Question: can you answer one through four in full paragraphs. 9.1 Thinking Critically such TORS que med >> TOMS SHOES: ETHICALLY GLOBAL? The focus of most
can you answer one through four in full paragraphs.
9.1 Thinking Critically such TORS que med >> TOMS SHOES: ETHICALLY GLOBAL? The focus of most of the chapters in this textes been on companies seelong toe in many cases thing to operate according to clearly established thical principles that do how they treat their stakeholders. The concept of doing the Hothing has been presented as a natural ligament to the central business purpose, whether making cars.computer or provid ing financial or consulting services. But what about a company that was started specifically to do the right thing? Not a consulting.com pany to advise other companies on ethical business practices, but company whose core purpose is conscious capital delivering product as a means to another and in 2006 Be Mycoside was inspired by a visit to Argentina to bring the traditional Argentine oporoosip-on shoe to the US. mar ket. Not an unusual decision for a serial entrepreneur We Mycoskie but what made this idea unique was his purpose for this business While doing community service work in Argentina, Mycoskie was struck by the country's health and poverty problems and in particu far the large number of children without shoes. His idea was to work with Argentinean shoemakers and vendors to produce shoes with jedilmy Sad Photo Vibrant colors and prints for the US market and to offer those genu. Ine olarpoto shoes at a price point that would allow his company to give away one per free for every pair sold Mycoside originally intended to give 200 pairs of shoes to the children of Los Pletones in Argentina, but the buy-one-give-one-away model proved to successful that the first shoe drop as the donation visits have become known delivered 10.000 pairs of shoes to match 10,000 pairs purchased by customers at such as as Booming- dale's, Nordstrom, and Urban Outfitters. In the years since Mycoskie's company TOMS was founded, over 38 million pairs of shoes have been donated 65 countries under the "One for One program. The Ethiopian shoe drops are especially significant because of a local disease called podoconiosis a form of elephantiasis Contracted through the soil, the disense causes disfigurement and ulcers in the lower legs, and sufferers are ultimately banished from their villages like lepers. The good news is that me disease is 100 percent preventable by wearing shoes. An important point to remember when learning about TOMS is that this is a for-profit company. Mycoskie was inspired by the Newman's Own company started by actor Paul Newman and writer A E. Hotchner in 1982, which has donated over $300 million to community and health-related benefit programs in the past three decades. Newman's Own is also a for- profit company. The pursuit of a favorable tax status as a nonprofit company was never the point; it was the ability to give away the profits to worthy causes-that's why the companies were created in the first place In July 2011 the "One for One" program was expanded to include eyewear, with the purchase of a pair of TOMS eyeglasses providing medical treatment, prescription glasses, or sight-saving surgery through a partnership with the Seva Foundation. The program is currently in operation in 13 countries worldwide-Bangladesh, Cambodia, Egypt.Ethio- pia, Guatemala, India, Nepal, Pakistan, Paraguay, Tibet, Tanzania, Uganda, and the United States in April 2012, the company asked customers to participate in "A Day without Shoes in which participants would sac rifice wearing shoes for one day, so kids don't have to. The campaign garnered a lot of support from existing TOMS customers, but also prompted criticism of the entire TOMS model. Critics argue that the model fails victim to the mistake of "giving a man a fish" rather than teaching a man to fish. In addition, the dumping of thousands of pairs of free shoes in local markets however well intentioned), does irreparable harm to local shoe manufacturers and vendors who lose their markets overnight. They acknowledge Mycoskie's entrepreneurial skills in combining peasant chic with "social conscience, but argue that the "feel-good purchase factor offers a short-term buzz at the expense of the longer-term Impact that could be achieved if the funds could be deployed in a more effective way. CONTINUED >> 201 To help celebrate the company's ninth anniversary in May 2015, Mycoskle used Instagram to underline the company's -B161* model by donating a pair of shoes for every Instagram photo of bare feet posted with the hashtag #withoutshoes. Other companies, such as eyewear vendor Warby Parker, have taken a different approach to the B1G1 modet. Rather than simply glving eyeglasses away, the company covers the cost of training, parts, and manufacture for a second pair of glasses through social venture partners such as Vision Spring, which then employ sales agents (9,000 in 13 countries) to give basic eye exams and sell eyeglasses at affordable prices in their local communities. The premise is that supporting a sales network reduces the likelihood of making communities dependent upon handouts, or situations where donations were made to children who already had eyeglasses or shoes. TOMS, meanwhile, has taken some steps to address criticism of its "dumping model, where shoes manufactured in China are given away in Africa, by supporting local manufacturing options to ensure that residents receive shoes that are best suited to their local climate. This, in turn, provides employment in addition to free footwear. QUESTIONS 1. Does TOMS buy-one-glve-one-away model make it a more ethical company than a traditional manufacturer donating money to a charity? Why? 2. Why would customers pay such a high price for a simple linen shoe or pair of sunglasses? 3. Mycoskie designed the TOMS model from the ground up. Could an established company improve its ethical standards by launching a model like TOMS? How? 4. Is the Warby Parker model more or less effective than the TOMS model? Explain your answer. Sources: Stacy Perman, "Making a Do Gooder's Business Model Work, Bloomberg Businessweek, January 23, 2009, Laurie Burkitt, "Companies' Good Deeds Resonate with customers, "Forbes, May 27, 2010; Blake Mycoskie The Way I Work." Inc, June 1, 2010; Riera Butler, "Do Toms Shoes Really Help People?" Mother Jones, May 13, 2012: James Poulos, "Toms Shoes: A Doomed Vanity Project?" Forbes, April 11, 2012, Marco della Cave, "Toms Uses Instagram to Give away a Million Shoes," USA Today, May 5, 2015; and Sarika Bansal, Shopping for a Better World." The New York Times, May 9, 2012

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