IntroductionTraditionally, financial reporting only discloses financial information to determine financial performance. However, nowadays, the success of a company no longer depends solely on monetary gain, but the impact of company activities on society and the environment as a whole is very important. This trend has increased public expectations that organizations take responsibility for their non-financial impacts, such as environmental and community impacts. Therefore, the Triple Bottom Line (TBL), first described in 1994 by John Elkington, can be an ideal integrated approach that fits this approach to support the sustainable growth of companies. The Triple Bottom Line incorporates three dimensions of performance and measurement, namely social (people), environmental (planet) and financial (profit), linked to sustainable development reporting theory. This is an expansion of the traditional performance framework as it takes into account not only financial results but also the social and environmental performance that businesses are dealing with. The explanations of the three pillars are as follows. Social (people) The first element in TBL is the stakeholder who deals with people inside and outside the company. Stakeholders include the community, customers, suppliers, employees, management team and anyone who may relate to the company. Companies adopting the triple bottom line report concern about the impact their actions have on the people involved, for example, contribution to the community, absence of child labor, safe working conditions and good working hours. However, measuring social profits can be quite difficult as it is difficult to compare individuals or… middle of the paper… above the competition. It is also a win-win situation for both employers and stakeholders as both parties are able to reap some benefits from it. For a company to derive maximum value from public reporting, alignment with stakeholder needs and maintaining the qualitative characteristics of the information reported is essential. More and more companies are performing TBL reporting as it can offer them a rapid level of evolution and compliance in the business environment. While TBL reporting is not currently a government mandate requirement, it is much more difficult for any organization to ignore TBL impacts on the environment, economy and society. Therefore, organizations should make an effort to target their TBL performance, to achieve both reputational, economic, environmental and social benefits in the long term.. .
tags