Transportation Operations LINCS Practice Exam

What aspect does TBL metrics NOT measure?

1. Financial performance

2. Ecological performance

3. Social performance

4. Marketing effectiveness

The correct answer is: Marketing effectiveness

The correct answer is the aspect that TBL (Triple Bottom Line) metrics do not measure is marketing effectiveness. TBL is a framework that evaluates a company's commitment to sustainability based on three main components: financial, ecological, and social performance. Financial performance assesses the economic value a company generates, which includes profits, expenses, and other monetary aspects. Ecological performance focuses on the environmental impacts of a company's operations, such as resource usage, waste production, and pollution. Social performance evaluates how a company manages its relationships with stakeholders, including employees, customers, suppliers, and the wider community. Marketing effectiveness, however, is distinct from the TBL framework. It entails measuring how well a company's marketing strategies achieve business growth and customer engagement but does not align with the sustainability goals that TBL metrics aim to address. Therefore, TBL metrics do not include marketing effectiveness as it does not relate to the broader impacts of a business's operations on the economy, ecology, and society.