Blended value
Encyclopedia
Blended value refers to a business model
that combines a revenue-generating business with a component which generates social-value. The term is usually attributed to Jed Emerson, and sometimes used interchangeably with triple bottom line
and social enterprise
. An example is a fair trade
product such as coffee, available for purchase in an ordinary shop, but which also delivers social value through the guaranteed higher prices paid to the farmers and long-term investments in their communities.
Blended value can be distinguished from Corporate Social Responsibility (CSR)
and corporate philanthropy because the social impact is at the core of the value proposition
, rather than as a side effort.
In many instances, blended value businesses can be considered a type of product bundling
. Considering the previous example in this way, a consumer can purchase coffee, and also may make a charitable donation to a community of coffee growers. Bundling the two items together as a fair trade product should deliver some benefit to the consumer compared to purchasing them separately, such as convenience or lower total cost.
Business model
A business model describes the rationale of how an organization creates, delivers, and captures value...
that combines a revenue-generating business with a component which generates social-value. The term is usually attributed to Jed Emerson, and sometimes used interchangeably with triple bottom line
Triple bottom line
The triple bottom line captures an expanded spectrum of values and criteria for measuring organizational success: economic, ecological, and social...
and social enterprise
Social enterprise
A social enterprise is an organization that applies business strategies to achieving philanthropic goals. Social enterprises can be structured as a for-profit or non-profit....
. An example is a fair trade
Fair trade
Fair trade is an organized social movement and market-based approach that aims to help producers in developing countries make better trading conditions and promote sustainability. The movement advocates the payment of a higher price to producers as well as higher social and environmental standards...
product such as coffee, available for purchase in an ordinary shop, but which also delivers social value through the guaranteed higher prices paid to the farmers and long-term investments in their communities.
Blended value can be distinguished from Corporate Social Responsibility (CSR)
Corporate social responsibility
Corporate social responsibility is a form of corporate self-regulation integrated into a business model...
and corporate philanthropy because the social impact is at the core of the value proposition
Customer value proposition
In marketing, a customer value proposition consists of the sum total of benefits which a vendor promises a customer will receive in return for the customer's associated payment ....
, rather than as a side effort.
In many instances, blended value businesses can be considered a type of product bundling
Product bundling
Product bundling is a marketing strategy that involves offering several products for sale as one combined product. This strategy is very common in the software business , in the cable television industry Product bundling is a marketing strategy that involves offering several products for sale as...
. Considering the previous example in this way, a consumer can purchase coffee, and also may make a charitable donation to a community of coffee growers. Bundling the two items together as a fair trade product should deliver some benefit to the consumer compared to purchasing them separately, such as convenience or lower total cost.