triple bottom line

A decision-making framework that captures the total impacts of doing business by evaluating results across three pillars: economic (profit), social (people), and environmental (planet).

Key Points

  • Assesses performance across profit (economic), people (social), and planet (environmental).
  • Reveals full costs and benefits beyond financial returns alone.
  • Guides sustainable choices and transparent trade-offs for stakeholders.
  • Enables KPIs and reporting aligned to the three pillars in projects and portfolios.

Example

A project team selecting a vendor evaluates not only price and delivery time (profit) but also worker safety practices (people) and the supplier's carbon footprint (planet). The project dashboard reports margin achieved, safety incident rate, and tons of CO2 avoided.

PMP Example Question

While planning a program, the PMO asks teams to justify choices using profitability, employee well-being, and environmental footprint. What concept best fits this request?

  1. Cost-benefit analysis
  2. Triple bottom line
  3. Earned value management
  4. Benefit-cost ratio

Correct Answer: B — Triple bottom line

Explanation: Triple bottom line evaluates decisions across profit (economic), people (social), and planet (environmental), not just financials.

Leadership for Project Managers Course

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Lead with clarity, influence, and outcomes.

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