Corporate social responsibility (CRS) defined as a business practice that engages and participates in inventiveness and programs that profit sand help the society (Chu, 2013). Further, CSR is now becoming more common as forward-thinking companies entrench and set in continuity and sustainability into the center of their business functions to establish and generate joint and collective value for the society and business. Consequently, the notion and concept of corporate social responsibility imply that organizations have philanthropic, ethical, and moral obligations as an addition to their duties and responsibilities to create and earn a fair return for shareholders and abide by the law. A conventional outlook and analysis of the organization advocates and recommends that it’s central, or exclusive, responsibility, is to its investors or stockholders. Conversely, corporate social responsibility entails that organizations implement or espouse a wider view of its responsibilities not only to the investors’ but also to the local community, suppliers, customers, state, environmental groups, and special interest groups.
Toms Shoes Company
TOMS Shoes is a for- profit business company that consist of a benevolent and philanthropic aspect or element (Barnett. n.d). Therefore, the company was established after, Blake Mycoskie, founder, observed the scarcity and poverty amid villagers in Argentina, scarcity so severe that the villagers could not even pay for or own a pair of shoes. Consequently, Mycoskie arrived in the United States with a mission and 200 Argentinean shoes. He wrote a unique business plan and went to various retail stores. His aim was to start an organization that would offer a pair of shoes for a needy child in need, for every pair of shoes procured. Finally, the idea was singled out by Los Angles boutiques, and the business has $ 9.6 million in revenue.
The Aspect of Corporate social responsibility for TOMS Shoes
The TOMS business plan and model is unique and remarkable. As many companies employ and participate in the cause -related marketing, at TOMS they believe that the philanthropic element or aspect is very vital and significant, as for- profit business. Therefore, the cost of offering shoes to children in poverty is established from the shoes’ sales price (Zimmerman, 2009). Further, the customer becomes the sponsor and benefactor, allowing and giving a chance to TOMS Company to become a sustainable organization founded on giving back to the society, and the world on a constant basis. While people keep on and continue purchasing TOMS shoes, every needy child will receive a pair of shoe in return. Conversely, TOMS Company makes a profit, sustains and supports itself, enlightens the customers on how they are helping children from poor backgrounds just by providing them with a pair of shoe, thus making the world a better place.
Benefits of TOMS Shoes in using Corporate social responsibility
Since, corporate social responsibility isn’t just about doing the correct and the right thing, but also it entails behaving reliably, and dealing with dealers and suppliers who do the same. Additionally, it builds a reputation to the company at hand and offers direct business benefits (Zimmerman, 2009). Consequently, TOMS Company is a benefactor to this benefit, as it has been able to create a notable reputation to its investors and the world. Hence, it has a positive impact on how they seen by their customers, society, and the world.
In conclusion, the above case study explains how TOMS Shoes are important and are the core of the company’s activities, since for this reason; it has contributed to its profitability and revenues.