Accounting Framework: The Triple Bottom Line (TBL)

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Businesses and companies have been pervasively established all around the world leading to higher competition which is increasing across the globe nowadays. In the 20th century, a great number of firms had focused only on how to be greater than others. Actually, they had used many strategies to ensure that their companies would gain as much as profit as possible. Many companies mainly focused on how much money they make, but they forgot to concern on other parts, such as society and pollution they release. It may sound sensible that the nature and goals of business is to create profits, but besides profits, businesses should also care about other important issues. In order to be successful, gaining as much as profits is undeniable, but should…show more content…
This accounting framework is called “the Triple Bottom Line (TBL)”. To further clarify, TBL is a measurement that analyses sustainability of the companies by concentrating on profit, people, and planet. Measuring a business financial could look at their expenditure, taxes, and income. In terms of planet, natural resources, energy consumption, and toxic waste are the basic issues to measure. Diversity in labor force, social welfare, and how the companies treat employees and societies are used to measure in the aspect of people part (Slaper and Hall, n.d.). Even though Rolls Royce Holdings seems to be enormous and prosperous in various perspectives, it itself needs to certify this accomplishment in long terms by dedicatedly concerning on other factors rather than profit such as environment and society to achieve the company’s…show more content…
Environmental aspect might be the strongest line out of three sections, since this company carefully concerns about impacts on environment they make. They have attempted to improve their products, and it shows that the Eco plans to produce environmentally friendly production can work effectively. Therefore, in the future, the catastrophic impacts on environment that are caused by the company will be gradually reduced. In society part, despite the losing jobs, Rolls-royce has fairly provided the equality to their workforce. They also give the great opportunities to the women to work in their company. Obviously, it shows that rolls-royce company is the notable company that cares and concerns about diversity and gender equality. As the result, this company has shown the potential that concurrently moves forward which is good to be a stronger company in the

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