I am opposed to the “one for one” business model because I believe it is not satisfying what TOMS intends to do for the under privileged people and does not benefit their business either.
The main intention of TOMS’ one for one business model is to help the society and the people around them. It’s working in a way, but in fact its more harmful than helpful. By giving the people produced goods, TOMS is encouraging the people to not work and benefit from the goods given. Even though they are products that the people could use, it allows the people to not work as hard as they should, leading to inefficiencies or even an increase in unemployment.
By following the one for one business model, TOMS is not going to be able to satisfy the demand of all the people they promised to give this aid to as they cannot sell those many products in the market. This will lead to inequality amongst the people which will result in conflict and disorder.
Instead of giving them their produced goods, they could give them a chance to work for them as that will allow them to earn the minimum wage which will be enough for them to eat food and sleep under shelter daily. This will also help reduce the unemployment and increase the gross domestic product (GDP) of the country that the company hires these workers from.
Therefore, the one for one business model is not as effective for firms to adapt since nowadays a job is better than a gift, hence I suggest companies should not follow it and instead adopt different ways to help the underprivileged.
Image source:
http://behindthehustle.com/2015/05/toms-handbags-accessories-backpacks-designer/
