Question

Nike, now a triple bottom line company, had previously come under fire for the low wages that factory workers in Indonesia were paid. These low wages had an impact on which part of the triple bottom line?

Answer 1

Answer:

The correct answer would be, Social Performance. Low wages had an impact on the Social Performance of the Triple Bottom Line of Nike.

Explanation:

Triple Bottom Line is a framework based on accounting. It consist of three layers. Social, Environmental and Financial. Now most organizations use this accounting framework to evaluate their business performance in a broader perspective to create a greater value to the business.

So when Nike came under fire for the low wages that factory workers were paid in Indonesia, the Social Performance layer of this Triple Bottom Line of Nike was impacted.