An Explanation of the Triple Bottom Line

Introduction

Historically, businesses focused solely on their financial bottom line.
In 1994, John Elkington introduced the concept of the Triple Bottom Line (TBL).
TBL aims to transform the business system to a comprehensive approach that measures impact and success beyond financials.
Businesses recognized the connection among environmental health, social well-being, and financial success.

Transformation Framework: Helps businesses move towards a sustainable future.
Tools for Measurement: Offers tools to measure and set goals for sustainable models.
Beyond Profit: Indicates that focusing solely on profit overlooks the full cost of business, risking long-term success.

People: Includes all stakeholders (employees, communities, supply chain, customers, etc.).
- Importance of Corporate Social Responsibility (CSR).
- Initiatives include human rights, poverty, diversity, equity, and community engagement.
- CSR is beneficial for both stakeholders and business.
Planet: Relationship between business and the environment.
- Public opinion and consumer power hold businesses accountable.
- Importance of global issues like climate change and social justice.
- Businesses practice minimizing environmental impact and creating regenerative impacts.
Prosperity: Economic indicators influenced by the organization.
- Importance of paying livable wages, ethical sourcing, workplace safety.
- Aligned with UN Sustainable Development Goals (SDGs) for harmonious economic, social, and technological progress.

Sustainability professionals have a significant role in organizations.
TBL theory provides opportunities for strategic engagement towards sustainability.
University of Wisconsin offers programs to become a sustainability changemaker.