The Triple Bottom Line and the Global Reporting Initiatives

Introduction At present, many businesses have acknowledged the importance of paying a lot of attention to the issues of sustainability. Social equality and environmental concerns are being put to the fore by many organizations.Advertising We will write a custom essay sample on The Triple Bottom Line and the Global Reporting Initiatives specifically for you for only $16.05 $11/page Learn More It is also necessary to note that the 2008 crisis which is often associated with the ignorance of principles of sustainability has also shown that it is essential to adhere to these principles (Jackson, Boswell and Davis 2011). The Triple Bottom Line (TBL) and the Global Reporting Initiative (GRI) are aimed at developing a more sustainable business environment on the global scale. These initiatives are based on quite similar principles. Moreover, it is possible to note that GRI is a more comprehensive and detailed version of the TBL. This is the major reason why I wo uld choose this reporting initiative as a manager of a company. The Triple Bottom Line Reporting Initiative To understand major peculiarities as well as advantages and downsides of both initiatives, it is necessary to define them. The TBL reporting initiative is employed in business accounting â€Å"to further expand stakeholders’ knowledge of the company† (Jackson, Boswell and Davis 2011, 56). Robins (2006, 2) provides quite a precise definition of the TBL reporting initiative which â€Å"aims to extend decision making and disclosure so that business decisions explicitly take into consideration the impacts on society and the environment, as well as on proï ¬ t†. Clearly, this approach makes companies address three major issues when reporting, i.e. financial data, data on social and environmental sustainability. This approach was developed in the 1990s. Companies started including data on their social and environmental sustainability initiatives in their finan cial reports.Advertising Looking for essay on environmental studies? Let's see if we can help you! Get your first paper with 15% OFF Learn More According to surveys implemented in the early 2000s almost 70% of big European corporations and 40% of corporations in the USA exploited the approach in 2002 (Robins 2006, 4). Robins (2006) also stressed that the scandals of 2001 associated with such companies as Enron (the USA), the HIH (the Health International Holdings) (Australia) and other organizations made companies committed to adherence to TBL reporting initiative. Thus, huge corporations (usually operation globally) adopted the approach and started including data on social and environmental sustainability initiatives in their financial reports. However, it is necessary to note that the TBL initiative cannot be regarded as a comprehensive guideline to form reports. This is largely an approach, an idea, and companies are free to choose their own ways to report on their sustainability strategies. The Global Reporting Initiative On the contrary, though the Global Reporting Initiative is based on the principles of the TBL but it â€Å"provides criteria to measure a company’s behavior in each leg of the Triple Bottom Line† (Stenzel 2010, 1). The GRI is a specific guideline for the companies to follow. This initiative is aimed at providing a single format for companies to add transparency and accuracy to companies’ accounting. It is necessary to note that the GRI is used in Europe predominantly but it is spreading across the globe at a considerable pace. Such companies as National Australia Bank, Mauser Group, Coca-Cola’s divisions and many other huge corporations are participating in the GRI. Many researchers as well as business people claim that there are some disadvantages in this approach. For instance, it requires more time to create such a report and there is often lack of time.Advertising We will write a custom e ssay sample on The Triple Bottom Line and the Global Reporting Initiatives specifically for you for only $16.05 $11/page Learn More The GRI Is More Applicable I would choose the GRI due to a number of reasons. In the first place, the GRI provides a specific comprehensive format which can be used for reporting. Therefore, there is no need to waste time on developing an appropriate reporting framework for the company. It is important to note that the GRI provides a detailed reporting framework that addresses all three dimensions of the TBL reporting initiative. Adherence to the GRI format ensures transparency and comprehensiveness of a report. I would be sure that the report highlights all the necessary points which reveal the company’s involvement in the sustainability movement. Apart from this, the use of GRI can help create a favourable image of the company. Unified reporting format makes it clear for stakeholders that the company is moving in the ri ght direction. Investors, companies and customers want to be sure that the company is responsible and is following the principles of sustainability. A company that provides a clear and comprehensive report including financial data as well as data on social and environmental sustainability initiatives attracts more investors and clients, which, in its turn, can ensure the company’s development and growth. Conclusion To sum up, it is possible to note that the TBL reporting initiative and the GRI add transparency and clarity to accounting reports. These initiatives help companies follow the principles of sustainability. However, it is also important to note that the GRI provides specific guidelines to develop accounting reports while the TBL is rather a set of principles to follow in reporting. I would choose the former approach due to its comprehensiveness.Advertising Looking for essay on environmental studies? Let's see if we can help you! Get your first paper with 15% OFF Learn More The GRI can help a company follow the principles of sustainability and develop a favourable image in the business world, which will inevitably lead to growth. Reference List Jackson, Aimee, Katherine Boswell and Dorothy Davis. 2011. â€Å"Sustainability and Triple Bottom Line Reporting – What Is It All about?† International Journal of Business, Humanities and Technology 1(3): 55-59. Robins, Fred. 2006. â€Å"The Challenge of TBL: A Responsibility to Whom?† Business and Society Review 111(1): 1-14. Stenzel, Paulette L. 2010. â€Å"Sustainability, the Triple Bottom Line, and the Global Reporting Initiative.† Global EDGE Business Review 4(6): 1-2. This essay on The Triple Bottom Line and the Global Reporting Initiatives was written and submitted by user Al1a to help you with your own studies. 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