“One for One” business model of Toms is that consumer buy a pair of shoes from Toms, Toms will give a pair of shoes to someone who needed. This project seems like Toms did a good job of taking social responsibility. However, it turns out just the opposite.
Firstly, this action disrupts the local business. A great number of charitable gifts erratically enter into the poverty area will cause a waste of local products. In general, the resources are not used efficiently and effectively. Secondly, an adage is saying that
“Give a man a fish and you feed him for a day, teach him how to fish and you feed him for a lifetime”.
This adage can be applied here–the people in poverty area actual need production methods and production instruments instead of “shoes”. Thirdly, according to Corporate Ethics and Corporate Governance by Zimmerli, the projects like “one for one” are all the marketing tools of the company. Toms aims to use the benevolence of consumers and make them feel good to pay for the shoes. These companies do not think about the long-term impact as long as this program looks good.
I can not say this “one for one” model is completely bad, but it is not mature enough for today’s economy.
Work Cited
http://www.fastcoexist.com/1679628/the-broken-buy-one-give-one-model-three-ways-to-save-toms-shoes
http://www.forbes.com/sites/jamespoulos/2012/04/11/toms-shoes-a-doomed-vanity-project/
http://knowledge.wharton.upenn.edu/article/one-one-business-model-social-impact-avoiding-unintended-consequences/
