US CMA Part 2 · Chapter 9 · Question 20 of 23
A company evaluates its performance not only on profit but also on its impact on employees, communities and the natural environment. This approach is commonly described as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) The triple bottom line (people, planet and profit)
Explanation
The triple bottom line expands performance measurement to social (people) and environmental (planet) outcomes as well as economic results (profit). It is closely linked to corporate social responsibility and sustainability reporting. Shareholder primacy focuses solely on returns to shareholders.
More Professional ethics MCQs
- Q22A US company discovers that one of its overseas suppliers uses child labor, which is not prohibited by local law in that country. Which…
- Q23Near year-end the controller of a division tells a management accountant to defer recording $250,000 of known expenses until next year so…
- Q1Which of the following are the four overarching ethical principles in the IMA Statement of Ethical Professional Practice?
- Q2Under the IMA Statement of Ethical Professional Practice, which four standards must members comply with?
- Q3A management accountant is assigned to evaluate a lease accounting change but has not kept up with recent developments in lease…