What is the focus of the triple bottom line approach?

The triple bottom line approach emphasizes a comprehensive evaluation of a business's performance, which includes three key dimensions: social, environmental, and economic. By focusing on social impact and environmental health, organizations adopting this framework seek to balance financial success with contributions to society and stewardship of natural resources.

This approach encourages businesses to assess not just their financial outcomes, but also how their operations affect people and the planet. It promotes sustainability by pushing companies toward practices that are socially responsible and environmentally friendly, ensuring that they consider the broader implications of their activities.

In contrast, the other choices focus on limited or singular aspects of business performance. Financial gain alone does not encompass the holistic perspective intended by the triple bottom line. Market expansion and cost reduction strategies, while important, are predominantly oriented toward maximizing profits without necessarily considering the social and environmental consequences of those strategies. Thus, the focus of the triple bottom line is squarely on integrating all three elements for sustainable development, making the emphasis on social impact and environmental health the correct interpretation.