ELKINGTON’S TRIPLE BOTTOM LINE

Question 1

What is ELKINGTON’S TRIPLE BOTTOM LINE
used for

Answer 1

Used to measure a businesses success

Question 2

What is Elkington’s triple bottom line

Answer 2

Elkington’s triple bottom line is a system that assesses a business’s performance, in terms of:

Profit
People - Impact on people/ stakeholders
Planet

Question 3

What is profit

Answer 3

Profit = Total revenue - Total costs - Profit is the foundation of any business, as a business may say they want loads of amazing things, but without profit, the businesses won’t be able to fund any of those things. - Profit is like the red blood cells of a business, without red blood cells it will die, just like with a human.

Question 4

What would you want to consider in regard to people

Answer 4

People: You’d want to look at the impact on employees, customers, the local community

Question 5

what is “planet”

Answer 5

The use of raw materials, energy usage, engagement with recycling, emissions etc

Question 6

WHat is sustainable development

Answer 6

(sustainable development = meeting the needs of people today without compromising the ability of future generations to meet their needs)

Question 7

LOOK AT THE CHART

Answer 7

https://docs.google.com/document/d/1xb9J4CbxkF1pJAnpUVOYWViIS-XMAqvd7yT8uYpGoSg/edit

Question 8

What are the advantages of Elkington’s triple bottom line

Answer 8

Encourages a move away from a short term shareholder perspective to a longer term stakeholder approach

Recognises the importance of profit, but encourages companies to balance against the need for sustainable development

Companies using this may improve their reputation and brand image

Encourages goals to be set againsg each area of performance

Question 9

What are the disadvantages of