The Falcon   |   Volume 81, Issue 26

Published 6/02/10   |   Log In

Are TOMS shoes best fit for philanthropy?

Better ways to give efficiently

By MEGAN HOYE, Opinions Writer

Published: October 14, 2009

You see them everywhere: stomping impatiently in the long lines of Gwinn Commons, running to Otto Miller Hall for an 8 a.m. class or trudging up the hill to Ashton Hall. TOMS Shoes are clearly popular among SPU students, but the poverty-conscious shoes are more an altruistic status symbol than a donation, which comes at a hefty price.

TOMS Shoes was founded by Blake Mycoskie under the charitable work principle of "One for One," which has been commended by magazines such as People, Rolling Stone and Elle. The company donates one pair of shoes to a child in need for each pair sold. "Using the purchasing power of individuals to benefit the greater good is what we're all about," states the TOMS Web site (http://tomsshoes.com).

But charity should be as efficient as possible. Instead of giving Mycoskie a profit and calling it charity, it's more effective to buy less expensive shoes and donate the left-over money directly to global relief organizations.

Suppose you opt to buy a pair of shoes that cost $20 rather than a pair of TOMS, which are, at the most modest price, a total of $44. Buying the cheaper pair of shoes leaves an extra $24 to go toward donations. You may be wondering what sort of impact a mere $24 could make. According to the ONE Campaign, a donation of that amount can provide two nets to protect against malaria at $10 each, treat a person living with HIV/AIDS for two months, prevent maternal death by providing vitamin supplements at $1.25 per pill or fund six months of education for a child in Africa.

The TOMS we see around campus have provided relief for many, but the money spent on those shoes could have provided even more through a direct donation to a nonprofit organization.

A January 2009 Business Week article stated that, TOMS Shoes accumulated $4.6 million in revenue from its first 115,000 pairs of shoes, and the TOMS Web site projects sales surpassing 300,000 by the end of 2009. While the company does donate portions of its profit to a global cause, it describes itself as a "for-profit company with giving at its core."

Though purchasing TOMS makes a positive impact, it doesn't equate to making a direct donation. Buying the shoes purely for philanthropy is a waste of money because the amount you spend doesn't go straight to relieving global poverty. A pair of TOMS cost anywhere from $44 to $98, and while exact manufacturing figures are unavailable, Sustainable Business Design praises the shoe's low manufacturing cost and retail prices, which allow for both donation purposes and company profit.

Buying TOMS isn't a bad thing; purchasing a pair of these shoes does more good than buying a pair of Converse. But all too often, a pair of TOMS shoes are merely a symbol to the public that their owner is a charitable person.

"If people see TOMS on your feet, they initially think you're a do-gooder," said sophomore Natalie Evans. The social message that transmits by wearing TOMS can become alluring to a potential customer, but it is important to discern the difference between giving to charity and buying TOMS.

The concept behind TOMS is a commendable social and marketing tool. As a for-profit business, it's not necessary for TOMS Shoes to donate to charity, and such innovation and giving on behalf of a company is admirable. Nevertheless, TOMS built its empire using social justice to attract its customers. Consumers must be aware of this before making their purchase.


Comments

Katy said:
Fantastic article. Makes a great point with just a few basic facts. I'll be passing it on. =)
Mckenzie said:
Another thought on TOMS: by giving shoes to children who would otherwise be barefoot, we can inadvertently create a physical and economic dependency. This makes the (likely) future unavailability of shoes a much greater threat than the pre-shoe implications for a child. Thank you for mentioning the multitude of better uses for our giving money!
JamesC said:
I do no entirely agree. If TOMS is able to become a successful, profit making firm, than that could send a message to other corporations that charitable giving is more than just a way to increase good public relations.
Currently, the predominating belief is that profit is the ultimate end of a corporation, and that a business manager's ultimate responsibility is to their shareholders. However, as we have seen, this can create an atmosphere that encourages greed and a lack of integrity with business practices.
If TOMS is able to successfully generate profit using a business model that uses profit as a means to serve the community, than I believe that will create a greater change for good than the extra $20 you could be giving.
Historically, college students are great at buying clothing, but sub par at consistently giving charitably to worthy causes. No one would deny that children in Africa need shoes, and a company such as TOMS who is able to both earn profit and then use that to benefit those in need is making a great difference in the world.
I respect your logic that the total gift size could be greater if the money was saved on cheaper shoes, however, it is more likely that the money will be used over several weeks on midnight Taco Bell runs. When the money is spent on TOMS, children in need receive shoes and corporate America gains a valuable example of the proper use of profit.
JamesC said:
I do not entirely agree. If T

The opinions represented here do not necessarily represent the views of The Falcon or Seattle Pacific University.

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