Final answer:
The triple bottom line (social, economic, and environmental) is known as sustainability reporting, corporate social responsibility (CSR), or triple bottom line accounting. It encapsulates a business approach that considers environmental, social, and economic impacts. Concepts like environmental justice and organizations like The World Bank embrace this holistic view of progress.
Step-by-step explanation:
The triple bottom line (social, economic, and environmental) is known as sustainability reporting, corporate social responsibility (CSR), or simply triple bottom line accounting. This concept extends the traditional reporting framework to include ecological and social performance, in addition to financial performance. It is a way for companies to evaluate their performance in a broader context, fostering responsible business practices that take into account the impact on the environment and society. These three pillars, often referred to as 'people, planet, and profit,' aim to provide a holistic approach to measuring success and encourage businesses to pursue sustainable strategies.
One example illustrating the concept is the way The World Bank tracks not only the economy of nations but also their demographics and environmental health. This multidimensional tracking helps classify countries as high, middle, or low income while assessing their sustainability. Similarly, the concept of environmental justice, which is the fair treatment and meaningful involvement of all people regarding enforcement and implementation of environmental regulations and policies, ties in with the social aspect of the triple bottom line.
In terms of visualizing the tradeoff between economic output and environmental protection, a graphic representation might show a curve or a front representing the optimal balance of these elements. This model often suggests that after a certain point, increases in economic output may lead to diminishing environmental quality, hence advocating for a balance that promotes both economic well-being and ecological health. Degrowth advocates, for instance, mention the importance of a model that values social and ecological wellness over simply the accumulation and consumption that is often the focus in traditional economic models.