What does the triple bottom line measure for a firm's success?

The concept of the triple bottom line is centered around measuring a firm's success through three critical dimensions: people, planet, and profit. This framework emphasizes the importance of social, environmental, and economic responsibilities.

The "people" aspect refers to the firm's impact on its employees, customers, and the broader community, highlighting the need for ethical practices, fair labor conditions, and community engagement. The "planet" component focuses on environmental stewardship, urging businesses to operate sustainably and reduce their ecological footprint. Lastly, the "profit" element ensures that while a company pursues its social and environmental goals, it also remains financially viable and capable of generating profits.

Together, these three pillars help businesses evaluate their overall effectiveness and sustainability, promoting a more holistic approach to measuring success beyond traditional financial metrics.