Entrepreneur's Journal January 23, 2009, 12:52PM EST

Making a Do-Gooder's Business Model Work

(page 2 of 2)

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TOMS has donated over 115,000 shoes to children around the world. TOMS SHOES

Mycoskie created a shoe for the U.S. market based on the traditional Argentine "alpargata." TOMS SHOES

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By the beginning of 2007 we had orders from all over the world—and I had a real business that supported itself.

"In our first year in business we were able to make good on a promise I had made to the children of Los Piletones, Argentina, when I first visited in January 2006. With the original intention of bringing back 200 pairs of shoes, I returned to Argentina with 10,000 pairs to match the purchases of caring customers. Many of these same customers expressed the desire to join TOMS on our giveaway trips. Now, through a new bi-monthly program we set up, they can hand-deliver shoes to children in Argentina and see their impact in person.

"About a year and a half ago, I was giving a speech in Northern California, and a woman came up to me. She told me about this disease in Ethiopia called podoconiosis, a form of elephantiasis. People were getting it through the soil and being ostracized from their communities. The disease causes disfigurement and ulcers in the lower legs—but it is 100% preventable by wearing shoes. The pictures she showed me were so horrible I couldn't believe it was that bad. Within about eight months after that meeting, I did research and went on a trip to Ethiopia. I saw thousands who had this disease. Five months after returning, I had a plan to launch a shoe drop there. This past holiday season, we provided 37,000 Ethiopian children with shoes that will keep them from contracting this disease. I saw firsthand that conscious capitalism isn't just an idea—the results are real. Our efforts are ongoing. Last year, I pledged to give 100,000 pairs of shoes to children in Haiti through the Clinton Global Initiative.

"Ultimately, it is our customers who drive our success. In fact, many of our customers become something more: 85% of our employees and interns were customers first. Without their dedication, our one-for-one model would not be possible. This fall, we launched the first intern tour. Each team of interns traveled to high schools and colleges across the country and hosted TOMS events to encourage students to make a positive change in the world. Many of these interns stay with our company and become passionate, hard-working, full-time employees.

"When you buy shoes, you can now make a conscious decision to give back or not. To repeat Dedman's advice, when you give more, you live more. Take my word for it: you won't ever look back."

—edited by Stacy Perman

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