Conscious capitalism or marketing is gaining popularity as companies seek to embrace compassion in their business ventures. TOMS Shoes is one of the leading conscious companies with its “one for one” mission. The idea behind this company is to donate one pair of shoes to a needy child for every pair that is sold, since its launch in 2007. According to Tate, by 2015, TOMS Shoes had donated more than “35 million shoes to children in over 60 countries. They give different types of shoes based on terrain and season, and seek to create local jobs by producing shoes in countries where they give” (138). This model of business allows the company to combine fashion with compassion by making profits and helping the less fortunate in society at the same time, as the foregoing arguments underscore TOMS Shoes’ commitment to conscious marketing.
However, conscious capitalistic companies have to make some trade-offs from a corporate standpoint. The major purpose of establishing any business is financial gain. For corporate profits, a management should focus on maximising shareholders’ wealth, and giving products for free affects this objective. In the case of TOMS Shoes, all the donated pairs of shoes could have brought more profit to the company, but the management had to make that trade-off to sustain the envisioned business model.
Undoubtedly, the government could actively stimulate companies to be more conscious of their greater impact through friendly policies. For instance, it could offer tax relieves for such businesses to encourage them to continue engaging in social good. Additionally, conscious start-ups and companies could be given access to low-cost credit facilities to finance their business activities through government initiatives.
Work Cited
Tate, Carolyn. Conscious Marketing: How to Create an Awesome Business with a New Approach to Marketing. Wiley, 2015.