The triple bottom line reporting has become a popular method of tracking business performance. However, some companies use this reporting framework and find that it is not necessarily all that useful to them.
While some businesses are convinced by the triple bottom line report and continue to use it, others believe the reports are too complex for them to comprehend. Regardless, there is one notion that all of these businesses lack: the tri-level reporting model.
Components of Triple Bottomline Reporting
This accounting approach, which has three components (social, economic, and financial), is actually referred to as the triple bottom line model. Some businesses have embraced the TBL model in order to track their development on a more granular level in order to make better business decisions. The term “Triple Bottom Line” was coined by John Elkington, author of the Triple Bottom Line report, who claims to have come up with it in 1994.
According to the Triple Bottom Line Model, economic, social, and environmental aspects of a corporation can all be made to make commercial sense together. Additionally, many businesses utilise it to keep track of their progress towards attaining their objectives. With the triple bottom line model, you can assess how well your staff are performing, track progress towards business objectives, and ensure that everything is in place before making any structural changes to your organisation.
If you want to see how the triple bottom line model works, here is one way that you can do it. The tri-level measurement and reporting include three levels of reporting. The first is done through a single line of text, and the second level is done using the two different lines and using the third line to show an overall measurement of the performance of the organization.
By using the three lines, you will be able to see what is being measured, the kind of information that is needed to make the measurements and then what the top line measurement is. There are also some limitations to the data that you will get out of the top line measurement. This limitation is related to the fact that the results may not be perfect. because it depends on the information that you will provide in the first line of text.
You will get a report based on the top line of text and it will include the information that is needed to calculate the average, minimum and maximum line performance. You will also get reports based on the top line of text and then the bottom line of text.