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 has a unique business model that includes a triple bottom line. This reveals the company’s intention to strive to address the issues of People, the Planet, and Profit. Thread is a clothing company and they derive their resources in a very unique fashion. They go into impoverished communities and collect trash to then fashion into raw materials to produce clothing. They hire locals to collect the trash, and then it is produced in the Homewood neighborhood of Pittsburgh. This addresses the issues of the planet because it is obviously reducing pollution. However, it delves even deeper and addresses issues of the people. For those hired to collect trash, it gives them an income, and Thread’s marketing strategy also makes these individuals “known.” In addition, they hire workers to produce the clothing from Homewood, a predominantly African American neighborhood. This gives individuals in this minority community the opportunity to have a career and brings back business to the neighborhood. This neighborhood fell victim to riots and later gang infestation, which drove out business. In this way, Thread is really addressing the issues of the people. Finally, they sell the clothing that is produced to make a profit, effectively maintaining the company.
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 demonstrates all three of these shared value perspectives. The social sustainability is achieved by bringing back business to a previously abandoned neighborhood, and empowering minority workers in these areas. The business model is also economically sustainable, as it is using a cost-effective method to utilize an essentially infinite resource to accrue a profit. Finally, the business model promotes environmental sustainability because by utilizing these resources, it cuts back on plastic pollution.
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?
Business models like this have become increasingly popular. Innovators are constantly thinking of new ways to utilize waste in business and effective accrue a profit. As it becomes more mainstream, more and more of these companies will start to appear, and thus the triple bottom line approach may become more popular in business. Another company, 4 oceans, collects 1 pound of trash for every recycled plastic bracelet sold. It is evident that these companies will become more prevalent in the future, and the manager must account for all facets of sustainability.