The blended value proposition: Integrating social and financial returns

Abstract

Value is often viewed in either economic or social terms. The Blended Value Proposition asserts that true value is non-divisible, consisting of a blend of economic, social, and environmental components. This perspective requires us to re-examine our understanding of the nature of capital, the methodology for calculating rates of real return to investors, and the role of for-profit and nonprofit organizations in the value creation process.