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’s business model represents the people aspect of the “Triple Bottom Line” because the company is providing jobs for local residents and helping people in poorer neighborhoods by cleaning up their excess plastic bottles and trash. The planet component of this company comes from the reduction of waste, particularly plastic bottles. Thread International is taking items that would normally end up in landfills and turning them into products that people can use, which is helping to save the environment. Lastly, the company is making a profit by using an extremely cheap material to make items they can sell to everyday consumers. This shows that Thread International matches the perspective of the “Triple Bottom Line” because it is profitable while helping the environment and everyday people.
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 impacts Environmental Sustainability because it reduces the build-up of plastic bottles and other waste in landfills in an effort to preserve the natural environment. Not only are they not harming the environment in the manufacturing of their products, they are actually helping it by reusing waste. Thread International also impacts Economic Sustainability because the material they use to create their products costs virtually nothing, so they can make a decent profit while keeping the cost of their product reasonable. The main expenses within production they have to account for are the manufacturing costs, the costs of any additional materials, and the cost of labor. Thread International impacts Social Sustainability as well because it is helping local communities reduce the amount of trash that builds up in their neighborhoods and it is employing many residents of Pittsburgh and surrounding communities.
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?
I think that as we have learned, the best way to expand a business and reach more consumers is to make meaningful connections with other companies and everyday people. Therefore, it is extremely important to make sure your company is benefiting the surrounding community in some way, whether that be through providing jobs or using some of your profit to finance other projects, companies, or charities. It is also extremely important to be aware of the environmental implications of your business because we are depleting the earth’s resources at such a rapid pace and we need to figure out ways to help it instead of damage it further. This is why the “Triple Bottom Line” is so vital for future businesses because each component of People, Planet, and Profit need to be addressed.