'Triple Bottom Line' as 'Sustainable Corporate Performance': A Proposition for the Future

Sustainability, Vol. 2, pp. 1345-1360, 2010

16 Pages Posted: 24 Oct 2009 Last revised: 5 May 2013

See all articles by Hasan Fauzi

Hasan Fauzi

Sebelas Maret University

Goran Svensson

Oslo School of Management, Norway

Azhar Abdul Rahman

Universiti Utara Malaysia

Date Written: October 22, 2009

Abstract

Based upon a review of corporate performance, corporate financial performance and corporate social performance, we propose that the concept of ―triple bottom line‖ (TBL) as ―sustainable corporate performance‖ (SCP) should consist of three measurement elements, namely: (i) financial, (ii) social and (iii) environmental. TBL as SCP is proposed to be derived from the interface between them. We also propose that the content of each of these measurement elements may vary across contexts and over time. Furthermore, TBL as SCR should be interpreted to be a relative concept that is dynamic and iterative. Continuous monitoring needs to be performed, adapting the content of the measurement elements to changes that evolve across contexts and over time in the marketplace and society. TBL as SCP may be seen as a function of time and context..

Keywords: Triple Bottom Line, Social Performance, Environmental Performance, Financial Performance, Sustainable Performance

JEL Classification: M19, M40, M49

Suggested Citation

Fauzi, Hasan and Svensson, Goran and Abdul Rahman, Azhar, 'Triple Bottom Line' as 'Sustainable Corporate Performance': A Proposition for the Future (October 22, 2009). Sustainability, Vol. 2, pp. 1345-1360, 2010. Available at SSRN: https://ssrn.com/abstract=1492934

Hasan Fauzi (Contact Author)

Sebelas Maret University ( email )

Jl. Ir. Sutami 36A
Kentingan
Surakarta, Jawa Tengah 57126
Indonesia

Goran Svensson

Oslo School of Management, Norway ( email )

Norway

HOME PAGE: http://www.nordinavia.se

Azhar Abdul Rahman

Universiti Utara Malaysia ( email )

Sintok, Kedah 06010
Malaysia

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