The British environmental expert and author John Elkington coined the phrase 'the triple bottom line' in an attempt to express what he believed the future will require of business. He asserted that, in addition to the 'normal' financial results, companies must be willing to give an account of the impact that their activities have on the social as well as the biological and physical environment.
Traditional accounting practices provide excellent historical information related to profitability and the company's use of its assets. They do not, however, offer anything other than a limited ability to predict future performance or development potential.
Therefore it may become increasingly important to offer a more holistic and future-facing view of the company's abilities to exploit its social and intellectual capital alongside its physical assets.
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