Triple Bottom Line (People, Planet, Profit)
The triple bottom line (TBL) is a framework that evaluates organizational performance across three dimensions: social impact (People), environmental impact (Planet), and financial performance (Profit).
Explanation
The triple bottom line challenges the traditional view that organizational success is measured solely by financial profit. Under TBL, a truly successful organization—and by extension, a truly successful project—creates positive outcomes across all three dimensions: social equity, environmental stewardship, and economic viability.
For project managers, TBL means considering the broader impact of project decisions. Does the project create fair employment? Does it minimize environmental harm? Does it generate sustainable financial returns? These questions move beyond traditional scope-schedule-cost metrics to encompass the project's full impact on society and the environment.
PMI has increasingly incorporated sustainability into its standards. PMBOK 7th Edition lists stewardship as a core principle, and the PMI Code of Ethics addresses social responsibility. On the exam, expect questions about how project managers should balance financial objectives with social and environmental considerations.
Key Points
- •Three dimensions: People (social), Planet (environmental), Profit (financial)
- •Challenges purely financial measures of success
- •Aligns with PMI's stewardship principle
- •Increasingly relevant to project selection and evaluation
Exam Tip
Remember the three Ps: People, Planet, Profit. PMI expects project managers to consider all three dimensions, not just financial returns.
Frequently Asked Questions
Related Topics
Sustainability in Projects
Sustainability in projects is the practice of making project decisions that balance economic, environmental, and social considerations to meet present needs without compromising the ability of future generations to meet theirs.
Stakeholder Value
Stakeholder value is the worth, benefit, or utility that project outcomes provide to each stakeholder or stakeholder group, recognizing that different stakeholders may define value differently.
Business Value
Business value is the net quantifiable benefit derived from a business endeavor, encompassing tangible elements like revenue and market share, as well as intangible elements like brand recognition, public benefit, and strategic alignment.
Organizational Strategy
Organizational strategy is the long-term plan an organization follows to achieve its mission, vision, and goals, serving as the foundation for portfolio, program, and project selection decisions.
Test your knowledge
Practice scenario-based questions on this topic with detailed explanations.