A Different Business Model

Yesterday was about corporate greed. Today is about something completely different. Toms Shoes is based in Santa Monica, California and was founded in 2006 by Blake Mycoskie. The company designs and sells shoes based on apargata design from Argentina. They also sell eyeware. When Toms sells a pair of shoes a pair of shoes is given to an impoverished child. When Toms sells eyeware a portion of the profits is used to save or restore eyesight for someone in a developing country.

Why Shoes?
Shoes help protect children's feet from cuts, infection and disease. Healthy children are more likely to attend school. Some schools require shoes and providing them and uniforms to those who cannot afford them has increased school attendance. Education is the key to breaking the cycle of poverty. Having shoes also gives the children confidence.

How does it work?
When a consumer buys a pair of shoes Toms gets with one of its giving partners to distribute the same number as the customers buy. Toms works with the giving partners to provide the correct sizes,quantities and types of shoes needed. The shoes are delivered to the giving partners who literally put them on the childrens feet. Toms pays all the expenses to transport and deliver the shoes to the recipients. The results are reviewed to determine the impact and changes are made to constantly improve the effectiveness of the program. The shoes distributed are a black canvas unisex slip on, a colorful canvas shoe and where appropriate winter boots. Shoes and boots are currently distributed in 60 countries and more than 1,000,000 pairs have been distributed.

Sight program.

Why sight?
Worldwide 285 million individuals are blind or visually impaired. In 80% of those cases the problem can be corrected or prevented with eye care. Cataracts are the leading cause of blindness but can be cured with a 15 minute surgery. When sight is restored people can return to work and be productive members of their community.

What Toms gives. One pair of Toms glasses equals sight for one person. Prescription glasses, eye surgery or medical treatment. Toms works with the Seva Foundation to support long term sustainable eye carein 13 countries including the United States.

Criticisms of Toms buy one get one model. Some have charged that Toms model is designed to make consumers feel good rather than address the underlying causes of poverty. Tom's founder Blake Mycoskie responded in 2013 with the following. "If you really are serious about poverty alleviation, our critics said, then you need to create jobs. At first I took that personally, but then I realized that they were right... using our model to create jobs is the next level. The company plans to have one third of all its shoes produced in countries that are receiving aid by 2015.

So maybe it isn't all about how much money is made by stockholders and CEO's. There is another way of doing business. Perhaps we should look to companies like Toms and buy from them in an attempt to change the world one pair of shoes at a time.