Page 115 - Foundations of Marketing

82 Part 1 | Strategic Marketing and Its Environment

TOMS takes its obligations for social responsibility seri- managed. TOMS created a set of manufacturing standards
ously. The company builds the cost of the extra pair of shoes based upon International Labor Organization compliance
and eye care into the price of the products it sells. TOMS also standards for its manufacturers. The company regularly per-
works closely with local humanitarian organizations. “With forms audits to check that the factories are complying with
TOMS we always work with local nonprofits or NGOs to company standards. TOMS also seeks to create a strong orga-
understand what the need is in a community before we just go nizational relationship with its employees and volunteers.
in and start giving,” said Liza De La Torre, VP of Sales and The company often allows employees to participate in Shoe
Marketing at TOMS. Drops (distributing the shoes to children) so they can see
Customers who do business with TOMS feel committed firsthand how their efforts are helping others.
to the company because they know that their purchases are Despite its success, TOMS’ mission is far from complete.
going toward a good cause, even if they might pay a bit more As its expansion into eyewear demonstrates, the company is
in the process. TOMS goes to great lengths to educate the looking for new opportunities to apply its one for one model.
public about the importance of its mission. Although it does TOMS demonstrates how an innovative concept and the abil-
not have a marketing budget, the company provides intern- ity to incorporate philanthropy into business operations can
66
ship opportunities and engages brand ambassadors at univer- create a successful company that can make a difference.
sities to spread the TOMS message. Every year the company
promotes the One Day Without Shoes campaign, in which Questions for Discussion
participants spend one day without shoes to understand what
children in developing countries must undergo daily. These 1. Do you think TOMS is successful because of its
events have been supported by celebrities such as Charlize unique products, or is it the firm’s approach to social
Theron, Kris Ryan, and the Dallas Cowboys Cheerleaders. responsibility?
Despite TOMS’ clear philanthropic component, risks for 2. How does TOMS manage its supply chain in order to
misconduct still exist. The company uses factories in China, ensure ethical and socially responsible conduct?
Argentina, and Ethiopia for manufacturing, which creates 3. How does TOMS’ business model relate to the under-
complex supply chain relationships that must be carefully standing of stakeholders and strategic philanthropy?

NOTES

1 Diane Brady, “Volunteerism as a Core 3 P. Varadarajan, Terry Clark, and William M. dodd-frank-s-implementation-calls-for-6-5-billion-
Competency,” Bloomberg Businessweek , Pride, “Controlling the Uncontrollable: Managing 5-000-staff-in-budget.html (accessed February 22,
November 12-18, 2012, pp. 53–54; David Gould, Your Market Environment,” Sloan Management 2011); Binyamin Appelbaum and Brady Dennis,
“Cause Marketing—Where CSR Meets CRM,” Review (Winter 1992): 39–47 . “Dodd’s Overhaul Goes Well Beyond Other
Special Advertising Section, Businessweek , 2012, Plans,” The Washington Post , November 11,
4 Jon Sicher, “Top 10 CSD Results for 2008,”
S8; Arianna Huffington, “Companies and Causes: 2009, www.washingtonpost.com/wp-dyn/content/
Beverage Digest , March 30, 2009; Natalie
Social Media Jumpstart a Marketing Revolution,” article/2009/11/09/AR2009110901935.html?hpid=
Zmuda, “Major Changes at PepsiCo as Marketing
Huffington Post , April 6, 2011, www. huffingtonpost topnews&sid=ST2009111003729 (accessed
Department Reorganizes,” Ad Age , June 16, 2011,
.com/arianna-huffington/companies-and-causes- February 22, 2011).
http://adage.com/article/cmo-strategy/pepsico-
soci_b_845657.html (accessed November 16,
reorganizes-marketing-department-beverages/ 10 “Wall Street Reform: Bureau of Consumer
2012); K. Adiwijaya and R. Fauzan, “Cause-Related
228259/ (accessed January 12, 2012). Financial Protection (CFPB),” U.S. Treasury,
Marketing: The Influence of Cause-Brand Fit, www.treasury.gov/initiatives/Pages/cfpb.aspx
5 O. C. Ferrell and Michael D. Hartline, Marketing
Firm Motives and Attribute Altruistic to Consumer (accessed February 22, 2011).
Inferences and Loyalty and Moderation Effect of Strategy (Mason, OH: South-Western, 2008), 11 “Top All-Time Donors, 1989-2012,”
Consumer Values,” 2012 International Conference p. 58.
OpenSecrets.org , www.opensecrets.org/orgs/
on Economics Marketing and Management , Vol. 28, 6 Ibid.
list.php (accessed December 11, 2012).
Singapore; IACSIT Press.
7
Ibid.
12 “Campaign Finance,” The New York Times ,
2 “Dotcom Bust,” Economist , January 28, 2012,
8 John Jannarone, “Discounters Are Still in Fashion” October 8, 2010, http://topics.nytimes.com/top/
p. 66; Sven Grundberg, The Pirate Bay Co-Founder
The Wall Street Journal , February 25, 2011, C8. reference/timestopics/subjects/c/campaign_
Faces New Allegations,” The Wall Street Journal ,
finance/index.html (accessed January 24, 2011).
September 11, 2012, http://online.wsj.com/article/ 9 Joshua Gallu, “Dodd–Frank May Cost $6.5
SB10000872396390443884104577645153822983 Billion and 5,000 Workers,” Bloomberg , February 14, 13 Steve Lohr, “Drafting Antitrust Case, F.T.C.
344.html (accessed December 7, 2012). 2011, www.bloomberg.com/news/2011-02-14/ Raises Pressure on Google,” The New York Times ,
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