CASE 30
TOMS Shoes: A Dedication
to Social Responsibility
Margaret A. Peteraf
Sean Zhang
Tuck School of Business, Dartmouth
College
Dartmouth College, Research Assistant
Meghan L. Cooney
Dartmouth College, Research Assistant
W
hile traveling in Argentina in 2006, Blake
Mycoskie witnessed the hardships that
children without shoes experienced and he
became committed to making a difference. Rather
than focusing on charity work, Mycoskie sought
to build an organization capable of sustainable,
repeated giving, where children would be guaranteed shoes throughout their childhood. He established Shoes for a Better Tomorrow, better known as
TOMS, as a for-profit company based on the premise of the “One for One” pledge. For every pair of
shoes TOMS sold, TOMS would donate a pair to a
child in need. By year-end 2013, TOMS had given
away over 10 million pairs of shoes in more than 40
different countries.1
As a relatively new and privately held company,
TOMS experienced consistent and rapid growth
despite the global recession that began in 2007. In
2013, TOMS had matured into an organization with
nearly 400 employees and $210 million in revenues.
TOMS shoes could be found in several major retail
stores, such as Nordstrom, Bloomingdale’s, and
Urban Outfitters. In addition to providing shoes for
underprivileged children, TOMS also expanded its
mission to include restoring vision to those with
curable sight-related illnesses by developing a
new line of eyewear products. Exhibit 1 illustrates
how quickly TOMS expanded in its first 8 years of
business.
COMPANY BACKGROUND
While attending Southern Methodist University,
Blake Mycoskie founded the first of his six startups, a
laundry service company that encompassed seven colleges and staffed over 40 employees.2 Four startups
and a short stint on The Amazing Race later, Mycoskie
found himself vacationing in Argentina, where he not
only learned about the Alpargata shoe originally used
by local peasants in the 14th century but also witnessed the extreme poverty in rural Argentina.
Determined to make a difference, Mycoskie
believed that providing shoes could more directly
impact the children in these rural communities than
delivering medicine or food. Aside from protecting children’s feet from infections, parasites, and
diseases, shoes were often required for a complete
school uniform. In addition, research had shown
that shoes were found to significantly increase children’s self-confidence, help them develop into more
active community members, and lead them to stay in
school. Thus, by ensuring access to shoes, Mycoskie
could effectively increase children’s access to education and foster community activism, raising the
overall standard of living for people living in poor
Argentinian rural areas.
Copyright © 2014 by M. Peteraf. All rights reserved.
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EXHIBIT 1
PART 2
Cases in Crafting and Executing Strategy
TOMS’s Growth in Sales
and Employees, 2006–2013
Year
Total Employees
2006
2007
2008
2009
2010
2011
2012
2013
4
19
33
46
72
250
320
400
Pairs of Shoes Sold
10,000
50,000
110,000
230,000
700,000
1,200,000
2,500,000
6,000,000
Source: PrivCo, “Private Company Financial Report: TOMS
Shoes, Inc.,” May 30, 2014.
Dedicated to his mission, Mycoskie purchased
250 pairs of Alpargatas and returned home to Los
Angeles, where he subsequently founded TOMS
Shoes. He built the company on the promise of “One
for One,” donating a pair of shoes for every pair sold.
With an initial investment of $300,000, Mycoskie’s
business concept of social entrepreneurship was
simple: Sell both the shoe and the story behind it.
Building on a simple slogan that effectively communicated his goal, Mycoskie championed his personal
experiences passionately and established deep and
lasting relationships with customers.
Operating from his apartment with three interns
he found through Craigslist, Mycoskie quickly sold
out his initial inventory and expanded considerably,
selling 10,000 pairs of shoes by the end of his first
year. With family and friends, Mycoskie ventured
back to Argentina, where they hand-delivered 10,000
pairs of shoes to children in need. Because he followed through on his mission statement, Mycoskie
was able to subsequently attract investors to support
his unique business model and expand his venture
significantly.
When TOMS was initially founded, it operated
as the for-profit financial arm while a separate entity
entitled “Friends of TOMS” focused on charity
work and giving. After 2011, operations at Friends
of TOMS were absorbed into TOMS’ own operations as TOMS itself matured. In Friends of TOMS’s
latest accessible 2011 501(c)(3) filing, assets were
reported at less than $130,000.3 Moreover, as of
May 2013, the Friends of TOMS website was
discontinued, while TOMS also ceased advertising
its partnership with Friends of TOMS in marketing
campaigns and on its corporate website. The developments suggested that Friends of TOMS became a
defunct entity as TOMS incorporated all of its operations under the overarching TOMS brand.
INDUSTRY BACKGROUND
Even though Mycoskie’s vision for his company was
a unique one, vying for a position in global footwear
manufacturing was a risky and difficult venture. The
industry was both stable and mature—one in which
large and small companies competed on the basis
of price, quality, and service. Competitive pressures
came from foreign as well as domestic companies,
and new entrants needed to fight for access to downstream retailers.
Further, the cost of supplies was forecast to
increase between 2013 and 2020. Materials and
wages constituted over 70 percent of industry costs—
clearly a sizable concern for competitors. Supply purchases included leather, rubber, plastic compounds,
foam, nylon, canvas, laces, and so on. While the price
of leather rose steadily each year, the price of rubber
also began to climb, at an average annual rate of 7.6
percent. Wages were expected to increase at a rate of
5.8 percent over a five-year period due to growing
awareness of how manufacturers took advantage of
cheap, outsourced labor.4
To thrive in the footwear manufacturing industry, firms needed to differentiate their products in a
meaningful way. Selling good-quality products at a
reasonable price was rarely enough; they needed to
target a niche market that desired a certain image.
Product innovation and advertising campaigns therefore became the most successful competitive weapons. For example, Clarks adopted a sophisticated
design, appealing to a wealthier, more mature customer base. Nike, adidas, and Skechers developed
athletic footwear and aggressively marketed their
brands to reflect that image. Achieving economies
of scale, increasing technical efficiency, and developing a cost-effective distribution system were also
essential elements for success.
Despite the presence of established incumbents,
global footwear manufacturing was an attractive
industry to potential entrants based on the prediction
of increased demand and therefore sales revenue.
Moreover, the industry offered incumbents one of
CASE 30
TOMS Shoes: A Dedication to Social Responsibility
of having a story today is what really separates companies. People don’t just wear our shoes, they tell our
story. That’s one of my favorite lessons that I learned
early on.
the highest profit margins in the fashion industry. But
because competitors were likely to open new locations and expand their brands in order to discourage
competition, new companies’ only option was to
attempt to undercut them on cost. Acquiring capital
equipment and machinery to manufacture footwear
on a large scale was expensive. Moreover, potential
entrants also needed to launch costly large-scale
marketing campaigns to promote brand awareness.
Thus, successful incumbents were traditionally able
to maintain an overwhelming portion of the market.
Moving forward, TOMS focused more on selling the story behind the shoe rather than depending
on product features or celebrity endorsements. Moreover, rather than relying on mainstream advertising,
TOMS emphasized a grassroots approach using social
media and word of mouth. With nearly 2 million Facebook “Likes” and over 2 million Twitter “Followers”
in 2013, TOMS’s social media presence eclipsed that
of its much larger rivals, Skechers and Clarks. Based
on 2013 data, TOMS had fewer Followers than Nike
and fewer Likes than both Nike and adidas. However,
TOMS had more Followers and Likes per dollar of
revenue. Therefore, taking company size into account,
TOMS also had a greater social media presence than
the industry’s leading competitors—see Exhibit 2.
TOMS’s success with social media advertising
can be attributed to the story crafted and championed by Mycoskie. Industry incumbents generally
dedicated a substantial portion of revenue and effort
to advertising since they were simply selling a product. TOMS, on the other hand, used its mission to
ask customers to buy into a cause, limiting its need
to devote resources to brand building. TOMS lets its
charitable work and social media presence generate
interest for the company organically. This strategy
also increased the likelihood that consumers would
make repeat purchases and share the story behind
their purchases with family and friends. TOMS’s
Building the TOMS Brand
Due to its humble beginnings, TOMS struggled to
gain a foothold in the footwear industry. While companies like Nike had utilized high-profile athletes
like Michael Jordan and Tiger Woods to establish
brand recognition, TOMS had relatively limited
financial resources and tried to appeal to a more
socially conscious consumer. Luckily, potential buyers enjoyed a rise in disposable income over time
as the economy recovered from the recession. As a
result, demand for high-quality footwear increased
for affluent shoppers, accompanied by a desire to act
(and be seen acting) charitably and responsibly.
While walking through the airport one day,
Mycoskie encountered a girl wearing TOMS shoes.
Mycoskie recounts:
I asked her about her shoes, and she went on to tell me
this amazing story about TOMS and the model that it
uses and my personal story. I realized the importance
EXHIBIT 2
TOMS’s Use of Social Media Compared to Select Footwear
Competitors, 2013
Facebook
2013 Revenue
(millions)
TOMS
Clarks
Skechers
adidas
Nike
Source: Author data.
C-425
$
210 (est.)
1,400
1,854
19,640
25,280
Twitter
Number of
Likes
Likes per
Million $ in
Revenue
Number of
Followers
Followers
per Million
$ in Revenue
2,215,283
241,355
1,200,911
16,340,675
18,020,656
7,384
172
648
832
713
2,173,377
22,184
18,005
961,065
3,138,584
7,245
16
10
49
124
PART 2
C-426
Cases in Crafting and Executing Strategy
customers took pride in supporting a grassroots
cause instead of a luxury-footwear supplier and
encouraged others to share in the rewarding act.
A BUSINESS MODEL
DEDICATED TO SOCIALLY
RESPONSIBLE BEHAVIOR
Traditionally, the content of advertisements for many
large apparel companies focused on the attractive
aspects of the featured products. TOMS’s advertising,
on the other hand, showcased its charitable contributions and the story of its founder, Blake Mycoskie.
While the CEOs of Nike, adidas, and Clarks rarely
appeared in their companies’ advertisements, TOMS
ran as many ads with its founder as it did without
EXHIBIT 3
him, emphasizing the inseparability of the TOMS
product from Mycoskie’s story. In all of his appearances, Mycoskie was dressed in casual and friendly
attire so that customers could easily relate to him
and his mission. This advertising method conveyed
a small-company feel and encouraged consumers
to connect personally with the TOMS brand. It also
worked to increase buyer patronage through differentiating the TOMS product from others. Consumers were convinced that every time they purchased a
pair of TOMS, they became instruments of the company’s charitable work. Exhibit 3 provides examples
of TOMS’s advertisements used in 2013.
The company’s social message fueled buyer
enthusiasm and led to repeat purchases by many customers. One reviewer commented, “This is my third
pair of TOMS and I absolutely love them! . . . I can’t
Examples of TOMS’s Advertisements
Source: www.toms.com.
CASE 30
TOMS Shoes: A Dedication to Social Responsibility
C-427
wait to buy more!”5 Another wrote, “Just got my 25th
pair! Love the color! They . . . are my all-time favorite
shoe for comfort, looks & durability. AND they are
for a great cause!! Gotta go pick out my next pair.”6
Virtually all consumer reports on TOMS shoes
shared similar themes. Though not cheap, TOMS
footwear was priced lower than rivals’ products, and
customers overwhelmingly agreed that the value
was worth the cost. Reviewers described TOMS as
comfortable, true to size, lightweight, and versatile
(“go with everything”). The shoes had “cute shapes
and patterns” and were made of canvas and rubber
that molded to customers’ feet with wear. Because
TOMS products were appealing and trendy yet also
basic and comfortable, they were immune to changing fashion trends and consistently attracted a variety of consumers.
In addition to offering a high-quality product
that people valued, TOMS was able to establish a
positive repertoire with its customers through efficient distribution. Maintaining an online shop helped
TOMS save money on retail locations and also
allowed it to serve a wide geographic range. Further,
the company negotiated with well-known retailers like Nordstrom and Neiman Marcus to assist in
distribution. Through thoughtful planning and structured coordination, TOMS limited its operation costs
and provided prompt service for its customers.
organization that spent almost $100 million in
2012 on providing health care for the poor (more
than TOMS’s total revenue that year), dispersed
thousands of shoes to schoolchildren in Rwanda and
Malawi while also screening them for malnutrition.
Cooperative giving further strengthened the TOMS
brand by association with well-known and highly
regarded Giving Partners. Complementary services
expanded the scope of TOMS’s mission, enhanced
the impact that each pair of TOMS had on a child’s
life, and increased the number of goodwill and business opportunities available to TOMS.
To ensure quality of service and adherence to its
fundamental mission, TOMS maintained five criteria for Giving Partners:7
Giving Partners
•
As it continued to grow, TOMS sought to improve its
operational efficiency by teaming up with “Giving
Partners,” nonprofit organizations that helped to distribute the shoes that TOMS donated. By teaming up
with Giving Partners, TOMS streamlined its charity operations by shifting many of its distributional
responsibilities to organizations that were often larger
and more resourceful and were able to distribute
TOMS shoes more efficiently. Moreover, these organizations possessed more familiarity and experience
in dealing with the communities that TOMS was
interested in helping and could therefore better allocate shoes that suited the needs of children in the area.
Giving Partners also provided feedback to help TOMS
improve upon its giving and distributional efforts.
Each Giving Partner also magnified the impact
of TOMS shoes by bundling their distribution with
other charity work that the organization specialized in. For example, Partners in Health, a nonprofit
• Repeat giving. Giving Partners must be able to
•
•
•
work with the same communities in multiyear
commitments, regularly providing shoes to the
same children as they grow.
High impact. Shoes must aid Giving Partners
with their existing goals in the areas of health and
education, providing children with opportunities
they would not have otherwise.
Consideration of local economy. Providing shoes
cannot have negative socioeconomic effects on
the communities where shoes are given.
Large-volume shipments. Giving Partners must
be able to accept large shipments of shoes.
Focus on health and education. Giving Partners
must give shoes only in conjunction with health
and education efforts.
As of 2013, TOMS had built relationships with over
75 Giving Partners, including Save the Children,
U.S. Fund for UNICEF, and IMA World Health.
To remain accountable to its mission in these joint
ventures, TOMS also performed unannounced audit
reports that ensured shoes were distributed according to the One for One model.
Building a Relationship
with Giving Partners
Having Giving Partners offered TOMS the valuable
opportunity to shift some of its philanthropic costs
onto other parties. However, TOMS also proactively maintained strong relationships with its Giving Partners. Kelly Gibson, the program director of
National Relief Charities (NRC), a Giving Partner
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Cases in Crafting and Executing Strategy
and nonprofit organization dedicated to improving
the lives of Native Americans, highlighted the respect
with which TOMS treated its Giving Partners:
TOMS treats their Giving Partners (like us) and the
recipients of their giveaway shoes (the Native kids
in this case) like customers. We had a terrific service
experience with TOMS. They were meticulous about
getting our shoe order just right. They also insist that
the children who receive shoes have a customer-type
experience at distributions.
From customizing Giving Partners’ orders to
helping pick up the tab for transportation and distribution, TOMS treated its Giving Partners as valuable customers and generated a sense of goodwill
that extended beyond its immediate One for One
mission. By ensuring that its Giving Partners and
recipients of shoes were treated respectfully, TOMS
developed a unique ability to sustain business relationships that other for-profit organizations more
concerned with the financial bottom line did not.
MAINTAINING A DEDICATION
TO CORPORATE SOCIAL
RESPONSIBILITY
Although TOMS manufactured its products in Argentina, China, and Ethiopia (countries that have all been
cited as areas with a high degree of child and forced
labor by the Bureau of International Labor Affairs),
regular third-party factory audits and a Supplier Code
of Conduct helped to ensure compliance with fair
labor standards.8 Audits were conducted on both an
announced and unannounced basis, and the Supplier
Code of Conduct was publicly posted in the local
language of every work site. The Supplier Code of
Conduct enforced standards such as minimum work
age, requirement of voluntary employment, nondiscrimination, maximum workweek hours, and right
to unionize. It also protected workers from physical,
sexual, verbal, or psychological harassment in accordance with a country’s legally mandated standards.
Workers were encouraged to report violations directly
to TOMS, and suppliers found in violation of TOMS’s
Supplier Code of Conduct faced termination.
In addition to ensuring that suppliers met TOMS’s
ethical standards, TOMS also emphasized its own
dedication to ethical behavior in a number of ways.
TOMS was a member of the American Apparel and
Footwear Association (AAFA) and was registered
with the Fair Labor Association (FLA). Internally,
TOMS educated its own employees on human trafficking and slavery prevention and partnered with
several organizations dedicated to raising awareness
about such issues, including Hand of Hope.9
Giving Trips
Aside from material shoe contributions, TOMS
also held a series of “Giving Trips” that supported
the broader notion of community service. Giving
Trips were firsthand opportunities for employees
of TOMS and selected TOMS’s customers to participate in the delivery of TOMS shoes. These trips
increased the transparency of TOMS’s philanthropic
efforts, further engaging customers and employees.
They generated greater social awareness as well,
since participants on these trips often became more
engaged in local community service efforts at home.
From a business standpoint, the Giving Trips
also represented a marketing success. First, a large
number of participants were customers and journalists unassociated with TOMS who circulated their
stories online through social media upon their return.
Second, TOMS was able to motivate participants and
candidates to become more involved in its mission
by increasing public awareness. In 2013, instead of
internally selecting customers to participate on the
Giving Trips, TOMS opted to hold an open voting
process that encouraged candidates to reach out to
their known contacts and ask them to vote for their
inclusion. This contest drew thousands of contestants
and likely hundreds of thousands of voters, although
the final vote tallies were not publicly released.
Environmental Sustainability
Dedicated to minimizing its environmental impact,
TOMS pursued a number of sustainable practices
that included offering vegan shoes, incorporating
recycled bottles into its products, and printing with
soy ink. TOMS also used a blend of organic canvas
and postconsumer recycled plastics to create shoes
that were both comfortable and durable. By utilizing
natural hemp and organic cotton, TOMS eliminated
pesticide and insecticide use that adversely affected
the environment.
In addition, TOMS supported several environmental organizations like Surfers Against Sewage, a
movement that raised awareness about excess sewage
CASE 30
TOMS Shoes: A Dedication to Social Responsibility
discharge in the United Kingdom. TOMS was a member of the Textile Exchange, an organization dedicated
to textile sustainability and protecting the environment. The company also participated actively in the
AAFA’s Environmental Responsibility Committee.
Creating the TOMS Workforce
When asked what makes a great employee, Mycoskie
blogged:
As TOMS has grown, we’ve continued to look for
these same traits in the interns and employees that we
hire. Are you passionate? Can you creatively solve
problems? Can you be resourceful without resources?
Do you have the compassion to serve others? You can
teach a new hire just about any skill . . . but you absolutely cannot inspire creativity and passion in someone
that doesn’t have it.10
The company’s emphasis on creativity and passion was part of the reason that TOMS relied so heavily on interns and new hires rather than experienced
workers. By hiring younger, more inexperienced
employees, TOMS was able to be more cost-effective
in terms of personnel. The company could also
recruit young and energetic individuals who were
more likely to think innovatively and out of the box.
These employees were placed in specialized teams
under the leadership of strong, experienced managerial talent. This human intellectual capital generated
a competitive advantage for the TOMS brand.
Together with these passionate individuals,
Mycoskie strove to create a familylike work atmosphere where openness and collaboration were celebrated. With his cubicle located in one of the most
highly trafficked areas of the office (right next to
customer service), Mycoskie made a point to interact with his employees on a daily basis, in all-staff
meetings, and through weekly personal e-mails while
traveling. Regarding his e-mails, Mycoskie reflected:
I’m a very open person, so I really tell the staff what
I’m struggling with and what I’m happy about. I tell
them what I think the future of TOMS is. I want them
to understand what I’m thinking. It’s like I’m writing
to a best friend.11
The notion of “family” was further solidified through
company dinners, ski trips, and book clubs through
which TOMS employees were encouraged to socialize in informal settings. These casual opportunities
to interact with colleagues created a “balanced”
C-429
work atmosphere where employees celebrated not
only their own successes but the successes of their
co-workers
Diversity and inclusion were also emphasized at
TOMS. For example, cultural traditions like the Chinese Lunar New Year were celebrated publicly on the
TOMS company blog. Moreover, as TOMS began
expanding and distributing globally, the company
increasingly sought to recruit a more diverse workforce by hiring multilingual individuals who were
familiar with TOMS’s diverse customer base and
could communicate with its giving communities.12
The emphasis that Mycoskie placed on each
individual employee was one of the key reasons why
employees at TOMS often felt “lucky” to be part of
the movement.13 Coupled with the fact that TOMS
employees knew their efforts fostered social justice, these “Agents of Change,” as they referred to
themselves, were generally quite satisfied with their
work, making TOMS Forbes’s 18th “Most Inspiring Company” in 2011. Overall, the culture allowed
TOMS to recruit and retain high-quality employees
invested in achieving its social mission.
FINANCIAL SUCCESS
AT TOMS
While TOMS remained a privately held company
with limited financial data, the estimated growth rate
of TOMS’s revenue was astounding. In the eight years
after his company’s inception, Mycoskie was able
to turn his initial $300,000 investment into a company with estimated 2013 revenues of $210 million.
Exhibit 4 presents the company’s estimated revenues
for 2006 through 2013. The exhibit also provides total
footwear industry revenues for 2006 through 2013.
The fact that TOMS was able to experience consistent growth despite financial turmoil post-2008
illustrates the strength of the One for One movement
to survive times of recession. Mycoskie attributed his
success during the recession to two factors: (1) As
consumers became more conscious of their spending during recessions, products like TOMS that gave
to others actually became more appealing (according to Mycoskie); (2) the giving model that TOMS
employed is not “priced in.” Rather than commit a
percentage of profits or revenues to charity, Mycoskie
noted that TOMS simply gave away a pair for every
pair it sold. This way, socially conscious consumers
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EXHIBIT 4
PART 2
Cases in Crafting and Executing Strategy
Estimated Annual Revenues for TOMS and the Footwear Industry,
2006–2013
TOMS
Year
Revenue (millions)
2006
2007
2008
2009
2010
2011
2012
2013
$ 0.2
1.2
3.1
8.4
26.2
43.5
97.5
210.0
Footwear Industry
Annual Growth Rate Revenue (millions)
—
457%
156
168
212
66
124
115
$ 74
87
94
98
100
106
108
117
Annual Growth Rate
12.4%
16.8
8.5
4.0
1.6
6.2
2.6
7.5
Source: PrivCo; and “Global Footwear Manufacturing,” IBISWorld, June 2, 2013, clients1.ibisworld.com/reports/gl/industry/
currentperformance.aspx?entid=500.
knew exactly where their money was going without
having to worry that TOMS would cut back on its
charity efforts in order to turn a profit.14
Production at TOMS
Although TOMS manufactured shoes in Argentina,
Ethiopia, and China, only shoes made in China
were brought to the retail market. Shoes made in
Argentina and Ethiopia were strictly used for donation purposes. TOMS retailed its basic Alpargata
shoes in the $50 price range, even though the cost
of producing each pair was estimated at around $9.15
Estimates for the costs of producing TOMS’s more
expensive lines of shoes were unknown, but they
retailed for more than $150.
In comparison, manufacturing the average pair of
Nike shoes in Indonesia cost around $20, and they were
priced around $70.16 Factoring in the giving aspect,
TOMS seemed to have a slightly smaller markup than
companies like Nike, yet it still maintained considerable profit margins. More detailed information on
trends in TOMS’s production costs and practices is
limited due to the private nature of the company.
The Future
Because demand and revenues were predicted to
increase in the global footwear manufacturing industry, incumbents like TOMS needed to find ways to
defend their position in the market. One method was
to continue to differentiate products based on quality, image, or price. Another strategy was to focus
on R&D and craft new brands and product lines that
appealed to different audiences. It was also recommended that companies investigate how to mitigate
the threat posed by an increase in supply costs.
In an effort to broaden its mission and product
offerings, TOMS began to expand both its consumer
base and charitable-giving product lines. For its customers, TOMS started offering stylish wedges, ballet flats, and even wedding apparel in an effort to
reach more customers and satisfy the special needs
of current ones. For the children it sought to help,
TOMS expanded past its basic, black canvas shoe
offerings to winter boots in order to help keep children’s feet dry and warm during the winter months
in cold-climate countries.
On another front, TOMS entered the eyewear
market in hopes of restoring vision to the 285 million blind or visually impaired individuals around
the world. For every pair of TOMS glasses sold,
TOMS restored vision to one individual either
through donating prescription glasses or offering
medical treatment for those suffering from cataracts and eye infections. TOMS recently focused
its vision-related efforts in Nepal and planned to
expand globally as the TOMS eyewear brand grew.
As of 2013, TOMS had teamed up with 15 Giving Partners to help restore sight to 150,000 individuals in 13 countries. A challenge for Blake
Mycoskie would be to remain focused on the company’s social mission while meeting the managerial demands of a high-growth international
company.
CASE 30
TOMS Shoes: A Dedication to Social Responsibility
C-431
ENDNOTES
1
Groden, Claire. “TOMS Hits 10 Million Mark
on Donated Shoes.” Time. 26 June 2013.
.
2
Mycoskie, Blake. Web log post.
The Huffington Post. 26 May 2013.
.
3
501c3Lookup. 2 June 2013.
.
4
“Global Footwear Manufacturing.”
IBISWorld. March 2014. .
5
Post by “Alexandria.” TOMS website.
2 June 2013. .
6
Post by “Donna Brock.” TOMS website. 13
January 2014. .
7
TOMS website. 2 June 2013. .
8
“Trafficking Victims Protection Reauthorization Act.” U.S. Department of Labor.
2 June 2013. . TOMS website. 2 June 2013. .
9
Hand of Hope. “Teaming Up with TOMS
Shoes.” Joyce Meyer Ministries. 2 June 2013.
.
10
Mycoskie, Blake. “Blake Mycoskie’s Blog.”
Blogspot. 2 June 2013. .
11
Schweitzer, Tamara. “The Way I Work: Blake
Mycoskie of TOMS Shoes.” Inc. 2 June 2013.
.
12
TOMS Jobs website. 2 June 2013.
.
13
Daniela. “Together We Travel.”
TOMS Company Blog. 3 June 2013.
.
14
Zimmerman, Mike. “The Business of Giving:
TOMS Shoes.” Success. 2 June 2013.
.
15
Fortune, Brittney. “TOMS Shoes: Popular
Model with Drawbacks.” The Falcon. 2 June
2013. .
16
Behind the Swoosh. Dir. Keady, Jim.
1995. Film.
TOMS Shoes: A Dedication to Social Responsibility
Spring 2017: ADMN 703.01, 703.02, 703.08
Top executives at TOMS Shoes, having heard of your growing prowess in strategic
thinking and analysis, have decided to recruit you as a consultant to assess the company’s
social responsibility strategy platform and its use and effectiveness in fulfilling TOMS’
corporate strategy and objectives. They have asked you to prepare a 3-5 page report,
together with a maximum of two pages of exhibits, for the senior executives.
Key Questions to consider for the Executive Summary and Class Discussion
1. What are the key elements of TOMS’ corporate social responsibility strategy?
2. In what ways does TOMS exercise its commitment to corporate social
responsibility? Are you impressed?
3. What are TOMS’ strengths, weaknesses, opportunities, threats? What are the most
important of each and why?
4. What is your assessment of TOMS’ competitive strengths in the footwear
industry? Is it unique and enduring? Why or why not?
5. How does TOMS’ dedication to corporate social responsibility contribute to its
competitive advantage? Is it effective short and long term? What is the greatest
risk to the endurance of its competitive advantage?
6. What issues do you see coming from TOMS’ critics and the overall strategic
platform?
7. What improvements do you suggest to reinforce, modify or enhance TOMS’s
business model? Why?
8. What set of action recommendations do you believe to be critical to deal with the
strategic issues and to strengthen its social responsibility strategy?
MOST CRITICAL PART TO CONCLUDE YOUR ESSAY
Clearly identify next steps (actions) to address TOMS’ vulnerabilities short,
intermediate and long term.
Make sure that the recommendations deal with the most important issues and are
listed in priority order.
Use Chapter 9 as the basis for your analysis and recommendation and clearly
incorporate the concepts in your analysis and recommendations.
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