TRIPLE BOTTOM LINE IN RELATION TO SUSTAINABILITY OF A BUSINESSES AND ACCOUNTING REPORTS

In the late 1990s, when John Elkington coined the phrase triple bottom line (TBL) as a method for measuring sustainability. The most frequently seen factors used in performance measurement were: economic, environmental, and social (Wang & Lin, 2007). In literature, there is no real consensus as to the exact number of dimensions used for the performance measures. Some other dimensions used include community improvement, environment, entrepreneurship and education (Sher & Sher, 1994) and stakeholder engagement, organizational integrity, and stakeholder activism (Painter-Morland, 2006). Though the TBL has been around for decades, events such as the 2008 financial crisis, the BP oil spill, and climate change cast an almost constant spotlight on corporate ethics and corporate social responsibility (CSR). In all instances, performance is being measured based on the impact of companies on society as a whole, both now and in the future.

Since TBL involves additional reporting, businesses will need to incorporate additional information in the reports provided to better communicate with stakeholders. The particular information reported should be re-evaluated periodically to ensure the expectations outlined in the reports are being met. When a constraint is reported and is causing less than satisfactory results, it is important for the company to discover the processes or procedures that are giving unsustainable results and correct them. This way they continue to operate towards meeting their sustainable goals.

Sustainability reporting is the process by which companies describe how they deal with their own economic, environmental, and social impacts, thus making stakeholders able to recognize the value of sustainable practices using TBL. By adopting TBL reporting, businesses understand that they are held to specific principles that are developed by internal and external forces.

REQUIRED: (wordcount at least 3,500 words)

Explain how the Triple Bottom Line Framework (TBL) enables the organization, to attain:

1. Social Sustainability, Economic Sustainability, Environmental Sustainability and the challenges faces in implementing TBL on any chosen industry sectors or companies.
2. Justify how TBL can provide additional strategic and operational leverage for businesses as they seek to succeed and grow in todays competitive environment.
3. Describe the stakeholders in this industry and the importance of their roles in ensuring effective sustainability accounting and reporting with the implementation of TBL on the chosen sector.

You are encouraged to use some aspects of technological advancements and disruptive technologies within the scopes of Industrial 4.0 (example; Big Data) to support your answers.