Scroll through your news feed or talk to people around Austin these days (March 2025), and you'll likely notice a shift. There's more talk about ESG (Environmental, Social, Governance) investing. We hear about employees wanting their companies to stand for something more than just profit. Customers are increasingly asking questions about where products come from and what impact businesses have on the world.
It begs the question: Is just focusing on the bottom line enough anymore?
For a long time, the thinking was often split. Businesses focused on making money, and “doing good” was left to charities, non-profits, or maybe a company's small Corporate Social Responsibility (CSR) department writing checks at the end of the year.
But what if that's an outdated model? What if creating positive impact isn't separate from the core business, but actually part of it?
This leads to an idea called “Blended Value.” It’s the notion that organizations can be intentionally designed to generate both positive social, environmental, or creative impact and financial returns, simultaneously. The key is that these aren't two separate goals running in parallel; they are woven together, ideally reinforcing each other. The “good” being done is integral to how the business operates and creates value, not just an afterthought.
Why is this idea gaining traction now?
- Trust is Currency: In an era where trust in large institutions is shaky, businesses that genuinely demonstrate positive impact and operate transparently can build deeper credibility and loyalty.
- Talent Magnet: People, especially younger generations, increasingly want to work for organizations whose values align with their own. A strong purpose beyond profit can be a major advantage in attracting and retaining talent.
- Meeting Expectations: Investors, customers, and communities are simply demanding more accountability and positive contribution from businesses.
- Long-Term Resilience: Arguably, businesses designed to solve real societal or environmental problems might be more resilient and sustainable in the long run than those focused purely on short-term financial extraction.
Okay, but how does this actually work? It requires intentional design. Think about it conceptually:
- Imagine a company creating innovative, affordable clean energy solutions. Their environmental impact (doing good) is directly linked to their product sales and financial success (doing well).
- Or consider a platform designed to tackle the crisis in local news by funding vital journalism (doing good). If it can build a trustworthy ecosystem around that mission—perhaps offering unique ways for the community to participate and invest in content (like the Story-Stock idea we're exploring at IHJ)—could it attract loyal users, mission-aligned advertisers, and impact investors (doing well)? The model itself tries to link purpose and financial viability.
It’s Not Easy Street
Let’s be clear, pursuing blended value isn't simple. It presents real challenges:
- Designing it In: Purpose has to be baked into the core strategy and operations from the start, not just sprinkled on top like marketing glitter.
- Measuring What Matters: How do you effectively track and report both financial performance and genuine impact? It requires robust metrics for both.
- Investor Patience: Blended value models might require a longer-term view and investors who understand that impact and profit can grow together, sometimes gradually.
- Authenticity is Key: There’s a big difference between genuine blended value and “impact washing” – using the language of purpose without real substance. Transparency and accountability are crucial.
So, Does Doing Good = Doing Well?
Maybe the question isn't whether it always does right now, but whether it can and should. Can we design businesses, platforms, and investment models where creating positive change isn't just a side effect, but a core driver of sustainable success?
What do you think? What examples of “blended value” do you see working (or not working) out there? As creators, readers, community members, or potential investors, how important is it to you that the ventures you engage with strive for more than just profit?
Perhaps in the complex landscape of 2025 and beyond, building for blended value isn't just aspirational – perhaps it's becoming the most intelligent path forward.