The so-called “One-to-one business model”(implemented by Tom Shoes) was established by Seven Fund, which was a social venture fund. One-for-one business model is to give away one pair of shoes when a pair of shoes was sold. The One-for-one Business Model: Avoiding Unintended ConsequencesThe main purpose of this business model is to help people in poverty.

Interestingly, there is another unintended benefit came with this business. We know from research that people are most motivated to help when they feel a connection to those whom they are helping. (By Deborah Small). Maybe this is the best explanation of the psychological thoughts when people are purchasing the shoes in Tom Shoes. When you are feeling that you are really helping others, then you are more willing to offer your help. In this case, not only can more and more people get donations, but also the sales in the company are stimulated.

During the following years since Tom Shoes implemented its one-for-one business, a few companies followed Tom’s step and sold a wide range of products.

However, in most cases, situations are much more complicated. “No charge for shoes” will cause majority of local small-and-medium sized companies facing the plight of shut down., which may leads to revenges. Also chaotic violence will appear because of the higher rate of unemployment.

As far as I am concerned, the best way to help those in poverty is to provide job opportunities and support for technologies, so as to help them find a way to earn a living and develop rather than relying on donations.