimensions of a community of region and could include measurement of education, equity and access to social resources, health and well-being, quality of life, and social capital.
Examples
Unemployment rate
Female labour force participation rate
Median household income
Relative poverty
Percentage of population with a post-secondary degree
Average commute time
Violent crimes per capita
Health-adjusted life expectancy
BUSN3043
Government Sustainability & Ethics

7. Environment Measures BUSN3043 Government Sustainability & Ethics
Environmental variable should be represent measurements of natural resources and reflect potential influences to its viability.
Examples
Sulphur dioxide concentration
Concentration of nitrogen oxides
Selected priority pollutants
Excessive nutrients
Electricity consumption
Fossil fuel consumption
Solid waste management
Hazardous waste management
Change in land used due to business expansion
BUSN3043
Government Sustainability & Ethics

8. Who uses TBL? BUSN3043 Government Sustainability & Ethics Business
The TBL and its core value of sustainability have become compelling in the business world due to accumulating unreliable evidence of greater long-term profitability.
Examples
PT. Musim Mas
McDonald
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Government Sustainability & Ethics

9. Who uses TBL? (cont.) Non-for-profit BUSN3043
Many non profit org. have adopted TBL & partnered with private firms to address broad sustainability issues that mutual stakeholders. Company recognised that align with non profit organisation make good business sense particularly those non profit with goal of economic propensity, social well being and environmental protection.
Ford foundation
Nike foundation
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Government Sustainability & Ethics

10. Who uses TBL? (cont.) BUSN3043 Government Sustainability & Ethics
Government State and regional and local government are increasingly adopting the TBL and analogous sustainability assessment framework as decision making and performance monitoring tools. - Government need Regulate the busines
BUSN3043
Government Sustainability & Ethics

11. Can TBL lead to different separate bottom line?
Can TBL (profit, people, planet account) can be achieved at same time?
BUSN3043
Government Sustainability & Ethics

12. TBL Challenges ? Economic prosperity
-downward prices and wages increase lead wasteful consumption in developed countries.
Low price leading to exploitation of labor in third world
Environmental sustainability
Environmental regulation enforcement
Non renewable resources exploration
Social equity
Technological improvement and automation reducing local employment opportunity.

13. conclusion TBL can achieved if Business disclosed its CSR
Government put strong sustainability regulation
Consumers consume resources properly (less waste)