Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Thinking Critically 9.1 >> TOMS SHOES: ETHICALLY GLOBAL? The focus of most of the chapters...

Thinking Critically 9.1 >> TOMS SHOES: ETHICALLY GLOBAL? The focus of most of the chapters in this text has been on companies seeking for in many cases failing to oper ate according to clearly

Thinking Critically 9.1 >> TOMS SHOES: ETHICALLY GLOBAL? The focus of most of the chapters in this text has been on companies seeking for in many cases failing to oper ate according to clearly established ethical principles that guide how they treat their stakeholders. The concept of "doing the right thing" has been presented as a natural alignment to their central business purpose, whether that's making cars, com- puters, or providing financial or consulting services. But what about a company that was started specifically to do the right thing? Not a consulting company to advise other companies on ethical busi- ness practices, but a company whose core purpose is "conscious capitalism"-delivering a product as a means to another end. In 2006 Blake Mycoskie was inspired by a visit to Argentina to bring the traditional Argentine alpargata slip-on shoe to the U.S. market. Not an unusual decision for a serial entrepreneur like Mycoskio, but what made this idea unique was his purpose for this business. While doing community service work in Argen tina, Mycoskie was struck by the country's health and poverty problems and in particular the large numbers of children with out shoes. His idea was to work with Argentinean shoemakers and vendors to produce shoes with vibrant colors and prints for the U.S. market and to offer those genuine alpargata shoes at a price point that would allow his company to give away one pair free for every pair sold. Mycoskie originally intended to give 200 pairs of shoes to the children of Los Piletones in Argentina, but the buy-one-give-one-away model proved so successful that the first shoe drop," as the donation visits have become known, delivered 10,000 pairs of shoes to match 10,000 pairs purchased by customers at such retailers as Bloomingdale's, Nordstrom's, and Urban Outfitters. In the four years since Mycoskie's company TOMS was founded, over 600,000 pairs of shoes have been donated in Argentina, Haiti, and Ethiopia. The Ethiopian shoe drops are especially significant because of a local disease called podoconiosis, a form of elephantiasis. Contracted through the soil, the disease causes disfigure ment and ulcers in the lower legs, and sufferers are ultimately banished from their villages like lepers. The good news is that the disease is 100 percent preventable by wearing shoes, and the last Ethiopian shoe drop delivered 37,000 pairs. An important point to remember when learning about TOMS is that this is a for-profit company. Mycoskie was inspired by the Newman's Own company started by actor Paul Newman and writer A. E. Hotchner in 1982, which has donated over $300 million to community and health-related benefit programs in the last three decades. Newman's Own is also for profit. The pursuit of a favorable tax status as a nonprofit company was never the point; it was the ability to give away the profits to worthy causes-that's why the companies were created in the first place.
QUESTIONS 1. Does TOMS buy-one-give-one-away model make it a more ethical company than a traditional shoe manufacturer donating money to a charity? Why? 2. Why would customers pay such a high price for a simple linen shoe? 3. Mycoskie designed TOMS model from the ground up. Could an established company improve its ethical standards by launching a model like TOMS? How? 4. Select two other industries that could copy the buy-one-give-one-away model, and explain how it could be adopted

Apr 17 2021 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions