6 Why Shoes?Risk for children without shoes• Soil-transmitted diseases, penetrating the skin through bare feet• Preventing feet from getting cuts and sores. Not only injuries painful, but wounds becoming infected.• Can't attend school barefootshoes required part of their uniform
8 Creating a business Shoes factory in USA Humanitarian mission Made out of organic canvas and recycled plasticLightweight and environmentally friendlyHumanitarian missionStrict fair-labor, fair trade practices36 employees and 30 interns working in its home office with TOMS conceptFalling in love with TOMS concept
9 Creating a business Customers and volunteers TOMS activity Involving TOMS activityKeeping message aliveTOMS activity15 volunteers visiting different countries/areas for Shoe Drop per 2 weeksCo-operating with departments and other retailersShowing one for one movementOe
10 Challenge of mixing philanthropy and profit Not reaching profitability in fall, 2008Trouble in keeping up with a large retailer’s demandTire of its shoes, no matter what concept you haveDesigning new style shoes(wrap boot for woman), consistent with its mission
11 Challenge of mixing philanthropy and profit Taking a toll on the bottom lineBuying TOMS’s shoes because of one for one movement (philanthropy)Mycoskie admitsTOMS will probably never be really profitable
12 question 1Based on what you know about TOMS, from the feature and company’s Web site, what ethical and legal issues, other than those that all firms grapple with, should TOMS be particularly attentive to? How can TOMS avoid ethical and / or legal mishaps in this area?
13 Answer 1 Patent Humanitarian mission Hiring folks from Nike, Asics, Tommy Bahama for making good shoesAvoiding patent of Nike, Asics and Tommy BahamaHumanitarian missionStrict fair-labor, fair trade practicesPromoting living wage for workerNo child laborFood price meet the minimumUsing recycled plastic – including hazardous substance (ROHS in 2006)Routine check to avoid possible ethical and legal mishapChecked by 3rd partyWhat are fair trade practices? Fair trade boils down to promoting sustainable, fair price trading at all levels of business. Most efforts focus on individual or small group producers in third world countries. The practices of fair trade involve promoting living wages for workers in their local communities. In agricultural communities, food prices must meet a minimum regardless of what the rest of the world pays. The minimum insures that local farmers have the ability to make a decent living. Practices also look at the type of labour. Forced labour is not allowed and neither is exploitive child labour
14 question 2If TOMS initiated an ethics training program, which issues do you think it would focus on the most?AnswerHumanitarian missionStrict fair-labor, fair trade practicesPromoting living wage for workerNo child laborProtect environmentNo pollution to water, air and waste material handling
15 question 3Do you think customers are willing to pay more for a product when they know that a portion of their purchase price will go to good cause? If so, how important is this sentiment to TOMS? How effectively does TOMS communicate its mission and socially conscious principle to its customers?
16 Answer 3 Yes Spreading TOMS concept via mediums Youtube, facebook, mySpaceCustomers and volunteersInvolving TOMS activity15 volunteers visiting different countries/areas for Shoe Drop per 2 weeksKeeping message aliveCo-operating with departments and other retailersShowing one for one movement
17 question 4What forms of business organization would be appropriate for TOMS? Explain your answer?AnswerSetting up a non-profit organization connecting to TOMS (for-profit)TOMS donating money to support non-profit organizationReducing total amount of tax payment to governmentShowing their concern to social responsibility as charity
18 Application question 1How should TOMS handle it if at some point becomes economically unfeasibility to give away a pair of shoes for every pair it sells? For instance, if TOMS decided to shift to a model of giving away one pair of shoes for every two pairs that it sells, how should it communicate that decision to its stakeholders?
19 Answer AQ 1 Two steps for communication Showing accounting data to stakeholdersBreak even pointSustaining the original ideaPhilanthropy and profit
20 Application question 2What can a business that wants to operate in a socially conscious manner, but doesn’t have the mission and business model that emphasizes social consciousness or philanthropy to the extent that TOMS does, learn from TOMS’s experiences?
21 Answer AQ 2 Air pollution industry Oil refining, garbage furnace Offering job opportunity to local workers priorityOffering 24 hrs hot water for free to local community