Impact of Social Entrepreneurship

[RoeiEisenberg]

While traditional institutions and humanitarian organizations contribute significantly to many areas in need across the globe, the Herculean effort required to correct the course is too great a responsibility for any one sector of society. Social entrepreneurship offers the chance for profitable ventures - who do not pretend to proffer a complete solution to our planet's overwhelming needs - to give back while still enjoying the fruits of their hard work. Think of it as capitalism, with a conscience.

TOMS Shoes, a Santa Monica based footwear company with a non-profit arm, Friends of TOMS, has been selling their product with a simple motto - One for One. While sitting on a farm in Argentina, Blake Mycoskie - a native of Arlington Texas - developed the idea of selling shoes on a one-for-one basis. The original models were a hip take on the traditional Alpargeta style of cotton shoes. For every pair Blake sold, another was put away for a child in need. During the first year alone, TOMS distributed 10,000 shoes in Argentina.

Friends of TOMS, the non-profit, coordinates these Shoe Drops to allow volunteers to experience their impact first hand. Volunteers pay their own way, with most destinations burning a four figure hole in their pocket, so that the money goes strictly to giving. The branding worked, and TOMS enjoyed an incredible Golden Age in word-of-mouth marketing. The premise of cheap, lightweight shoes with a feel good twist worked its charm on many demographics in the American market. TOMS were fashionable enough for Neiman Marcus, green enough for Whole Foods, and simply life-style affirming for skate shops and surf shacks.

According to the most recent numbers, TOMS had given over 600,000 shoes to children in Argentina, Ethiopia, Guatemala, Haiti, South Africa, as well as Louisiana, Kentucky, Mississippi, and Florida in the United States. Rwanda joined the list two months ago in March (see link - http://www.toms.com/blog/node/844). With the help of Bridge2Rwanda volunteers, TOMS hopes to give a total of 33,000 pairs in the Shyira Diocese region.

This is just the beginning of the one for one movement. Which brings up a number of questions.
- What do you guys think of this union of business and humanitarian aid - basically consumer culture manipulated by "giving"-based marketing?
- What other companies have been experimenting with social entrepreneurship, and with what results?
- Is this a case of assuaging one's conscience by a course of least necessary action?

I'd love to hear your thoughts and opinions.

Roei