Blended value

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.

Blended value business models

Blended value propositions require special consideration as businesses because the social value may not be an intrinsic and measurable product attribute such as size or quality. For example, consider what are referred to as Blood diamonds, diamonds whose mining contributes to a war. A high quality diamond may be tested and measured to determine its value, however a diamond that is mined without the use of child laborers or the financing of an armed conflict must be certified or inspected in some other way.