Name: Jay R S.

Diocarisa Date: February 14, 2024

Course: P2207: Marketing Management Year & Block: MM 3-3

TOMS Expands One for One Model to Eyewear

TOMS founder Blake Mycoskie witnessed the immense poverty in developing countries,
visual impairment and lack of clean drinking water are some of the common problems these
countries are facing. Hence, TOMS blend a for-profit business with their strategic
philanthropy by creating a one-for-one concept. This concept is like a buy one give one
concept, for every eyewear sold a person with vision problems will receive surgery and
prescription glasses. Its first application was on their shoes which provides smiles for kids
and anyone who receives it who weren’t able to have one on their lives. The concept has
expanded to their eyewear which have helped a number of individuals who has visual
impairment to receive treatments.

However, complicated supply chain has become ethical issues and affect their social
responsibility. China, Argentina, and Ethiopia are the countries which TOMS manufactured
their products, these countries are known to have lower labor costs and lack of labor union
that is why some of employee’s rights were not granted by their employers. This lack of
regulation forced TOMS to create standards based on Internal Labor Organization and starts
doing auditing on the manufacturing sites, ensuring quality and safety of production as well
as regulated job ethics and just compensation. They have created strong partnership with their
manufacturers to build trust and foster long term commitment.

As TOMS continues to expands their one-for-one concept, later they expanded their
products by selling bags of coffee which for every sold item, a clean drinking water will be
provided in some of the developing countries in the world. Furthermore, TOMS concept has
upgraded the concept of philanthropy as social responsibility. The need for constant support
on these initiatives are sometimes not sustained well, but with TOMS concept one-for-one
they were not only able to generate sales but they also sustained their philanthropic activities.
1. Do you think TOMS is successful because of its unique products, or its approach to
social responsibility?
I think TOMS is successful because of their unique approach to social responsibility.
The concept of buy one-give one concept or one-for-one as they call it have leveled
up the philanthropic aspect of the CSR. Customers are driven to purchase more
because they were not only fulfilling their desires, but also, they able to help others in
need. The beauty about their philanthropic initiatives is the customers have grown
long-term commitment to the brand which will surely drive constant repeat purchase
and TOMS will definitely sustain its philanthropic activities and programs.

2. How does TOMS manage its supply chain in order to ensure ethical and socially
responsible conduct?
TOMS manufacturing is currently in China, Argentina, and Ethiopia who has history
of lower labor cost and lack of labor union that will regulate employee’s rights,
ending up potential issues arise for TOMS that may affect their social initiatives.
Quality production in these areas were not also regulated well which may affect
production of shoes and eyeglasses. Hence, the action that they did was doing audit
among manufacturing site on these countries to ensure that they meet standards set by
International Labor Organization. They also strengthen their relationship by creating
strategic partnership with their suppliers which fosters trust resulting to strict
compliance.

3. How does the TOMS’s business model relate to the understanding of stakeholders and
strategic philanthropy?
TOMS founder Blake Mycoskie have witnessed the immense poverty in Argentinian
villages, kids were not able to have shoes which resulted to the development of one-
for-one shoes. TOMS strategic philanthropy mainly arises from their effort to
understand what the community needs, helping out areas or parts of the world that
extremely faces huge burden of poverty. TOMS have strategically seen important
issues to address like health. For instance, they see that 80 percent of vision
impairment in developing countries are preventable or curable, they created a one-for-
one concept that helps individuals with visual impairment have their treatment