I am opposed to the “one for one” business model because…
In terms of Toms vs. soleRebels, no one would buy shoes if Toms will distribute it for free. Also, the “one for one” business model of Toms ruins the industry for local businesses/cobblers. Toms cannot accurately produce the correct number of shoes in the correct sizes, thus resulting in surpluses and shortages. Furthermore, it can be said that Toms may distribute shoes to places that are in need other things that are more vital. The “one for one” business model” is not a sustainable idea because once Toms stops distributing the shoes, the supply stops instantly, with a lack of local businesses to fill in the market gap. One of the biggest problems with Toms’ “one for one” business model is that Toms do not employ natives within the country that they hand out free shoes and do not actually add to the local economy. Toms means well and is good in theory but in practice the outcomes are not that favourable.
The SoleRebels Weaving Team – photo sources: http://www.solerebels.com/pages/our-team
The positives of soleRebels provides jobs, training and medical cover for locals. They also provide transport for locals which means that people are not made worse off just because they cannot get to work. SoleRebels pay three to four times the minimum wage, allowing more people to be supported by the one salary. Due to the fact that they operate within Ethiopia, they put more back into the Ethiopian economy.
Sources:
http://www.fastcoexist.com/1679628/the-broken-buy-one-give-one-model-three-ways-to-save-toms-shoes