Introduction
There is continuous debate about whether businesses must consider the interests of their stakeholders, which include employees, consumers, retailers, and suppliers, or if they should just be concerned with producing profits. When a corporation evaluates the impact of its decisions/operations on the environment, workers, local community, and society, it exhibits socially responsible corporate conduct (Dai et al., 2020). As a result, this paper examines TOMS Shoes’ endeavor to function in an honorable manner, gives advice on how TOMS should preserve ethical work standards, and explains why the firm has to act responsibly and maintain accepted work ethics.
Analysis
Today, the success of any organization is based on how it interacts with the environment, its stakeholders, and the ethical behaviors it exhibits. According to Dai et al. (2020), ethical behavior in a business fosters honesty, openness, and equity, which leads the firm to various obstacles, such as corruption, government penalties, and legal convictions. Being socially responsible requires a corporation or organization to consider not just its net profit but also the effects of its activities on the environment, stakeholders, the local community, and society. Without effective strategic planning on analyzing the influence of firm operations on the mentioned challenges, the company’s existence might be cut short due to conflict of interest caused by many pressures. According to Martin (2018), displaying corporate social responsibility requires acts that gain the trust of both workers and stakeholders, in addition to monetary donations and charitable contributions. Furthermore, a socially responsible corporation follows established norms of behavior while preserving a good working environment (Martin, 2018). As a result, the organization’s activities satisfy stakeholders’ interests while conserving the environment.
TOMS is a shoe manufacturing firm whose major goal is to minimize the number of children who cannot afford fashionable shoes. However, based on the case study, it is clear that TOMS manufactures its shoes and products in Argentina, China, and Ethiopia, all of which have a history of forced and child labor. The corporation may be tempted to hire minors or underpay its employees to increase earnings. This is unethical and socially irresponsible since labor rules and ethics dictate that employees be appropriately rewarded (Marciukaityte, 2018). Furthermore, minors under eighteen should not be part of an organization’s employees, and no corporation should exploit them for cheap labor. Another major issue that TOMS must solve to embrace socially responsible conduct and be environmentally friendly is the environmental effect of its products. According to Dai et al. (2020), a socially responsible corporation’s goal is to preserve the environment for future generations. As a result, TOMS must evaluate its products, implement an efficient waste management strategy, and go greener in terms of energy sources.
Recommended Solution
As previously described, being socially responsible requires that corporations should not only worry about earnings but also execute their operations honorably. Business ethics, according to de Bakker et al. (2019), aids in the regulation of operations as stipulated by labor laws and international codes of conduct. TOMS, for example, is a firm that makes low-cost shoes for disadvantaged children whose parents cannot afford other brands. TOMS manufactures its products in countries such as Ethiopia, Argentina, and China, all of which have high rates of forced and child labor, as evidenced by the case studies. TOMS must follow labor rules that say people under eighteen should not be hired (de Bakker et al., 2019). Furthermore, labor regulations specify the minimum amount of employee salaries for each level. As a result, TOMS would avoid child and forced labor by referring to labor regulations and codes of conduct when making payments and recruiting choices.
Environmental sustainability is inextricably linked to corporate social responsibility. To be socially responsible, TOMS must monitor all of its actions. According to Dzhengiz and Niesten (2019), environmental sustainability refers to the human duty to safeguard and conserve natural resources to support health and well-being. TOMS is a shoe manufacturer that undoubtedly uses materials such as plastics and other substances that, when handled irresponsibly, harm the environment. To reduce the environmental effect of its products, TOMS must recycle old plastic shoes and employ biodegradable materials. Organic canvas for high-quality shoes is one of the company’s recommended raw materials. TOMS may also employ natural hemp and organic cotton, reducing the number of herbicides and insecticides used. Another area of importance for sustainability is proper sewage management. To save the environment, TOMS must have a waste management strategy in place.
Justification for the Recommended Solutions
- Adhering to labor and recruitment laws: TOMS is manufacturing its shoes in Ethiopia, Argentina, and China, which has been linked with forced and child labor. Therefore, the company may be tempted to hire minors for their activities. Moreover, the company may use cheap forced labor, considering resources used to compensate for forced labor. As such, the company needs to reinforce and follow the international labor laws that guide companies on how to go about labor and remuneration. According to Filip et al. (2018), labor laws prohibit employing underage and set a minimum salary/wages that an employee should earn. Going against the set rules in pursuit of higher profits is unethical and may result in harsh consequences for TOMS. The penalties for behaving unethically include conviction, legal fines, or to some extent, the closure of an organization. Therefore, TOMS must follow local and international recruitment and remuneration laws to avoid conflicts with the related agencies/bodies.
- Waste management: Production companies need an appropriate program to handle waste effectively. TOMS company, for example, needs to collect all used or disposed shoes made of plastics for recycling. According to Thamagasorn and Pharino (2019), material recycling is one method many organizations use to cultivate environmental sustainability. Therefore, TOMS will have to collect old plastic shoes that it produces, compile them and recycle them to preserve the environment for the future generation.
- Embracing biodegradable raw materials: Using environmentally friendly raw materials is another way TOMS can use to protect the environment. According to Vikhareva et al. (2021), biodegradable materials rot after some time, unleashing minerals and nutrients into the soil. Therefore, TOMS should use materials such as organic canvas, natural humps, and organic cotton in making shoes instead of plastics and inorganic materials.
- Greener energy sources: Protecting the environment and living things is essential today. According to Pérez-Franco et al. (2020), burning fossil fuels and coal has hastened the rate at which natural resources and the environment is deteriorating. This is evident with global warming and weather pattern changes. Burning fossil fuels produces greenhouse gases that settle on the lower horizon, thus increasing the earth’s temperature thus affecting living things. Therefore, TOMS and other companies need to embrace green energy alternatives such as water, the geothermal, wind, and solar to reduce the rate at which the environment is deteriorating.
Conclusion
TOMS is a shoe manufacturing company dedicated to making it affordable and sometimes give its shoes for free to children whose parent are poor and cannot buy other brands. However, being a production organization, the company faces some challenges in becoming socially responsible and sustainable. As evident in the case, TOMS is manufacturing its shoes in countries with high child and forced labor rates. Therefore, the company may be tempted to hire minors or underpay its workers to maximize production. Moreover, being a production company, TOMS uses fossil fuels and non-biodegradable materials that harm the environment if not handled carefully. From the case analysis, it was found that TOMS need appropriate strategies and methods to conform to set ethical standards and labor laws for the smooth running of the organization. Moreover, the organization needs to consider the effects of its operations and activities on the environment and the lives of humans.
For environmental sustainability and socially responsible, TOMS must embrace green energy sources. Fossil fuels for decades have deteriorated the environment and are the sole reason for increased global warming. Therefore, TOMS’s adoption of green energy sources, such as water, geothermal, solar, and wind, will create a benchmark for other companies, thus mitigating the impacts of fossil fuel use. Aside from green energy sources, TOMS will need to use biodegradable materials to protect the environment. Currently, the company is using plastic materials that are not environmentally friendly; it was proposed that the company employ organic materials such as canvas and natural hump. Finally, TOMS must adhere to labor laws and have an appropriate waste management system. Adhering to labor laws would make TOMS compensate its workers accordingly and make proper recruiting choices. On the other hand, adequate waste management is necessary for the organization to collect its plastic waste for recycling.
References
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