Assessing Business Performance
Business: AQA A Level (2023 Specification), topic 7.3.3
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:
Elkington's Triple Bottom Line
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.
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.
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.
Test yourself on Assessing Business Performance
What are the three elements to Elkington's Triple Bottom Line?