Case Study 6 Completed
Discussion
Cultural/Social Concepts/Norms Influencing a Potential Buyer to Purchase TOMS Products and Impacts of Identified concept/Norms on TOM’s Growth
A trip to Argentina had a significant influence on TOMS’s founder because it stimulated his entrepreneurial journey. In 2006, he founded the company with a firm conviction that he could make a significant mark on people’s lives, mainly the deprived. While in Argentina, Blake witnessed poverty first-hand and saw the need to serve the people. He watched children walk to school barefooted and thought he could help them to lead better lives. For him, children in most of the third-world countries experience monumental challenges, some of which can be addressed to ease suffering. According to Thompson et al. (2018), an organization that is built on an excellent strategy is one that minds its people, structure, and capacities. In his attempts to influence buyers and convince them to purchase his products, Blake started to use celebrities to create a brand and source of motivation. With these celebrities, he also began telling the story of why he had created the organization. In particular, he developed the company based on the premise of donating a pair of shoes for each sold pair. According to Thompson et al. (2018), the most significant impact on the organization’s growth was helping those in need. Often, with its efforts, the firm used most of its profits to help the underprivileged. Thompson et al. (2018) argued that a separate entity played a significant part in impacting TOMS’s growth as it focused on charity and related works. They argue that this entity had reported its assets of over $100, 000, nearly a decade ago. By and large, TOMS and its associated charity entity, commonly known as Friends for TOMS, have, over the years, pursued a corporate social responsibility (CSR) agenda.
Part of this organization’s actions to support people includes its philanthropist works, participation in societal service, and unprecedented efforts to better the lives of individuals across the globe. With this worthy cause, the company and its founder have strived to create an environment where everyone is valued and respected, and therefore, placing the people component as its fundamental building block. As for Eckhardt and Dobscha (2019), the most successful firms in the world are those with the highest purposes. They argue that having a much deeper and a divine purpose is significantly revitalizing for all stakeholders, including workers, suppliers, society, as well as customers. They submit that an organization is as prominent as having a deeper cause. They argue that TOMS represents one of such firms. With a mission of enhancing life, they say that TOMS adopted an excellent business model. Besides, they believe that firms such as TOMS often depend on customers in attempts to make moral decisions in their marketplaces. In essence, at the cornerstone of TOMS’ growth and success was its ‘One-for-One’ model, with the assumption that buyers would act responsibly to support its corporate works.
If Most Businesses can Successfully Leverage the same Cultural/Social Concepts or Norms that TOMS used
Under TOMS’ business model, a pair of shoes is always donated for every pair purchased. The premise of the firm’s architect is a unique one because it supports the needy in society while bettering lives around the globe. With its simple model, TOMS has managed to donate over a million pairs of shoes to the needy since its inception in nearly twenty countries. While the rise of this organization has inspired other firms, which have adopted a similar philosophy, following its route would require losing a significant amount of revenues. In other words, in attempts for other firms to effectively leverage the TOMS’ model, they must be willing to use more finances to make profits. This model has, over time, been fruitfully used in selling several other products, including books. While firms such as Nike have had to struggle with backlash from customers due to issues of human rights violations, TOMS has successfully applied its social initiative. As a significant source of publicity, other firms such as Disney and Nordstrom have reported successes using the same model.
Citibank, a financial institution that operates mostly in America, is a clear testament of how leveraging TOMS’s philosophy can bring success. For years, this bank has helped youths across the United States with work opportunities. It has also helped across the nation to build as well as to attain their dreams. For instance, in 2018, the bank’s foundation gave nearly $78 million in grants to people, helping to increase financial inclusion, job promotion, and enabling youths to become financially independent (Citigroup, 2019). This bank also has several volunteers who are at the forefront, pushing for its philanthropic efforts each day.
Reviewing TOMS Codes and CSR to determine how they affect Suppliers
For many years, this firm has pursued ethical actions. It has always strived to ensure that it has left a positive mark in everything it does. With its CSR, this company has ensured that it works as required and according to set industry standards. In other words, it has sought to operate in ethical ways while protecting the environment and people surrounding it. In the United States, employment laws remain clear, and any violations have severe repercussions. For instance, it is unlawful to engage in slavery and child abuse. The organization’s supplier code of conduct also outlines several requirements. For example, voluntary employment is listed as optional for any supplier wishing to partner with TOMS. All suppliers are also required to resist from using any form of forced labor, including slavery and child abuse. As such, it means that suppliers can only engage adults and employ people legally mandated workers. Besides, suppliers should not force people to work for them. Moreover, the company also requires all of its suppliers to hire individuals who are sixteen years and above (TOMS, 2019). Apart from the United States laws and policies, the company also respects other employment laws across the world, often urging its associates to abide and implement each country’s policy requirements.
However, these codes impact suppliers’ ability to utilize cheap labor. For TOMS, these requirements work for its success because it builds trust with its partners. By discouraging child abuse and forced labor, the firm is enforcing different countries’ laws. Furthermore, part of being socially responsible is protecting societies and the environment. By and large, TOMs has been at the forefront, often championing for healthier living through ecological conservation. Thus, the firm requires its suppliers to abide by all environmental rules in the zones it operates (TOMS, 2019). It also calls its suppliers to take extra safety measures in maintaining their duties and reduce carbon emissions to the environment (TOMS, 2019). Suppliers who fail to comply with these rules and other applicable regulations risk losing TOMS partnerships and contracts.
Meaning of Sustainability and Practices of TOMS that are consistent with sustainability
Often, the term ‘sustainability’ is used synonymously with CSR. According to YouMatter (2020), there are several definitions of this term. It defines the term as the process of maintaining something at a certain level. When used within the context of the environment, it often denotes the efforts and processes through which people avoid exploiting natural resources and polluting the environment. These efforts, by a larger degree, help to maintain an ecological balance, to ensure that the quality of life is never affected. Technological advancements, wealth creation, and resource use can be terms sustainable if they fail to hurt the environment and many of its ecosystem services. Thus, sustainability is comprised of three things, including the society, economy, as well as ecology. At TOMS, highly thriving humanity is a flourishing planet.
Over the years, TOMS ensured unrelenting commitments in protecting the environment. The company has also made several efforts to expand its sustainable practices. For TOMS, these practices mean meeting the needs of the environment, people, and society without compromising the ability of future generations. Some of how this company fosters sustainability is offering vegan shoes. In particular, the company uses environmentally friendly materials as well as resources when making its products. For instance, it uses recycled plastics to make its vegan shoes. TOMS has also maintained low carbon emissions to the environment and always sought to use alternative energy sources.
Evaluation of Slogan Encapsulated in the Company’s Vision and Corporate Commitment
The company’s founder has remained steadfast and lived to his words. The company has continued to deliver on its promise and has always given a pair of shoes to a needy person for each pair sold. Even though he went off-track at some point, he would later realize the need to continue serving his early commitments. Initially, he had founded the company on a simple and compelling premise – helping the less fortunate in society by donating a pair of shoes. It is this particular philosophy that has made the company successful and renowned. On several occasions, TOMs has fulfilled its mission and surpassed the expectations of its stakeholders. In essence, through its founder, the company has sold continuously its promise that every purchase will directly benefit a needy child. Over the last five years, the company has also expanded its show offering to include winter shoes to help children to stay warm and dry, mainly in cold areas around the world. The founder’s vision has also grown since the firm’s inception in 2006, adding more products and services to his collections. For instance, the firm has also ventured outside its main business line to include eyewear. He hopes to help over 200 million with visual challenges in the glove, restoring optimisms and improving health. As of 2016, the company had teamed up with nearly fifteen partners to help about 360,000 people in thirteen nations around the world.
Yum! Brands (Restaurants)
This company has built a global and iconic brand that has commanded trust from people around the globe. Based in America, this company has more than 50,000 restaurants in over 100 countries. Some of its restaurants operate under different brands, including Hut, Pizza, as well as KFC. It is also known as a global leader in selling products such as chicken, tea, and many other food categories (Yum, 2020). In 2019, this company was listed as a leading sustainability firms in America. It also has one of the best CSR, with its sustainability efforts stretching to most of the countries in which it operates. It has also built a CSR in attempts to avoid generating negative effects to the environment and people. Besides, it also seeks to perverse water resources, become more energy efficient, and participate in different sustainability efforts. It has equally sought to reduce carbon emissions through its environmental footprint, producing yearly savings of nearly 1.2 million U.S dollars. Moreover, it also recycles some of its products to reduce environmental pollution and related effects.
References
Citigroup. (2019). Global Citizenship. Retrieved from https://www.citigroup.com/citi/about/citizenship/citizenship-approach.html
Eckhardt, G. M., & Dobscha, S. (2019). The consumer experience of responsibilization: the case of Panera Cares. Journal of Business Ethics, 159(3), 651-663.
YouMatter. (2020). Sustainability – What Is It? Definition, Principles And Examples. Youmatter. Retrieved 3 June 2020, from https://youmatter.world/en/definition/definitions-sustainability-definition-examples-principles/.
Thompson, A. A., Peteraf, M., Gamble, J., & Strickland, A. (2018). Crafting and executing strategy: The quest for competitive advantage: Concepts and cases. New York, NY: McGraw-Hill Education.
TOMS. (2019). TOMS Supplier Code of Conduct. Retrieved from https://devel.toms.com/static/www/pdf/TOMS_Supplier_Code_of_Conduct.pdf
Yum.com. (2020). Company. Yum.com. Retrieved 3 June 2020, from https://www.yum.com/wps/portal/yumbrands/Yumbrands/company.