Judging from the wealth it creates, TOMS can be regarded as one of the most successful social enterprises in the world. The business strategy of TOMS is “One for One”. Admittedly, from a business standpoint, it distinguishes TOMS from other shoes maker and helps to attract customers. When considering the social change TOMS promoted-the real objective of a social enterprise, however, we might doubt whether TOMS introduced an effective solution to the social problems it tried to address. Personally, I am opposed to the “One for One” business model because it is made out of good intentions and unintended folly.

On the society level, it arouses ethical problems. When there was no TOMS, the children in villages in Africa might be also happy walking without shoes. Then TOMS came and gave away shoes. The irony fact is that TOMS don’t constantly provide them with free shoes. After they get used to wearing shoes, they will suddenly find that they couldn’t afford to buy new shoes when the old ones are worn-out. Then, what should they do?

On an economic level, TOMs competes with the local small business. There are local shoes makers in Africa who rely on the money earned by selling shoes to support their family. There are local shoes manufactures who hire the underprivileged people in the local communities to work in factories. TOMS “One for One” marketing campaign will be a catastrophe for those vulnerable shoe makers.

In conclusion, I would say that if TOMS wants to go further as a social enterprise, they need to adjust their current business model, though the process might be painful.

Article from:<http://knowledge.wharton.upenn.edu/article/one-one-business-model-social-impact-avoiding-unintended-consequences/>

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