• Question

      Which is correct about Triple bottom line of the company?

      A Income, Investment and Incentives Correct Answer Incorrect Answer
      B Earning, Investment and Assets Correct Answer Incorrect Answer
      C Profit, People and Planet Correct Answer Incorrect Answer
      D Profitability, Liquidity and Solvency Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      The phrase “the triple bottom line” was first coined in 1994 by John Elkington, the founder of a British consultancy called SustainAbility. His argument was that companies should be preparing three different (and quite separate) bottom lines. One is the traditional measure of corporate profit—the “bottom line” of the profit and loss account. The second is the bottom line of a company's “people account”—a measure in some shape or form of how socially responsible an organisation has been throughout its operations. The third is the bottom line of the company's “planet” account—a measure of how environmentally responsible it has been. The triple bottom line (TBL) thus consists of three Ps: profit, people and planet.  The law does not distinguish between the business and its owners.  

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