Example Of Case Study On Toms Shoes Corporate Social Responsibility

<h2>Corporate Social Responsibility (CSR)</h2> <p>According to Sims (2003, p. 43), corporate social responsibility “is a continuous commitment by a business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the community and society at large.”<br /> There are various advantages associated with corporate social responsibility. One of them is in savings costs. A good case in point is General Mills which has made significant energy savings as illustrated by the figure below.</p> <h2>Source: Generalmills.com</h2> <p>Another advantage of carrying out corporate social responsibility is to encourage employee engagement. For example, Solo Company engaged over <!--more-->300 employees to take part in recycling, education and beautification programmes in line with the organization’s CSR. The program was carried out under the slogan shown below.</p> <h2>Source: Solocup.com</h2> <p>Additionally, CSR is also beneficial because it creates reinforces brand image. For example, Red Bull’s business model is understood through the formula 1 sponsorship.</p> <h2>Source: Infiniti-redbullracing.com</h2> <p>Despite the numerous advantages, CSR has its disadvantages. One of them is lose of focus. Vogt (2008) argues that in some instances, organizations go beyond the initial emphasis. This may result due to fear of public backlash and a misguided belief that a certain program will be good for long-term performance of the company. In the end, the organizations may divert its attention from its fiduciary objective to shareholders (that of maximizing profits).<br /> Another disadvantage of CSR is the lack of a lasting impact. Sometimes, organizations focus on short-term gains and fail to concentrate on programs that create a lasting impact. As discussed later in the report, Tom Shoes is a good example because the CSR program does no address the root causes of poverty.<br /> Another disadvantage of CSR is the huge costs involved. In effect, the visibility of small businesses involved in CSR fades compared to the financial muscle of larger corporations that are able to afford large CSR campaigns.</p> <h2>About Toms Shoes</h2> <p>Toms Shoes is a footwear company based in Santa Monica (California). Apart from making and selling shoes, the company also makes eyewear. The reason why Toms Shoes features in this report is because the company has an interesting policy of donating part of the profits for every pair of shoes and eyewear sold. For every pair of shoe sold, Tom Shoe donates the profit to support impoverished children in the developing nations; the same case also applies for every pair of eyewear sold.</p> <h2>Advantages and Disadvantages of Tom Shoes CSR</h2> <p>Advantages<br /> - Positive impact on the lives of young people in the developing nations<br /> - Brand reinforcement<br /> - Customer engagement</p> <h2>Disadvantages</h2> <p>- Unsustainable campaign<br /> - Negative impact on jobs<br /> - Failure to address poverty</p> <h2>Positive Impact on Lives</h2> <p>The fact that Tom Shoes CSR has changed lives is a big plus for the organization. A good example is the story of Goma from Decomcratic Republic of Congo. By collaborating with a local NGO, Tom Shoes provided the young boy with shoes to attend school and supported the young man’s education. The same support was also extended to other children from the village as well.</p> <h2>Source: Toms.com</h2> <p>Brand Presence<br /> Another success of Tom Shoes CSR is the creation of a strong brand that people can easily identify with because of “brand humanization.” Tom Shoes is known all over the world because of its unique marketing. Clients like to be associated with the brand because they know the story behind the shoes, and the difference the shoes make in other people’s lives. The storyline increases brand appeal. Above all, customers trust the brand and its mission.</p> <h2>Source: Forbes.com</h2> <p>Customer Engagement<br /> Lastly, Tom Shoes achieves customer engagement through its CSR. Through its one for one ad campaign, Tom Shoes engages its consumers on the product choices that they make and creates awareness on the state of poverty in other parts of the world. Therefore, the CSR message engages the consumers in ways that have not been witnessed before.</p> <h2>Unsustainable Program</h2> <p>Although the CSR program has its advantages, Tom Shoes campaign has its own fair share of disadvantages. One of the issues facing the program is sustainability. To some people, Tom Shoes runs an unsustainable campaign because there is no focus on what happens after the shoes wear out. This is something Tom Shoes admits in the 2011 giving report (http://www.toms.com/giving-report/l) and states that they strive “to set up sustainable giving partnerships that allow giving repeatedly as children grow.”</p> <h2>Negative Impact on Jobs</h2> <p>Again, there is talk of pushing other shoe makers out of business. Although the shoes make an impact on few young people in the developing countries, the negative impact on jobs could be felt by tens of thousands of people. This negative criticism compounded by the company’s inability to take people through their manufacturing factories creates an impression that Tom Shoes is not concerned about workplace quality.</p> <h2>Failure to Address Poverty</h2> <p>Lastly, it is argued that Tom Shoes does not address the root cause of poverty rather addresses a sign of poverty (shoelessness). According to a case study of Tom Shoes done by Jacqueline Bartter, the company supports a temporary solution to poverty instead of prioritizing the stimulation of local economies, which would give individuals the opportunity to buy shoes for themselves and their family members instead of being reliant on charity.</p> <h2>Conclusion</h2> <p>In today’s world, corporate social responsibility is a necessity. Tom Wolf, in particular, has created a $ 100 worth brand due to its unique CSR idea. Apart from creating a huge brand and achieving customer engagement, Tom Shoes has managed to improve the livelihoods of many kids across the world. Nonetheless, the organization needs to realign its CSR in order to create a lasting impact.</p> <h2>References</h2> <p>Bartter, J. (2012). A new model of<br /> corporate social responsibility:<br /> A case study of<br /> Tom Shoes. Retrieved<br /> September 3, 2013, from<br /> ucsd.edu:<br /> http://irps.ucsd.edu/assets/001<br /> 503681.pdf<br /> Biro, M. M. (2012, May 22). 5 "Foot"<br /> Steps To Creating Brand<br /> Appeal. Retrieved<br /> September 3, 2013, from<br /> Forbes.com:<br /> http://www.forbes.com/sites/m<br /> ghanbiro/2012/05/22/5 foot-steps-to-creating<br /> brand-appeal/<br /> Sims, R. R. (2003). Ethics and<br /> Corporate Social Responsibility:<br /> Why Giants Fall<br /> Westport,<br /> CT : Greenwood Publishing<br /> Group.<br /> Vogt, T. (2008). Corporate social<br /> responsibility standard - Pros<br /> and Cons. New York,<br /> NY : GRIN Verlag.</p>