Which of the below is not a measurement of successful economic bottom-line management as per the TBL concept? a. Continued profit & revenue growth b. Prioritizing on fair trade practices in business operations c. Declining market capitalization d. Legal compliance
Question
Which of the below is not a measurement of successful economic bottom-line management as per the TBL concept?
a. Continued profit & revenue growth
b. Prioritizing on fair trade practices in business operations
c. Declining market capitalization
d. Legal compliance
Solution
The answer is c. Declining market capitalization.
The Triple Bottom Line (TBL) concept measures success in business through three dimensions: social, environmental, and financial.
a. Continued profit & revenue growth - This is a measure of financial success, which is one of the three dimensions of the TBL concept.
b. Prioritizing on fair trade practices in business operations - This can be seen as a measure of social success, as fair trade practices often aim to achieve better trading conditions and promote sustainability.
c. Declining market capitalization - This is not a measure of successful economic bottom-line management. In fact, declining market capitalization could indicate financial trouble for a company, which is not a sign of success in the TBL concept.
d. Legal compliance - This can be seen as a measure of both social and financial success. From a social perspective, legal compliance ensures that the company is respecting the laws and regulations of the places where it operates. From a financial perspective, legal compliance can help avoid costly fines and legal fees.
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