Question

What is a measure that accounts for an organization's results in terms of its effects on profits, planet, and people?

A) Financial ratio analysis.
B) Triple Bottom Line.
C) Net present value.
D) Return on investment.

Answer 1

The Triple Bottom Line is the measure that includes an organization's impact on profits, planet, and people, offering a broader view of the business's sustainability and social responsibility.

Step-by-step explanation:

The measure that accounts for an organization's results in terms of its effects on profits, planet, and people is known as the Triple Bottom Line (TBL or 3BL). This concept goes beyond traditional financial reporting frames to include two additional performance areas: environmental (planet), and social (people) responsibilities. Organizations use the Triple Bottom Line as a framework to evaluate their performance in a broader context to create greater business value. By considering the full cost of doing business, including the environmental, social, and financial impacts, businesses can make more informed decisions that foster long-term sustainability and ethical integrity.