What are the three pillars of the Triple Bottom Line?

Prepare for the CIMA Strategic Management (E3) Exam with comprehensive flashcards and multiple-choice questions. Each question offers hints and explanations to ensure you are ready for your test!

Multiple Choice

What are the three pillars of the Triple Bottom Line?

Explanation:
The triple bottom line measures performance across three dimensions beyond financial results: people, planet, and profit. “People” covers social impact on employees, communities, and other stakeholders; “planet” covers environmental stewardship and resource use; and “profit” captures economic viability and long-term value creation. This phrasing—People, planet, profit—is the common way to express the three pillars, highlighting that sustainable success requires balancing social responsibility, environmental protection, and economic performance. While the same idea can be stated as economic, social, and environmental, or framed as ESG (environmental, social, governance), the triple bottom line traditionally centers on these three pillars, with governance not being one of them.

The triple bottom line measures performance across three dimensions beyond financial results: people, planet, and profit. “People” covers social impact on employees, communities, and other stakeholders; “planet” covers environmental stewardship and resource use; and “profit” captures economic viability and long-term value creation. This phrasing—People, planet, profit—is the common way to express the three pillars, highlighting that sustainable success requires balancing social responsibility, environmental protection, and economic performance. While the same idea can be stated as economic, social, and environmental, or framed as ESG (environmental, social, governance), the triple bottom line traditionally centers on these three pillars, with governance not being one of them.

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