Final answer:
The triple-bottom line is a framework that evaluates a company's performance based on economic, social, and environmental parameters. It aims to extend the focus from mere financial gains to also include social contributions and environmental responsibility.
Step-by-step explanation:
The concept of the triple-bottom line is an accounting framework that incorporates three dimensions of performance: social, environmental, and financial. This framework is meant to encourage companies to focus not only on the traditional financial bottom line but also on the social and environmental impact of their activities. Hence, the triple-bottom line measures economic, social, and environmental parameters. It can be seen as an attempt to value the social and environmental parts just as highly as the economic variables.
By integrating the triple-bottom line into their measurement systems, businesses and governments can account for the full cost of their operations, including impacts on human capital and the environment. This approach aligns with the understanding that, while economic performance such as GDP, productivity, and economic growth is critical, it is also essential to consider the social rate of return and social benefits that extend beyond pure financial gains.