Created in 2006 by entrepreneur Blake Mycoskie after a trip to Argentina, TOMS Shoes is definitely a front-runner on the topic of ideal stakeholder management. The company prides itself on its socially-responsible business model which entails giving a pair of shoes away to needy children around the globe for every shoe purchased – a concept coined as, “One for One”. TOMS has enveloped a strategy to center their corporate structure around philanthropy, yet operationally has generated insurmountable profit for itself, internal, and external stakeholders.
With this focus on stakeholder management, TOMS has integrated it’s model around employee rights, fair trade, and poverty reduction. These platforms allowed the company to gain even more attention from the media, expand into eye wear, and even allowed the company to stay afloat during the recession. TOMS’ sustained growth and proactive corporate governance structure establishes the success of the company with their “One to One” strategy.
There are a multitude of stakeholders who affect and are affected by TOMS’ strategies. Some of the internal stakeholders are Mycoskie, the manufactures, and the employees, who all benefit from fair labor standards. External stakeholders include any entity benefiting from TOMS at the receiving end. For example, this would include various humanitarian organizations local manufactures, and consumers. It is so unusual that a for-profit organization like TOMS prioritizes the interests of its stakeholders, namely it’s beneficiaries and not it’s shareholders, as most companies would have it. I would go so far as to argue that TOMS is really a successful business in NGO‘s clothing..(wolf in sheep’s clothing…you guys get it)