Soles for Souls; Ethics and Philanthropic Capitalism

One for One. Give Back. Do More. These are a few of the mantras which define TOM’s Shoes. After all, the company’s very name, TOMS, is short for a better TOMorrow. Using the power of individuals to benefit the greater good is what TOMS is all about. For every pair purchased by a customer, TOMS will give a pair of new shoes to a child in need. It has given away over one million pairs of shoes in the US and 24 other countries to help children who are the most at risk for foot-borne illnesses. The company’s ‘One for One’ business model can be described as ‘philanthropic capitalism’. But does it have any pitfalls?

Tom’s is a shoe retail for-profit company with headquarters located in Santa Monica, CA. According to the company’s corporate website, TOMS’ founder Blake Mycoskie was inspired when he took a personal trip to Argentina to learn to play polo and noticed children walking without shoes and living in an environment of extreme poverty and poor health conditions. He learned that many schools in developing countries require students to wear shoes, as they are seen as a primary defense against soil based infections and diseases. It was clear that children without shoes also meant no immediate access to a formal education. The company’s mission took shape and Mycoskie decided he wanted to supply a simple shoe to children in need. The business model was established with the primary goal of showing that we can create a better tomorrow by simply taking compassionate action today.

As Byron (2006) writes, the four level social responsibility model “relates to the economic, legal, ethical, and discretionary or philanthropic categories of a firm’s behavior” (p.135). Byron also states that the first level is the foundation on which the other levels exist. Unless a business is economically viable, it will not have the opportunity to be socially responsible. Mycoskie wanted to do more than simply set up a charity or non-profit that would provide a...