According to Milton Friedman, the social responsibility of any business, whether big or small, is to increase its profits. Without a doubt, businesses should strive to make a profit while keeping in mind another objective to create shared value. From Comm 101, I learned that creating shared value can be defined as operating business in a way that achieves the “triple bottom line” of sustainability (economically, environmentally, and socially). TOMS as mentioned by one of my classmates is a business that strives to operate in the “triple bottom line”.
I agree with my fellow classmate that TOMS’ motto “With every pair you purchase, TOMS will give a pair of new shoes to a child in need. One for One” is a very clever incentive for customers to buy the shoes. They will be able to support a child without having to pay any extra cost other than the price they’re paying for a pair of shoes. In addition, it’s a well-thought-out strategy as it propels TOMS in the spotlight as a company that cares about the wellbeing of others and as a company that is willing to take action; therefore, being socially sustainable.
My classmate also mentions that “TOMS is overpriced considering the fabric and quality of the shoe itself; [however they’re capable of temporarily preventing] cuts and vulnerable to diseases and infections”. Since the quality isn’t that great, how long will the shoes in these poverty-stricken countries last? Will the children receive another pair? Can it be guaranteed?
Instead of supplying shoes to the children, TOMS should use the money that it uses to produce the free shoes in a more effective way such as hiring a company to refurbish the roads. By doing this, the prevention of cuts and diseases will last a longer period of time and not just life-span of the pair of shoes.
In addition, is TOMS harming an already established industry or industries in the 59 countries it is serving? By offering shoes at no cost, TOMS may be out competing local third world impoverished shoemakers who depend on their trade or sale of footwear to survive. Does the wellbeing of other individuals outweigh the wellbeing of these people?
Should TOMS consider another way to support underprivileged countries? If so, what should they do and what can we do as consumers?
References:
http://www.whydev.org/some-bad-news-about-toms-shoes/