In this paper, the writer examines the TBL concept, discusses its possible contribution to business and economic development and how it can be useful to policymakers. The writer will also provide some examples of how TBL can be applied to achieve the best results for companies and individuals.
By concentrating on detailed investment results – about performance based on interrelated aspects of people, profits, and the planet – TBL reporting can be a vital instrument to support sustainability objectives. Interest in TBL accounting has been intensifying in for-profit, government and non-profit sectors. Many enterprises and non-profit firms have implemented the TBL sustainability model to analyse their results (Bachani and Vradelis, 2012:19). Interestingly, a similar approach has become popular with governments at the federal, state and local jurisdictions. TBL is an accounting model that comprises three aspects of performance: social, financial and environmental. This contradicts traditional reporting models because it comprises environmental and social constraints that can be difficult to allocate effective measurement techniques. The TBL aspects are also popularly known as the three Ps: profits, planet, and people.
Years before Elkington conceived the sustainability concept now known as TBL, environmentalists grappled with models of, and measures of, sustainability. Academic fields based on sustainability have increased significantly in the last 30 years. People involved inside and outside academic disciplines who have investigated, and practiced sustainability would concur with Andrew Savitz’s general definition of TBL (Longoni, 2014:43). According to Savitz (2013:15), TBL encapsulates the basis of sustainability by gauging how an organisation’s activities affect the world, including its stockholder and profitability values and its human, environmental and social capital. According to scholars, the problem is not defining TBL.