Would you buy shoes just because their maker is pledged to philanthropy? Blake M

Question

Would you buy shoes just because their maker is pledged to philanthropy? Blake Mycoskie wants you to. Back in 2002, he was participating with his sister in the reality TV show The Amazing Race. It whetted his appetite for travel, and he visited Argentina in 2006. There he came face-to-face with lots of young children without shoes, and he had a revelation: He would return home and start a sustainable business that would help address the problem.

Mycoskie launched TOMS to sell shoes made in a classic Argentinean style. But there's a twist - for each pair of shoes it sells, the firm donates a pair to needy children. Blake calls this One for One, a "movement" that involves "people making everyday choices that improve the lives of children." After giving away its one-millionth pair of shoes, Mycoskie renamed the company One for One.

One for One's business model can be described as caring capitalism or profits with principles. Two other names associated with this approach are Ben and Jerry's Ice Cream and Tom's of Main. But each of these firms was sold to a global enterprise - Unilever for Ben & Jerry's and Colgate-Palmolive for Tom's of Maine. The expectiation was that the corporate buyers wouldn't compromise on the founders' core values and social foals. Who knows what the future holds if One for One grows the the point where corporate buyers loom.

Several states have passed laws creating the "benefit corporation" as a new legal entity. The "B-Corp" is designed to protect the missions of firms like One for One for the long term. It also requires them to report their social benefit activies and impact.

Questions:

Is Blakes business model one that others should adopt?

Is it ethical to link personal philanthropic goals with the products that your business sells?

And if an entreprenerial firm is founded on a caring capitalism model, is it ethical for future corporate buyers to reduce or limit the emphasis on social benefits?

Should more states get behind the B-Corp Concept?

Explanation / Answer

1.

Blakes business model is one of the sought after business approaches that are been generally adopted by firms to enhance their business reputation and maximize profits. Also, this model aims to improve underpriveledged's life and provide shelter to the poor and needy. Besides that, this business model makes profits with principles.

2.

There is no problem if a businessmen compounds philathrophic activities with his/her busines strategies. It helps businesses attract consumers by indulging in green campaigining and undergoung sustainable development activities. Promoting products through enviormental means provides an edge to the company and help them make maximum sales

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