TOMS Expands One for One Model to Eyewear

While many organizations try to incorporate cause-related marketing into their business
operations, TOMS takes the concept of philanthropy one step further. TOMS blends a for-profit
business with a philanthropic component in what it terms the One for One model. For every
pair of shoes sold, another pair is provided to a child in need. Recently, TOMS has expanded
into eyewear. For every pair of eyewear sold, a person with vision problems in a developing
country receives surgery, prescription glasses, or medical treatment to help restore his or her
sight. Unlike many nonprofits, TOMS’s for-profit business enables the company to support its
philanthropic component, which keeps the company from having to solicit donations.

TOMS founder Black Mycoskie got the idea for the project when he saw immense poverty in
Argentinian villages where people could not afford shoes for their children. He created a
business in two parts: TOMS, a for-profit business would sell the shoes and Friends of TOMS,
the company’s nonprofit subsidiary, would distribute the shoes to those in need.

The original product was the alpargata, a slip-on shoe made from canvas or fabric with
rubber soles. TOMS is a thriving business today due to this shoe having caught on.

After the success of the shoes, TOMS decided to launch another product in the One for One
model. Vision seemed like a logical choice. Toms decided that for every pair of eyewear sold,
TOMS would provide treatment or prescription glasses for those in need. This was applied to
Nepal first.

TOMS takes social responsibility seriously. The cost of the extra pair of shoes and eyewear is
built into the price of the product it sells. TOMS also works closely with local nonprofits to
understand what the need is in the community.

Customers who do business with TOMS are made aware and support the company because
they know that their purchases help great causes. Although it has no marketing budget, the
company provides internships and engages brand ambassadors at universities to spread the
TOMS message. One day a year the company participants spend one day without shoes to
understand what children in developing countries must undergo daily.

TOMS does not see its mission as complete. The company looks for new ways to apply its
One for One model. It recently started selling bags of coffee and for every bag of TOMS Coffee
sold, the company contributes 140 liters of clean drinking water to those in areas without clean
water. TOMS demonstrates how an innovative concept and the ability to incorporate
philanthropy into business operations can create a successful company that can make a
difference.
Questions:

1. Do you think TOMS is successful because of its unique products, or its approach to
social responsibility?
2. How does TOMS manage its supply chain in order to ensure ethical and social
responsibility conduct?
3. How does TOM’S business model relate to the understanding of stakeholders and
strategic philanthropy?