Question

​​​​​​​case study on TOMS Shoes back when the company was an iconic darling of the good business and social responsibility.

• What made TOMS so cool? What happened?
• Did they have a good strategy upfront? Why or why not? What happened?
• What might they do about it?
• Will they retain their earlier social responsibility coolness? Or is that gone?

Answer 1

For several years, one of the darlings of the corporate philanthropy fan club has been Toms.And for good reasons.

TOMS is the handiwork of Blake Mycoskie, a young entrepreneur whose business model put a new spin on corporate social responsibility.

Mycoskie has built a company that is winning both sales and hearts by the buy one/give one model.

Initially, it was TOMS Shoes. Mycoskie got the idea for TOMS Shoes when he visited Argentina and saw many children who had no shoes. At the same time, many adults in that country were wearing a very simple yet comfortable shoe that caught Mycoskie's eye.

Mycoskie's company, TOMS Shoes, adopted that shoe​ style, produced it in many styles and colors, and promised customers that for every pair of shoes they bought, another pair would go to people in need.

Mycoskie's idea took off to such an extent that TOMS has dropped the “shoes” from its name and built a merchandising behemoth, having now expanded into sunglasses, coffee the purchase of which provides water where it's needed, and other social entrepreneurial enterprises. In fact, the TOMS giving universe keeps on expanding and now includes nutrition, healthcare, and education.

TOMS has also been emulated by many social entrepreneurs. Warby Parker that sells affordable eyeglasses online with the buy one / give one model may be the most well-known example.

But there's also quirky out of print that donates books when it sells its clothing line featuring out of print book designs, And there is Figs, a producer of clothing for healthcare workers, giving matching "scrubs" to healthcare professionals in developing countries. More recently, we've seen Bixby, for packpacks and lunchboxes; Bombas for socks; and Twice as Warm for hats, tops, and scarves.

TOMS, from following the emerging trend of social responsibility, has kicked off a wave of businesses that 'do-good' as part of their business plans. And the wave continues as the line blurs between nonprofit and for-profit organizations.