Question

1/. Explain what is Triple bottom line principles?

2/. Describe a framework for a work plan in an Australian accounting environment using the triple bottom line principles (Not just describing the pros and cons of using triple bottom line principles, but an actual outline of work plan on how it works in Australian accounting environment using the principles) ((Please type up your answer)

Answer 1

Triple bottom Line is a method used to measure profits of the company, but also focus on implementation of social & cultural norms of the society.

. These three types of factors are called the three Ps: profit, people, and planet. profit is the bottom line of the income statement. The second bottom line is for the people of a company and determineswhether that company has displayed social responsibility. The planet bottom line measures the impact a firm has had on the environment. When companies focus on the non-financial aspects of a business, then they will more likely prove to others that they are responsible for their actionsand succeed greater as a whole.

A company must invest some amount of revenue in doing constructive efforts that are good for the society. If a set amount of money is to be allocated between Flipcart and HBO now, the Triple Bottom Line factors will influence the investor's decision. The profit margin in flipcart is less when compared to HBO now, so an investor will probably prefer to invest in HBO because as an investor, you’re only interested in gaining maximum profit from his investment, HBO will be the most favorable choice for him. However, if an investor is new to the market, HBO must invest most of their revenue so that they can enter the market with new products and services. The Triple Bottom line strategy assures that in addition to internal profit of the company, the host/client should also gain some profit. Flipcart must invest in their pricing department so that they can earn maximum profit from their products that are previously presented in the market. To gain this profit, they can offer low price products with their best products so that low price products are also sold at high prices and profit can be gained. Like all companies, gaining market fame is very important. What HBO could do to gainmarket fame is to invest in making movies on social issues like child labor and human traffickingand stream them live. This will help the company gain market recognition. If they are able to get maximum traffic on their domain they can also get more videos and TV shows from sponsors and increase their business and profit. Flipcart can also launch shopping strategies at discounted rates or jumbo offers like buy one get free. They can also launch any movie, toy or product that is good for people who are using their online store. As an example, they can offer a free gift card for purchasing an Fliocart product. For both Flipkart and HBO now it must be assured they not offer any products or services that are not good for the customers and the environment. The toys and other items sold by the Flipkart store must be made-up of renewable materials that degrade easily. The books and magazines offered by them must have at least one topic, which can help them make constructive efforts for the society.