Social Enterprise Business Models: Value Rub Model

This week’s social enterprise model covered by Professor Bentley is the Value Rub model. In a typical value rub model, there is a market-based solution that tackles societal and environmental problems. In this model, a company takes a percentage of its profit and then donates that back to an aligned impact opportunity. United By Blue and TOMS are just two out of thousands of companies that utilize this model.

Utilizing the Value Rub Model

Apparel retailer, United By Blue, utilizes the value rub business model.  United By Blue’s philosophy focuses on the cleaning of our nation’s oceans and waterways. For every product that is sold, the company removes one pound of trash from the oceans and waterways through company cleanups. United By Blue is an environmental mission company, in which product sales are linked to environmental actions.

TOMS is another company utilizing the Value Rub business model. With each pair of shoes sold, TOMS donates a pair to individuals in need. TOMS’ model is not just limited to footwear, but has also expanded to glasses and coffee too. TOMS’ business model is having positive impacts on communities across the globe.

What sectors should utilize these models?

Companies across all sectors can benefit from using a value rub model. By taking a look at the impact a company has, or can have, on the community, workforce, and environment can provide new ways for a company to grow and prosper.

In the final segment of this September series, Professor Bentley will be discussing the Mission Market model.