Toms Shoes or SoleRebels? What is a sustainable business model?

Coming across a social enterprise is always great. This is because businesses such as SoleRebel and Toms Shoes are able to integrate running a business while creating societal value. But, as mentionned several times throughout our marketing sustainability class – there is a big difference between corporate social responsibility and creating shared value (CSV).

Upon researching further into both Toms, I realised that I wasn’t entirely comfortable categorising it as a sustainable business model. Its “one-for-one” model, buy one pair-donate one pair, seemed to stradle the line of CSR and CSV for me . SoleRebels on the other hand is a very clear example of CSV.

SoleRebels is a company that produces and sells handcrafted shoes made by local Ethiopian Artisans, using recycled rubber. Apart from the obvioius environmental ethos, SoleRebels provides ; 4 times Minimum wage, Medical coverage(The company goes to the extent of bringing certified doctors to the employees as commuting to government hospitals would take hours of commuting), transportation for workers with disabilities and has refused to incorporate the quota system in wage payments.Paired with their community involvement and major sustainability achievements, SoleRebel not only provides a progressive and comfortable environment for the employees but also has given the community as a whole the chance to stand up on its own feet.

Providing employment and these benefits allows members of the community to learn , grow and provides financial security. Because SoleRebels is manufacturing only in Ethiopia at the moment they are able to give full and efficient attention to the community. Quality >quantity, Helping a smaller community but more effectively may actually be more beneficial than helping a large number of people but less-substantially.

This brings me  Toms Shoes. As commendable as their ethos is, there are multiple other aspects to consider. Yes, provision of shoes, clean water and such are definitely impactful. But are these actions creating sustainable shared value in the targetted communities?

(Sole Rebels Ethos : https://www.solerebels.com/pages/our-ethos)

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