Case 6: TOMS Shoes in 2016: An Ongoing Dedication to Social Responsibility, by Margaret A. Peteraf, Sean Zhand, and Meghan L. Cooney (page C-57)
In addition to reading the case study provided in the textbook, research the company further to find any relevant events that have transpired since the writing of the case study. Use the company’s website (The TOMS Story | TOMS), Internet search engines such as Google, online data services, or other sources to locate the latest articles about the company including press releases and current financial information. Feel free to bring in any recent news or current events concerning this company into your answer. Be sure to cite all sources according to APA guidelines.
For assistance with analyzing any financial data in this case, I attached Table 4-1 (Key Financial Ratios: How to Calculate Them and What They Mean) from textbook as a useful reference. I’m also attaching these instructions with web links for TOMS.
Please limit your analysis to 4 pages (1000 to 1100 words), double-spaced.
Case Questions
1. Consider the expression “timing is everything” in relation to the building of the TOMS brand. Besides the influence of recovering economic conditions and the increased affluence of potential customers, what forces contributed most significantly to TOMS growth and market share? In your answer, consider the following:
a. Which cultural/social concepts and/or norms influenced a potential buyer to purchase TOMS products? Detail the impact of your identified concept/norm on TOMS growth.
b. Do you think that most businesses can successfully leverage the same cultural/social concepts and/or norms that TOMS did? Be descriptive in your response, and, if appropriate, identify a company/business that has put such principles to work to their advantage.
2. Review the TOMS website (especially the section on “Impact”) and access the “Code of Business Practices” via the link below. Of the elements of the Code, select three and review them in terms of ethical behavior and corporate social responsibility (CSR). Explain how they will affect customers, suppliers, employees, or society at large.
TOMS CODE OF BUSINESS PRACTICES
3. Explain what is meant by the term sustainability. Describe actions, principles, and practices of TOMS that are consistent with sustainability. Also describe any of the practices or actions of TOMS that might fail to qualify as sustainable. In other words, provide relevant examples of both sides of sustainability at TOMS.
4. TOMS Founder and CEO Blake Mycoskie identified a problem, synergized an approach for resolution, and created an infrastructure for execution. Mycoskie built his company on the promise of “One for One,” donating shoes on par with shoes purchased. Evaluate how well that slogan encapsulated Mycoski’s vision and corporate commitment. Be both specific and expansive in your response, providing examples to support your perspectives. For reference, see the linked article on Mycoskie’s recent reimagining of TOMS’ mission.
The Founder of TOMS on Reimagining the Company’s Mission
5. TOMS is not the only company that employs CSR thinking to avoid producing a negative impact on society. Choose one of the following companies:
• Ford Motor Company
• Merck & Co. (pharmaceuticals)
• Burt’s Bees, Inc. (personal care products)
• The Bellagio Las Vegas (hotel/resort/casino)
• Yum! Brands (restaurants)
Conduct an Internet search of your selected company and determine its level of commitment to CSR. Write several paragraphs explaining what you found.
