HISTORY & PRODUCTS
TOMS was established in 2006 by entrepreneur Blak Mycoskie. Mycoskie developed a philanthropy-integrated One for One business model; for every piece of merchandise purchased a product is issued to someone who is suffering with impoverish circumstances. The company is a for-profit with a subsidiary non-profit aspect which is called Friends of TOMS.
In 2006 while on vacation, Mycoskie learned that Argentine children are growing up without shoes which happens not to be a necessity but a monetary hardship. As in most countries, children cannot attend school if they are not wearing shoes. TOMS’ first product was designed and inspired by the Argentine espadrille shoe but now feature many different styles. Currently TOMS’ products consist of shoes, eyewear, and the newest addition coffee.
According to the TOMS’ website, TOMS has “provided over 10 million pairs of shoes to children since 2006, and TOMS’ Eyewear has restored sight to over 175,000 since
launching in 2011. In 2014, TOMS Roasting Company was founded with the mission to provide clean water to developing communities with the purchase of premium coffee”. TOMS will open a few coffee shops and we will be able to purchase beans from Whole Foods grocery chains.
GEOGRAPHICAL LOCATIONS
TOMS’ headquarters/corporate office is based out of Santa Monica, California. Their products are manufactured in China, Argentina, Kenya and Ethiopia. Shoes are made from “natural hemp, organic cotton, and/or recycled polyester and these materials are used on the upper, liner and/or the insole covers” as stated on TOMS’ website, on the corporate responsibility page. Also, their “shoe boxes are made from 80% recycled post-consumer waste and are printed with soy ink.” TOMS products are sold nationally and
internationally. They practice their One for One giving to over sixty countries.
TOMS was established in 2006 by entrepreneur Blak Mycoskie. Mycoskie developed a philanthropy-integrated One for One business model; for every piece of merchandise purchased a product is issued to someone who is suffering with impoverish circumstances. The company is a for-profit with a subsidiary non-profit aspect which is called Friends of TOMS.
In 2006 while on vacation, Mycoskie learned that Argentine children are growing up without shoes which happens not to be a necessity but a monetary hardship. As in most countries, children cannot attend school if they are not wearing shoes. TOMS’ first product was designed and inspired by the Argentine espadrille shoe but now feature many different styles. Currently TOMS’ products consist of shoes, eyewear, and the newest addition coffee.
According to the TOMS’ website, TOMS has “provided over 10 million pairs of shoes to children since 2006, and TOMS’ Eyewear has restored sight to over 175,000 since
launching in 2011. In 2014, TOMS Roasting Company was founded with the mission to provide clean water to developing communities with the purchase of premium coffee”. TOMS will open a few coffee shops and we will be able to purchase beans from Whole Foods grocery chains.
GEOGRAPHICAL LOCATIONS
TOMS’ headquarters/corporate office is based out of Santa Monica, California. Their products are manufactured in China, Argentina, Kenya and Ethiopia. Shoes are made from “natural hemp, organic cotton, and/or recycled polyester and these materials are used on the upper, liner and/or the insole covers” as stated on TOMS’ website, on the corporate responsibility page. Also, their “shoe boxes are made from 80% recycled post-consumer waste and are printed with soy ink.” TOMS products are sold nationally and
internationally. They practice their One for One giving to over sixty countries.
CULTURE
TOMS is definitely unique in nature but its culture page on their website provides an insight of what oil the company’s creative engine, the employees. The cultures webpage header states “Here at TOMS HQ, we are surrounded by people driven to be the change, both on their TOMS projects and beyond.” The webpage is a venue for the public to visualize the company’s employees and what they stand for as a whole organization. The page shows a variety of topics, from music interest to suggested health improvement applications and even employee holiday traditions.
My interpretation of the culture webpage is a great recruiting tool. TOMS looks like a great place to work. It seems individuality is encouraged and the driving force of “One for One” rings true down to the employees. Through the culture webpage, I believe the TOMS employees have confidence in in their company.
LAWRENCE KOHLBERG’S STAGE OF ETHICAL REASONING
Of Lawrence Kohlberg’s Stages of Ethical Reasoning I believe TOMS is in stage five, Social Contract Legalistic Orientation. Stage five is “a person is focused on individual rights and the development of standards based on critical examination…right or wrong because it has withstood scrutiny by the society in which the principle was accepted.” Since the company is relativity young it has experienced a huge growth spurt and has experienced scrutiny from the public such as manufacturing.
Most of the public supports the One for One concept but not at the expense of those who are need for the products. Thus far, this is the only conflict of interest I could find. According the Tiny Spark website, article “TOMS Shoes Listen to Critics”states “Until now, TOMS shoes have been manufactured in China, Argentina, Kenya and Ethiopia and exported to impoverished places” but starting this year, 2014, TOMS will manufacture some of its shoes in Haiti. This will provide employment opportunities and establish a new shoe industry in Haiti. Also, the article states the by the end of 2015 TOMS will be manufacture “one-third of all its giving shoes in places where its shoes are given” in turn solidifying TOMS pledge to job creation across the globe.
CODE OF ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
Code of Ethics and Corporate Social Responsibility are embedded on TOMS website, on the corporate responsibility page. The first sentence of the webpage states “At TOMS, we believe we can improve people’s lives through business”. The extensive section touch base on multiple topics with supporting documentation and links to their giving report,
combat human trafficking and slavery efforts, giving Story, American Apparel and Footwear Association membership, Textile Exchange membership, and their supplier
code of conduct regulations.
For an example, the supplier code of conduct states “we expect that the suppliers who manufacture our products will conduct their business in a manner consistent with the unique values and spirit of our company. We have provided this Supplier Code of Conduct (this “Code”) to clearly articulate specifc minimum standards for those suppliers who manufacture our products”. The code provides previsions on work age, wages, hours and overtime, environmental impact, etc.
I believe TOMS has both an ethical and altruistic corporate social responsibility. TOMS intention is clearly expressed throughout the organization, the company demonstrates financial and legal responsibility. When developing a product TOMS doesn’t consult the stakeholders for what may benefit the company, they take a philanthropic approach of how the product benefits society.
MARKETING& HUMAN RECOURCES
Marketing is vital for TOMS but their marketing is limited to the traditional advertisements. There are not many commercials but TOMS shoes are extremely popular with the younger generation. Once the message of One for One was received by the younger generations TOMS did not have to pursue in additional marketing in America. TOMS’ has a loyal following, because the cause is so noble, essentially the shoes are their walking advertisement (I owe three pairs).
Unfortunately, after researching TOMS I could not find information pertaining to the human resources department or a triple bottom line. Although I do not have information, I believe human resources are protected from the public because the department is the conscience and backbone of the company.
TRIPLE BOTTOM LINE
Triple bottom line is when a company takes their corporate social responsibility serious they will include social, environmental and revenue in their annual reports. TOMS is a for-profit organization but is not publicly traded company. I was unable to find any information if they exercise the triple bottom line.
EVOLUTION
TOMS existence is less than ten years old so I would consider the company to be still evolving, at a fast pace. TOMS was established because Mycoskie had a vision to help the world’s poverty afflicted children’s health by supplying them with shoes. In a Forbes article, Founder Blake Mycoske On The Inspiration Behind TOMS, Mycoske states his
driving force; “Most people look at problems in the third world and one word comes to mind: charity. But for me the word entrepreneurship came to mind.”
As the company evolves so do the products. The newest product introduced is TOMS coffee."Mycoskie plans to enter a new product category under the TOMS name every
year, always with a "one-for-one" model”, stated Fortune article, Can TOMS Break into the Coffee Business? Although every product may not succeed, the idea is powerful to the world. TOMS provides a charitable opportunity for everyone to experience.
CORPORATE GOVERNANCE
Since TOMS has yet gone public, I couldn’t find evidence of corporate governance or a board of directors. The company is led by the founder and CEO, Mycoskie. Although there is no evidence of a board of directors, support can be seen through social media and on the feet of loyal customers. Mycoskie is careful to protect the image of TOMS and only make connections with other companies that are authentic to their purpose.
Works Cited
"Founder Blake Mycoskie on the Inspiration behind TOMS."Forbes. Forbes, n.d. Web. 24 Apr. 2014.
< http://www.forbes.com/sites/quora/2014/02/04/founder-blake-mycoskie-on-the-inspiration-behind-toms/>.
Roberts, Daniel. "Can TOMS break into the coffee business?" Fortune. Cable News Network. A Time Warner Company, 11 Mar. 2014. Web. 24 Apr. 2014.
< http://www.forbes.com/sites/quora/2014/02/04/founder-blake-mycoskie-on-the-inspiration-behind-toms/>.
TOMS. Toms shoes, n.d. Web. 24 Apr. 2014.< http://www.toms.com/>.
"TOMS Shoes Listens to its Critics." Tiny Sparks. Wordpress, n.d. Web. 24 Apr. 2014. <http://www.tinyspark.org/blog/critics/>.
TOMS is definitely unique in nature but its culture page on their website provides an insight of what oil the company’s creative engine, the employees. The cultures webpage header states “Here at TOMS HQ, we are surrounded by people driven to be the change, both on their TOMS projects and beyond.” The webpage is a venue for the public to visualize the company’s employees and what they stand for as a whole organization. The page shows a variety of topics, from music interest to suggested health improvement applications and even employee holiday traditions.
My interpretation of the culture webpage is a great recruiting tool. TOMS looks like a great place to work. It seems individuality is encouraged and the driving force of “One for One” rings true down to the employees. Through the culture webpage, I believe the TOMS employees have confidence in in their company.
LAWRENCE KOHLBERG’S STAGE OF ETHICAL REASONING
Of Lawrence Kohlberg’s Stages of Ethical Reasoning I believe TOMS is in stage five, Social Contract Legalistic Orientation. Stage five is “a person is focused on individual rights and the development of standards based on critical examination…right or wrong because it has withstood scrutiny by the society in which the principle was accepted.” Since the company is relativity young it has experienced a huge growth spurt and has experienced scrutiny from the public such as manufacturing.
Most of the public supports the One for One concept but not at the expense of those who are need for the products. Thus far, this is the only conflict of interest I could find. According the Tiny Spark website, article “TOMS Shoes Listen to Critics”states “Until now, TOMS shoes have been manufactured in China, Argentina, Kenya and Ethiopia and exported to impoverished places” but starting this year, 2014, TOMS will manufacture some of its shoes in Haiti. This will provide employment opportunities and establish a new shoe industry in Haiti. Also, the article states the by the end of 2015 TOMS will be manufacture “one-third of all its giving shoes in places where its shoes are given” in turn solidifying TOMS pledge to job creation across the globe.
CODE OF ETHICS AND CORPORATE SOCIAL RESPONSIBILITY
Code of Ethics and Corporate Social Responsibility are embedded on TOMS website, on the corporate responsibility page. The first sentence of the webpage states “At TOMS, we believe we can improve people’s lives through business”. The extensive section touch base on multiple topics with supporting documentation and links to their giving report,
combat human trafficking and slavery efforts, giving Story, American Apparel and Footwear Association membership, Textile Exchange membership, and their supplier
code of conduct regulations.
For an example, the supplier code of conduct states “we expect that the suppliers who manufacture our products will conduct their business in a manner consistent with the unique values and spirit of our company. We have provided this Supplier Code of Conduct (this “Code”) to clearly articulate specifc minimum standards for those suppliers who manufacture our products”. The code provides previsions on work age, wages, hours and overtime, environmental impact, etc.
I believe TOMS has both an ethical and altruistic corporate social responsibility. TOMS intention is clearly expressed throughout the organization, the company demonstrates financial and legal responsibility. When developing a product TOMS doesn’t consult the stakeholders for what may benefit the company, they take a philanthropic approach of how the product benefits society.
MARKETING& HUMAN RECOURCES
Marketing is vital for TOMS but their marketing is limited to the traditional advertisements. There are not many commercials but TOMS shoes are extremely popular with the younger generation. Once the message of One for One was received by the younger generations TOMS did not have to pursue in additional marketing in America. TOMS’ has a loyal following, because the cause is so noble, essentially the shoes are their walking advertisement (I owe three pairs).
Unfortunately, after researching TOMS I could not find information pertaining to the human resources department or a triple bottom line. Although I do not have information, I believe human resources are protected from the public because the department is the conscience and backbone of the company.
TRIPLE BOTTOM LINE
Triple bottom line is when a company takes their corporate social responsibility serious they will include social, environmental and revenue in their annual reports. TOMS is a for-profit organization but is not publicly traded company. I was unable to find any information if they exercise the triple bottom line.
EVOLUTION
TOMS existence is less than ten years old so I would consider the company to be still evolving, at a fast pace. TOMS was established because Mycoskie had a vision to help the world’s poverty afflicted children’s health by supplying them with shoes. In a Forbes article, Founder Blake Mycoske On The Inspiration Behind TOMS, Mycoske states his
driving force; “Most people look at problems in the third world and one word comes to mind: charity. But for me the word entrepreneurship came to mind.”
As the company evolves so do the products. The newest product introduced is TOMS coffee."Mycoskie plans to enter a new product category under the TOMS name every
year, always with a "one-for-one" model”, stated Fortune article, Can TOMS Break into the Coffee Business? Although every product may not succeed, the idea is powerful to the world. TOMS provides a charitable opportunity for everyone to experience.
CORPORATE GOVERNANCE
Since TOMS has yet gone public, I couldn’t find evidence of corporate governance or a board of directors. The company is led by the founder and CEO, Mycoskie. Although there is no evidence of a board of directors, support can be seen through social media and on the feet of loyal customers. Mycoskie is careful to protect the image of TOMS and only make connections with other companies that are authentic to their purpose.
Works Cited
"Founder Blake Mycoskie on the Inspiration behind TOMS."Forbes. Forbes, n.d. Web. 24 Apr. 2014.
< http://www.forbes.com/sites/quora/2014/02/04/founder-blake-mycoskie-on-the-inspiration-behind-toms/>.
Roberts, Daniel. "Can TOMS break into the coffee business?" Fortune. Cable News Network. A Time Warner Company, 11 Mar. 2014. Web. 24 Apr. 2014.
< http://www.forbes.com/sites/quora/2014/02/04/founder-blake-mycoskie-on-the-inspiration-behind-toms/>.
TOMS. Toms shoes, n.d. Web. 24 Apr. 2014.< http://www.toms.com/>.
"TOMS Shoes Listens to its Critics." Tiny Sparks. Wordpress, n.d. Web. 24 Apr. 2014. <http://www.tinyspark.org/blog/critics/>.