Question

What does the term triple bottom line refer to?

1) A financial statement that includes three sections: income, expenses, and profit
2) A business strategy that focuses on three key areas: people, planet, and profit
3) A marketing technique that targets three different customer segments
4) A manufacturing process that involves three stages: planning, production, and distribution

Answer 1

The term triple bottom line refers to a business strategy focusing on three pillars: people, planet, and profit. It encourages companies to look beyond financial success to include social and environmental responsibilities in their performance metrics. The correct answer is option B.

Step-by-step explanation:

The term triple bottom line refers to a business strategy that emphasizes three key performance areas: people, planet, and profit.

These three pillars serve as a framework for companies to evaluate their performance in a broader context, moving beyond the single metric of financial success to include social and environmental responsibilities.

Traditionally, businesses focus on the equation Profit = Total Revenue - Total Cost; however, the triple bottom line expands this focus to account for a company's impact on social equity and environmental sustainability alongside its financial results.

By integrating these three aspects, businesses aim to create a balance that contributes to a more sustainable and equitable world.