BTL 861 - Triple Bottom Line (TBL)

 

The Banking Tutor’s Lessons

BTL 861                                                                                18-01-2026

Triple Bottom Line (TBL)

The Triple Bottom Line (TBL) is a sustainability framework that encourages organizations to measure their success through three lenses: People, Planet, and Profit. Coined by John Elkington in 1994, it challenges the traditional business model of focusing solely on financial gain by including social and environmental impact as critical indicators of overall performance.

The Three Ps of TBL

Profit (Economic): Beyond standard net income, this pillar looks at a company's broader economic impact, such as responsible tax paying, job creation, and fostering local economic wealth.

People (Social): This measures an organization's social responsibility to all its stakeholders—including employees, customers, and communities. It focuses on fair wages, safe working conditions, and diversity and inclusion.

Planet (Environmental): This tracks a business's ecological footprint, aiming to minimize harm and maximize benefit to the natural environment. Key initiatives include reducing greenhouse gas emissions, managing waste, and switching to renewable energy.

Why Organizations Use TBL

Risk Management: Companies that proactively manage social and environmental issues are often better prepared for future regulations and crises.

Brand Reputation: A significant portion of consumers—nearly 44% in some markets—prioritize brands that align with their personal values.

Employee Retention: Modern professionals, particularly Millennials and Gen Z, prefer working for purpose-driven organizations, which can lead to lower turnover and higher productivity.

Challenges and Criticisms

Despite its popularity, TBL faces criticism for the difficulty of quantifying "People" and "Planet" with the same precision as "Profit". In 2018, John Elkington issued a "product recall" of the concept, expressing concern that it had become a mere accounting tool rather than the catalyst for radical systemic change he originally intended.

Sekhar Pariti

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