Uncategorized

Lessons in Corporate Social Responsibility (Shoes) from TOMS

A well-functioning business model, a wave of social responsibility

For many years, one of the darlings of the corporate charity fan club was TOMS. And for good reasons.

TOMS Blake Mycoskie is a work of a young entrepreneur who put a new spin on his business model Corporate Social Responsibility.

Mycoskie built a company that wins both sales and hearts by the buy one / give one model.

Initially, it was TOMS shoes. Mycoskie thought of TOMS shoes when he visited Argentina and saw that most of the children had no shoes.

At the same time, many adults in the country were wearing very simple yet comfortable shoes that caught Mycoskie’s eye.

Mycoskie’s company, TOMS shoes, adopted the shoe style, produced many styles and colors, and promised customers that for every pair of shoes they buy, they will go to people in need of another pair.

Mycoskie’s idea TOMS has dropped “shoes” from its name to such an extent that it has now built a behemoth of products sold, sunglasses, coffee, and the purchase of supplies of water where needed, without expanding to other social business activities. The TOMS giving universe has expanded to now include nutrition, health care, and education.

TOMS has also been imitated by many social entrepreneurs. Perhaps the most well-known example is the Warby Parker/One model that sells affordable glasses online with one buyer.

But selling its clothing line featuring printed book designs, Fig, a manufacturer of clothing for health care workers, has also played a role in printing books that donate when there is a “rub” matching to health care professionals in developing countries.

More recently we see Bixby, for backpacks and lunchboxes; Bombas for socks; Hats, tops, and scarves and twice as warm.

TOMS, following the emerging trend of social responsibility, has launched a business wave as part of their business plans to ‘do-good’. As the line blurs between non-profit and for-profit organizations, it still shifts.

Today, there are many ways to build a business that can make it easier to do good.

Lessons from TOMS for Social Entrepreneurs

A trend ride

TOMS is only about their expenses. It happened at the intersection with the rise in consumers who became more aware. They are willing to spend on consumer goods that do some good in the world.

The latest Cone Communications CSR study (perhaps picking up on government action) revealed that 63 percent of Americans expect business to lead to social and environmental change. Additionally, 78 percent want companies to be involved in social justice issues.

As for buying power, 87 percent of consumers said they would buy a product because the company is involved with an issue they care about, while 76 percent said they would refuse to buy a company’s product or service if it supported an issue they thought was wrong.

The rise in popularity of the no-related market has been phenomenal, benefiting companies for many reasons and helping them polish their reputation as good corporate citizens. Because of the phenomenal success of TOMS, I rode in a new direction.

Baking for good

TOMS goes beyond what other companies do.

It has been established for the same main reason that it has done well in sales. Just Mycoskie, we know that every day we will lose a pair of shoes for each sale. If we can’t do it because of business… “Then business says it doesn’t work.”

Build in the environment without damage

A model for TOMS is the self-feeding chain. Mycoskie asserted, “If I were to take half a million dollars to buy shoes that would encourage children, I would never have been able to give shoes. It would never have reached far and is now sustainable as TOMS shoes.”

Give employees a reason to be proud

Mycoskie stressed that employee morale at TOMS is amazing. “When you know that everything you do makes children happy..how can you be down?” he said.

Attach a story to your product

Give your customers a story they can retell over and over again. These shoes (and glasses and all other TOMS merchandise) are unique enough and stylish enough to appeal to the modern consumer. Purchase can brag about the fact that they are from TOMS, and what that means here.

Buyers want to feel good about their purchase and tell their friends. TOMS merchandise is fresh and creates buzz.