The Challenge of TBL: A Responsibility to Whom?

he triple bottom line (TBL) theory claims to be a reporting mechanism designed to encourage businesses to give closer attention to the whole impact of their commercial activities, rather than just their financial performance. It is probably the best known among a number of nonfinancial reporting formats to have been given serious attention over recent years. It is defined by the McGraw-Hill book publishing organization as “a calculation of corporate economic, environmental, and social performance. ” The TBL implies that business should give parity of treatment to these three dimensions of business impact, without giving unique weight to their financial results. It focuses on more than just the economic value of business activities, by adding two more balance sheets covering the social impacts and environmental impacts of the busi-ness. This framework is intended to capture the whole set of values, issues, and processes that companies should address in order to minimize any harm that results from their activities and to ensure creation of positive economic, social, and environmental value (Elkington, 1997). TBL reporting aims to extend decision making and disclosure so that business decisions explicitly take into consider-ation the impacts on society and the environment, as well as on profit. Enthusiasts would claim that TBL reporting requires the com-pany to take into consideration the needs of all