what is the triple bottom line tbl 
in economics the triple bottom line tbl maintains that companies should commit to focusing as much on social and environmental concerns as they do on profits tbl theory posits that instead of one bottom line there should be three profit people and the planet a tbl seeks to gauge a corporation s level of commitment to corporate social responsibility and its impact on the environment over time in 1994 john elkington the famed british management consultant and sustainability guru coined the phrase triple bottom line as his way of measuring performance in corporate america the idea was that a company can be managed in a way that not only makes money but which also improves people s lives and the well being of the planet 1understanding the triple bottom line tbl in finance when speaking of a company s bottom line we usually mean its profits elkington s tbl framework advances the goal of sustainability in business practices in which companies look beyond profits to include social and environmental issues to measure the full cost of doing business triple bottom line theory says that companies should focus as much attention on social and environmental issues as they do on financial issues tbl theory also says that if a company focuses on finances only and does not examine how it interacts socially it is not able to see the whole picture and therefore cannot account for the full cost of doing business the 3 ps of the triple bottom lineaccording to tbl theory companies should be working simultaneously on these three bottom lines in the context of the triple bottom line profit can mean more than just how much money a company makes a company must ensure it earns its income in ethical fair manners this includes soliciting business partners and vendors with which it aligns philanthropically it also defines how a company develops its strategy or financial operating plan for instance profit also ties to a company s responsibility to pay its lenders creditors and employees what is due to them and to have a sense of financial responsibility for these obligations some users of the triple bottom line may also say profit refers to not only a company s profit but the profit of those around the company this specifically refers to the community in which the business operates this may include in the context of triple bottom line people refers to every individual that is in touch with a company this includes but is not limited to traditionally a company would prioritize investors or shareholders triple bottom line shifts the focus to individuals potentially not financially invested in the company but still tangentially involved with its operations now instead of attempting to create value by only increasing investor returns triple bottom line strives to create value by encouraging volunteerism of its employees or support or business success of small suppliers for example the largest deviation from purely financial reporting relates to reporting on environmental impacts often a company must be forced between a lower cost option or a more environmentally friendly alternative a company may also choose between a less favorable alternative for example eco friendly transit will likely be slower than aircraft instead of reporting a company s positive changes to the planet it is often much easier to assess the impacts of the alternatives elected by the company imagine a company that redesigned its distribution channels to reduce its energy use such an activity would be reported as saving a certain amount of greenhouse gas emissions some users of triple bottom line may replace profit with prosperity both terms are meant to be interchangeable and refer to the long term health of the company and its programs 