Framework
Triple bottom line
The question it answers
When shareholders, customers and communities expect more than profit, how should a leadership team measure and report its results for people and the planet as well?
- Origin
- Elkington, 1997
- Diagram type
- Comparison table
- Level of analysis
- Firm
Diagram
Triple bottom line
| Criterion | Profit | People | Planet |
|---|---|---|---|
| Core question | Is the firm financially viable and resilient? | What value is created, and what harm avoided, for staff, customers and communities? | Does the environmental burden grow or shrink? |
| Typical actions | Manage cost and risk | Fair hiring, partnerships with non-profits | Cut energy use, source ethically, streamline shipping |
Pitfalls
Pitfall
The three Ps work as a communication device; the framework does not by itself show that sustainability raises returns, so do not claim that without peer-reviewed support.
Sources
References
Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.
- Elkington, J. (1997) Cannibals with forks: the triple bottom line of 21st century business. Oxford: Capstone.No DOISource page
- Elkington, J. (2018) 25 years ago I coined the phrase ‘triple bottom line’. Here's why it's time to rethink it. Harvard Business Review.No DOIhbr.orgSource page
- Miller, K. (2020) The triple bottom line: what it is & why it's important. Harvard Business School Online, Business Insights blog, 8 December 2020 (updated 16 August 2023).No DOIonline.hbs.eduSource page