Shared Value – People/Planet/Profit: The shared value approach to analysis for business decision-makers has a conceptual focus through perspectives like the “Triple Bottom Line” – in which a manager reviews how a business model addresses issues of People, Planet and Profit. Based on what you see in the 55 second video on Thread International, how is Thread’s business model reflective of People, Planet and Profit:
Thread focuses on the supply chain and how people living in poor towns are able to get work and livelihood through collecting plastic bottles for their cause. Collecting these plastic bottles for repurposing greatly helps the environment and cuts back on waste. This consideration fulfills the Planet section of the “Triple Bottom Line”. Once these plastic bottles are transformed into fabric and are being sold as products, Thread makes a profit as consumers purchase them. Thread also has a great backstory to where their fabrics come from (it’s not just a backpack, it’s a backpack made of recycled plastic water bottles). This additional feature is appealing to many buyers that are concerned about the environment and don’t mind spending a few extra dollars to save the earth.
Shared Value – Social/Economic/Environmental : The shared value perspective to analysis for business decision-makers through measurement approaches like documenting Social Sustainability, Economic Sustainability and Environmental Sustainability. Based on what you see in the 55 second video on Thread International (also on the website), how does Thread International demonstrate its impact in one (or more) of these areas:
Thread International clearly demonstrates its impact on Environmental Sustainability by repurposing plastic bottles from poor countries and making them into quality fabrics for consumers. I would also say that they impact Social Sustainability by providing jobs to people in poor areas. These jobs allow income and increase people’s quality of life.
Other Examples Like This?: As a future manager facing complex environments, where do you see the utility of either of these approaches to shared value in your future work?
Both of these approaches are advantageous. The People, Planet, and Profit approach clearly discusses the individual people that are being affected which is a great aspect. It also clearly states profit possibility which in today’s world is extremely important in most businesses. This seems more useful in a small business decision because everything is very specific. The Social/Economic/Environmental approach seems more broad and can be taken in more directions. Social Sustainability could discuss an entire community rather than individual people which in some cases might be more beneficial. Economic Sustainability also opens the discussion up to so many things and can tie in a lot of aspects. This approach would maybe work best for large decisions because you can bring in additional considerations under the broad headings.