Importance of triple bottom line reporting:
Triple Bottom Line reporting:
Under Triple Bottom Line reporting, an organization reports its performance in three areas namely profit, people and planet. It basically measures economic, social, and environmental impact of corporate decisions.
Triple Bottom Line reporting assumes to be significant in the context of increasing pressure on organizations to not only make profits, but also to be socially and environmentally responsible.
It was observed that focusing only on profit motive by organizations was creating an imbalance in the society. Organizations having only a profit motive perform at the cost of society and environment such as poor health of employees, emissions of greenhouse gases, and water pollution. Therefore, the need was felt for reporting multiple indicators such as economic, social, and environmental so that appropriate action can be taken by organizations and governments around the world to take measures for the betterment of society.