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The TOMS business model is unusual. While many businesses engage in cause-related marketing, at TOMS the philanthropic component is just as important as the for-profit business. The cost of providing the shoes to children in need is built into the shoes’ sales price. The customer is thereby turned into the benefactor, enabling TOMS to become a sustainable organization based on giving back to the world on a continuous basis. As long as people continue to purchase TOMS shoes, children in need will receive a pair in return. In the process, TOMS is also able to turn a profit, support itself, make the world a better place, and educate consumers how they are helping children in need by providing them with a pair of shoes.

This case will discuss Mycoskie’s revolutionary business model and how it has achieved such success. It will begin by analyzing the background and origins of the TOMS Shoes business concept. We then discuss TOMS’ operational approach, including how the organization manages to carry out its central mission. We also examine the corporate culture—a necessity for the successful operation of TOMS shoes—and the marketing of TOMS. Next, we analyze how this business model has impacted both society and other organizations. Since no business is immune from ethical issues, the following section details some of the criticisms and risks of TOMS Shoes. We conclude by speculating about the future of this company.

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