Blake Mycoskie: Doing Business and Doing Good

How TOMS Founder Blake Mycoskie created a global apparel brand one step at a time [rf. One for One.®].

I have argued that to do good meaningfully over the long run, one has to have structure, processes and commitment that underpin and sustain that effort.  More specifically, philanthropy succeeds best when it makes money as part of doing good and it does good as part of making money.  This way, it isn't so reliable, or merely reliant, on donors to fund its efforts, initiatives and projects.

So, in this respect, a business is a perfect vehicle for doing good.  But the question from Forbes Joseph Deacetis is a good one:  How can TOMS survive as business by giving away one pair of shoes for every pair it sells?

Mycoskie gives us a good clue:  In part, TOMS makes it work by managing its costs (shunning splashy marketing campaigns) and gaining cost efficiencies (relying on customers to spread the word about the good they do by buying TOMS).  I am sure there are other efforts along these lines.  Also it may be that TOMS rely on a host of its other products, such as totes, sunglasses, and necklaces to help fund its shoes giveaways.  Shoes, in other words, maybe a strategic loss leader for the company.  On the whole, though, I imagine that TOMS have formulated algorithms for the best price points that permit them to do good and earn money.

To my argument at the outset, profit and philanthropy can meaningfully, viably walk hand in hand.