Taking its name from the
Bottom Line of a financial
ledger, the Triple Bottom Line is a relatively new form of measuring
return on
investment, taking into account the
economic,
social, and
environmental costs and benefits. The goal of triple bottom line
accounting is that of
sustainability, so that the
corporation and
investors can continue in a healthy manner and meet profit for as long as the participants should wish.
For an organization or corporation to be sustainable, it is in its interest to shift its focus from quarterly or annual profits to a timespan which more accurately reflects the expected duration of the enterprise, which in the case of most businesses is indefinite.
What results is increased importance on value, and diminished importance on profit. Through Natural Capital, and Social Capital, however, companies realise better financial bottom lines.