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Home → All Courses → Business and Economics Courses → Social Entrepreneurship: Creating Sustainable Jobs and Impactful Change → Flashcard

Explain the concept of triple bottom line and its relevance to social entrepreneurship.



The concept of triple bottom line (TBL) was first introduced by John Elkington in 1994. It refers to a framework that incorporates three key elements - social, environmental, and financial - as the measure of business success. The TBL concept goes beyond the traditional bottom line of just financial profit and considers the impact of business activities on people, the planet, and profits.

In the context of social entrepreneurship, the TBL framework is particularly relevant as it aligns with the mission and values of social entrepreneurs who aim to create positive social and environmental impact through their businesses. By incorporating the TBL framework, social entrepreneurs can ensure that they are creating sustainable businesses that not only generate financial profits but also contribute to the well-being of society and the environment.

The social bottom line focuses on the social impact of the business and its contribution to the community. This includes aspects such as creating employment opportunities for marginalized communities, improving access to education and healthcare, and addressing social inequalities.

The environmental bottom line looks at the impact of the business on the natural environment. This includes minimizing the use of natural resources, reducing waste, and promoting sustainable practices such as recycling and renewable energy.

The financial bottom line is still important in the TBL framework as it is the foundation of any successful business. However, financial profit is not the only measure of success, and social entrepreneurs need to consider the impact of their business activities on people and the planet.

Overall, the TBL framework provides social entrepreneurs with a holistic approach to business that aligns with their values and mission. By incorporating the TBL framework, social entrepreneurs can create businesses that are financially sustainable while also making a positive social and environmental impact.