triple bottom line

By Abrar Chaudhury.

In a recent panel discussion at the World Economic Forum 2014 - “Doing Business the Right Way” an audience member asked Richard Goyder, CEO of Wesfarmer and Australia’s G20 business leader about when businesses could be expected to formally adopt the triple bottom line (TBL) i.e. incorporate the social and environmental bottom lines along with the economic bottom line. His response was that “the only thing in the financial statements that (one) can believe in is the cashflow statement” as profits are somewhat arbitrary.  Without “generating cash you go broke”, he emphasized, so businesses need to survive first before social and environmental responsibility can be demonstrated.

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