Aralyn Tran

Endre Offerdal

Karen Diaz de Valdes

JungHyun Lee

Estefania Arizmendi

TOMS

Based in California, main office in Los Angeles.

More than 500 In-stores and stores worldwide, 200-500 employees.

Designs and sell shoes bases on the Argentine alpargata design.

The shoes are made of natural hemp, organic cotton and recycled polyester.

Have given 45 million pairs of shoes to children in over 70 countries.

Blake Mycoskie noticed when he was in Argentina; shoes had a huge impact on these childrens

future.

Founded on a moral principle of giving back, with the one for one model

What TOMS is doing

TOMS is run by its well-known one for one strategy since its establishment, with the slogan of Shoes for
Tomorrow.

Eyewear

Helps restore eyesight

Shoewear

Buy a pair of shoes, give to a child in need

Bag

Buy bagwear, help give a mother a safe birth to a child

Coffee

Buy cofee, and give a person 2 weeks supply of clean water

Financial information
According to a 2009 CNBC show, it only costs TOMS $9 to produce each pair of shoes.
The price of shoes sold in stores ranges from $44 to over $100

Timeline
One day without
shoes iniative
2008
2006
Launches
TOMS
shoewear

Launched
TOMS Eyewear
2011

Launches TOMS Bags,

Announces of
production to be done
in developing countries
2015
2014
Bain bought half
of TOMS
Launched
TOMS Roasting
CO

Which theories did we use?

-

Stakeholder theory:

the organizational management and business ethic theory

use to analyzed values and morals of a business organization.

- Carrol model (1991):

the pyramid of corporate social responsibility

Stakeholder theory
Internal
stakeholders

External stakeholders
Suppliers

Managers

Consumers
Society

Employees

Creditors
Shareholders

Owners

Government

Carroll model (1991)

Carroll model (1991)

Aim/Examples

Impact

TOMS

Economic
responsibilities

To be profitable
Economic performance

Employees
Owners

Making profit for shareholders

(Bain&Blake)

Legal
responsibilities

To obey the law

Employees
Owners
Consumers

None of the practices have broken

any laws or regulations.

Ethical
responsibilities

Avoid questionable practices or

operate above the minimum
standard of the law

All stakeholders
(Mostly on consumers
and employees)

Responsible overall in terms of their

business practices.

Sustainability
responsibilities

To be a good corporate citizen

and improve the quality of life for
the society

Communities
Employees

Positive since their one for one

strategy and business model aims to
be sustainable in helping the society

Ethical/Cultural issues
-

Critic from development organizations caused them to change its production

Financial information is not published in detail

Disruption of local economies

Clothing donation causes economic stagnation

Its still for-profit company, critized for using their one for one model for profit

Vague about labor standard in China, Argentina and Ethiopia

Recommendation

Transparency in financial information

Add more production to developing countries than 1/3

Reveal more information about one for one business model

Clearer code of conduct

Bains entrance raises questions (CEOs gain)

Reference

Supplier code of conduct, TOMS

Bain Capital Buys Toms, Will Still Give Away Shoes, Kyle Stock, Bloomberg Business, August
21, 2014

Win a Potentially Life-Changing Trip From Toms, DAVE BANKS, 03.09.12

Romney as Job Creator Clashes with Bain Record of Job Cuts, Justin Blum and Lisa Lerer, July
20, 2011

Transparency in supply chains, TOMS

Reaching Milestones in local manufacturing, TOMS, October 18th, 2014

Carrol (1991) CSR Model

Kenya child labour data country brief, International Labour Office