What is triple bottom line reporting?
Triple bottom line reporting refers to a system by which a company must report to its investors not only its economic returns and profitability, but also its performance in the areas of environmental impact and practices and socially responsible behavior.OriginJohn Elkington originally coined the term “triple bottom line” in his book “Cannibals with Forks: The Triple Bottom Line of 21st Century Business,” published in 1997. The term referred to reporting of a company’s economic, environmental and social practices and performance.EconomicThe first bottom line refers to the “traditional” bottom line reported to investors: that of the company’s profits, losses, market share and general financial health.EnvironmentalThe second bottom line refers to the company’s environmental performance. Environmental performance includes not only the environmental and ecological impacts of the company’s practices, production methods and products, but also efforts, if any, undertaken by the company to mit
