TOMS Shoes Creating Shared Value

After watching Michael Porter's discussion on creating shared value, I immediately thought of TOMS shoes.  They are a great example of creating shared value.  Their main mission is called One for One (R). For every pair of TOMS shoes that is purchased, a new pair of shoes are given to a child in need.  This is such a great idea, because it makes people feel good about their purchase by it benefitting someone in need while getting a product of good quality that was made of recycled material and came from a company with good operating practices.  Also, the prices are reasonable while being cheaper or comparable than many of the name brand shoes.   

The shoes are made of sustainable and vegan materials.  80% of the materials are recycled post-consumer waste and printed in soy ink. The company constantly audit supply chain to make sure procurement is in accordance with their values.  They also participate in environmental and social responsibility committees, as well as many sustainability conferences and gatherings.   

Michael Porter mentions 3 main areas where a company can create shared value, and TOMS shoes performs well in all 3.  The 3 main areas include the product itself, the value chain, and the cluster. The company focuses on environmental and social impacts for products, operations, giving and their employees. The product's value to the customer is in using recycled materials, a quality product, quality factory working conditions, and being able to give a pair of shoes (as if getting a buy one get one free deal).  The customer is not only buy for themselves, but also buying for people in need.  This doubles the end users, because the people in need otherwise would not have bought these shoes (or had any shoes).  All of these qualities add value to the customer.  For the second area of CSV, the value chain, the products' sustainable recycled materials can be a lower cost to the company and the environment at the same time.  For the third area of enhancing the clusterThey provide jobs to produce the shoes in China, Ethiopia and Argentina while focusing on employee working conditions and benefits.  The company is an advocate for the prevention and elimination of slavery and human trafficcing.  The company works hard on having a responsible value chain. 
 
TOMS shoes have given away 10 million pairs of shoes to people in need, which means they have also sold 10 million pairs of shoes.  They also use the same concept for glasses, and have provided 150,000 needy people with prescription glasses. 

TOMS shoes is a great example of a business model that truly creates shared value for many.

TOMS - One for One Shoes and Eyeware. http://www.toms.com/ 2006 - 2013.  Accessed 21 Sept 2013.

Laught Often!

A very common saying is "Laugther is the best medicine."  Lee S. Berk of Loma Linda Unversity has done much research on the effects of "mirthful laughter."  This type of joyous laughter is considered a eustress  or positive stressed as discussed by Dr. Montag in lecture 1 of Module 2 for this class.  Berk conducted some experiments on anticipatory mirthful laughter, as in, the subjects would know that they are about to watch their favorite funny movie, and the experimenters would take blood samples before during and after the movie that caused mirthful laughter.  They found that endorphins and human growth hormone was increased before starting the movie with anticipation of the movie, and it stayed out those levels during and after the movie as well.   This research from Berk also found that laughter diminishes cortisol and epinephrine as well as strengthens the immune system.  She even claims that that body responds to laughter in the same way that moderate exercise does.   I have already felt that laughter has many health benefits physically, emotionally, socially, and physiologically.   An interesting finding in this research was that the anticipation of mirthful laughter also had the physiologically effects of laughter.  Optimism and looking forward to the future can be a positive stressor.  This could be a helpful reminder for individuals and managers to try to plan, organize, or create things that people can look forward to in order to have another eustress.   There are so many health benefits to laughter.  Maybe that is why babies laugh so often and so joyously! Laughter truly seems to be a great medicine that can and should be used as often as possible.

"Endocrinology; Just the expectation of laughter boosts endorphins and human growth hormones." Science Letter via NewsRx.com.  April 21, 2006.