7.3.4

Assessing Business Performance

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Elkington's Triple Bottom Line Theory

Elkington’s Triple Bottom Line theory also provides managers and leaders with a framework to assess business performance based upon the business’ profit, but also on its impact on people and the planet:

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Business profit

  • In Elkington’s Triple Bottom Line, the business’ profit is considered as an important element of determining the business’ overall performance; however Elkington states that such profit should also be used to support the community.
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Business impact on the people

  • In Elkington’s Triple Bottom Line, the business’ impact on the people affected by the business, such as employees and customers, is considered as an important element of determining the business’ overall performance.
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Business impact on the planet

  • In Elkington’s Triple Bottom Line, the business’ impact on the planet is considered as an important element of determining the business’ overall performance.

Jump to other topics

1What is Business?

2Managers, Leadership & Decision Making

3Decision Making to Improve Marketing Performance

4Decision Making to Improve Operational Performance

5Decision Making to Improve Financial Performance

6Improving Human Resource Performance

7Analysing the Strategic Position of a Business

8Choosing Strategic Direction

9How to Pursue Strategies

10Managing Strategic Change

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