How Can the Triple Bottom Line Framework Be Used to Assess

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The Answer is The triple bottom line (TBL) approach can help businesses be more sustainable by assessing profitability (and other economic factors), social equity and environmental performance. Since the three factors interact, one can have a positive or negative affect on the other; thus, affecting business operations and profitability.
Economic Factors
While the growth of businesses is necessary for the growth of the economy, the economic
category begins with an organization's need for income to survive. Traditional reporting
typically focused on a company's financial statements: calculating income, expenses, assets,
and liabilities. TBL reporting, however, has a broader approach. It goes beyond the
financial statements and can include other indicators to show how a business is performing.
Changes to the number of employees, for example, can indicate either job growth or
company downsizing. The size of a business, revenue by sector, and research and development
costs can also provide other information affecting the company's bottom line and
cash flow. The amount of taxes paid is another economic indicator companies can use to
show a company's growth or decline.
Social Factors
Social equity (or the social category) refers to fair and equitable business practices toward
employees and the community. What is a fair and equitable business practice? Some examples
include fair salaries, a safe workplace, reasonable working hours, and adherence to all employment laws. Respect for diversity and human rights is also an important part of social equity. For companies that outsource some of their business functions to overseas suppliers, a fair business practice would mean not using child labour, even in countries where it may legally
be acceptable. Although lower wages are paid, businesses with equitable practices would
ensure that workers and their communities are not exploited, harmed, or negatively affected
by their business operations. Subsequently, business ethics plays a role in social equity.
Besides employee welfare, the social category includes a company's commitment to
helping the communities it operates in. Charitable donations and volunteer time are two
traditional ways an organization can help society. However, many organizations are
becoming more involved in meeting specific needs of communities and preserving the
long-term sustainability of their businesses. For instance, a company may support education,
health care, housing, or other needs that are vital to a community
Environment Factors
Businesses much understand how their activities affect the environment and how changes to the environment can affect their business. Certainly, changes to weather, natural disasters and other environment-related occurrences can stop production, raise costs and impact businesses negatively damaging profitability.
The environment (or the planet) is the category that refers to the need for sustainable
practices that protect our water, land, and air. The environment is what needs to be preserved
for future generations to enjoy and for the economy to prosper. What currently threatens the planet? Two key concerns are the depletion of natural resources by overconsumption and the ongoing release of greenhouse gas emissions. Depletion of Natural Resources The depletion of natural resources by humans is one of the greatest environmental problems that exists today. Human demand for resources is increasing as the earth's population continues to grow. However, the demand for resources is growing 1.5 times faster than the earth has the ability to regenerate them. While the global population exceeds 7 billion people, the United Nations expects the global population to exceed 10 billion by 2050, furthering the need for water, land, and other raw materials.

How Can the Triple Bottom Line Framework Be Used to Assess

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How Can the Triple Bottom Line Framework Be Used to Assess

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