Response to Chaya Bains’ Blog: “Corporate Social Responsibility: TOMS”
In her blog post “Corporate Social Responsibility: TOMS”, Chaya Bains puts into perspective the “buy one give one” model used at TOMS Shoes. She writes that although this is a great act of CSR, there are downsides, and the company should consider a different facet of helping developing nations. Her explanations are convincing, for instance children need “durable footwear to protect their feet”, also “developing nations may become dependent upon this act of providing free footwear”; I would also include the long-term associated costs. Overall, I agree with her underlying concern that is: is the “buy one give one” model actually lifting children out of poverty?
After doing some research, I found an article that explains an improved alternative to answer that question. From January, 2014, TOMS began manufacturing some of it’s shoes in Haiti. By 2015, the company hopes to have one third of it’s shoes made in countries where it’s “buy one give one” model was active. This would create many more desperately needed job opportunities. TOMS would be creating shared value opportunities, following the mechanism stated in the Harvard Business Review article “Creating Shared Value”:
- Redefining products and markets- Meeting the social needs of impoverished people.
- Redefining productivity in the value chain- Improving the cost of making shoes, while driving economic and social development.
- Enabling local cluster development- Creating a need for better infrastructure and communication channels in these developing nations.
In conclusion, this would promote the company as one that’s bringing people out of poverty in the long-term. Before reading Chaya’s post, I had not known about TOMS Shoes’ “buy one give one” model, therefore with increased advertising of their social awareness, more like-minded consumers will be reached.