Background Study

The triple bottom line framework consists of three components – profit, people and planet –. It is an
attempt to hold companies accountable for their overall impact on our planet, including societal and
environmental impacts, by moving away from traditional frameworks that focus singularly on making
profits (Edara, 2017). It is already given that profit is being measured through monetary values and is
assessed through the financial statements, particularly the Statement of Financial Performance.
However, people and planet cannot be measured by any financial reports. To address the “people”,
focusing on all the stakeholders of a business is crucial. To adhere with the mentioned component, a
business may consider adapting the corporate social responsibility initiatives to address human rights,
equity and inclusion, gender equity and healthy work environment (University of Wisconsin, n.d). On the
other hand, addressing “planet” consists of considering different business operations and their effects to
the environment. Additionally, this component also extends in addressing global issues such as climate
change and global warming. Such components are used to measure the effectiveness and efficiency of
the operations and the success of the business. However, there are instances that a business is only
leaning towards its profitability neglecting the other two components of the triple bottom line
framework. It is common knowledge that high profits are the main focus of a business entity.
Nevertheless, a business may fail to address the other important goals and values if they intensely
focused on one goal.

Sources: A Simple Explanation of the Triple Bottom Line | University of Wisconsin

Triple Bottom Line: recognizing challenges and moving forward - Center for Community and Economic
Development - Michigan State University (msu.edu)

Eureka_SH_2019_5_Brin_Corporate.pdf (kpi.kharkov.ua)
Perspectives-of-MSMES-and-Business-Owners-on-Sustainability-Challenges-and-its-Effect-on-
Sustainability-Outcomes-Perspectives-of-MSMEs-and-Business-Owners-on-Sustainability-Challenges-
and-its-Effect-o.pdf (researchgate.net)

RR Literature
Sources:

Possible sources: BMS-V1N2-2015web-libre.pdf (d1wqtxts1xzle7.cloudfront.net)