Toms Shoes

Toms

Company type	For-profit enterprise
Industry	Footwear, eyewear, coffee, clothing, handbags
Founded	2006 (2006)
Founder	Blake Mycoskie
Headquarters	Los Angeles , United States
Area served	Worldwide
Key people	Blake Mycoskie (founder, former owner), Amy Smith (Chief Giving Officer)
Products	Footwear, eyewear, coffee, clothing, handbags
Owner	Jefferies Financial Group Inc, Nexus Capital Management LP, Brookfield Asset Management Inc
Website	toms.com

Toms (presented as TOMS) operates as a for-profit enterprise headquartered in Los Angeles, California. Established in 2006 by entrepreneur Blake Mycoskie from Arlington, Texas, the brand specializes in designing and selling footwear, eyewear, coffee, clothing, and handbags.

In December 2019, ownership of TOMS transferred to its creditors—Jefferies Financial Group Inc, Nexus Capital Management LP, and Brookfield Asset Management Inc—resulting in founder Mycoskie relinquishing his ownership stake.

Company history

During the second season of The Amazing Race in 2002, Blake Mycoskie traveled to Argentina alongside his sister. Several years later, in January 2006, while visiting on vacation, he encountered a volunteer distributing shoes to children. Witnessing numerous children without footwear deeply influenced his entrepreneurial vision.

Mycoskie adapted the traditional Argentine alpargata—a straightforward canvas slip-on shoe—for the North American market with a mission: for every pair purchased, a free pair would be donated to children in developing countries. Inspired by encouragement from Bill Gates, who highlighted the health benefits of wearing shoes, Mycoskie funded Toms Shoes by selling his online driver education business for $500,000.

The company’s name originates from "tomorrow," evolving from the initial "Shoes for Tomorrow Project." He initially contracted Argentine manufacturers to produce 250 pairs, launching sales in May 2006. Following coverage by the Los Angeles Times, demand escalated rapidly, reaching 10,000 pairs sold within the first year. The initial donation of 10,000 pairs was made to children in Argentina by October 2006.

In 2007, Toms introduced the yearly "One Day Without Shoes" campaign to highlight how footwear affects children's lives, securing sponsorships from corporations such as AOL, Flickr, and the Discovery Channel. That same year, Toms received the People's Design Award from the Cooper-Hewitt, National Design Museum.

By 2011, Toms products were available through over 500 retail outlets worldwide. The company also expanded into eyewear using a comparable one-for-one giving approach. By 2012, Toms had donated more than two million pairs of shoes globally. The Daniels Fund Ethics Initiative at the University of New Mexico acknowledged Toms as a prominent example of social entrepreneurship.

In 2014, TOMS launched TOMS Roasting Co., connecting coffee sales with providing safe water—allocating 140 liters per purchase—to families in coffee-producing regions. The following year saw the introduction of the TOMS Bag Collection aimed at supporting maternal health through funding skilled birth attendant training and distributing safe childbirth kits.

In June 2014, Mycoskie sought to partially sell his shares to fuel company growth. On August 20, 2014, Bain Capital acquired a 50% stake in Toms at a valuation of $625 million; after this transaction, Mycoskie’s net worth was estimated at $300 million. He retained half ownership and continued as "Chief Shoe Giver," committing half of his sale proceeds to establish a fund promoting socially conscious entrepreneurship. Bain pledged to match this investment and uphold the company's one-for-one giving model.

"One for one"

Toms operates on a "one for one" principle, pledging to provide a complimentary pair of shoes to a child in need with every product purchased. The countries benefiting from this initiative have included Argentina, Ethiopia, Guatemala, Haiti, Mexico, Rwanda, South Africa, and the United States. Beyond footwear, the company has diversified into eyewear and clothing, capitalizing on word-of-mouth promotion and emphasizing corporate social responsibility. Initially, the charitable organization "Friends of Toms" facilitated volunteer-led shoe distributions overseas. The phrase "One for One" was trademarked by Toms to define this business approach.

This model has drawn criticism from international development specialists who contend it prioritizes consumer goodwill rather than tackling poverty's fundamental causes. Skepticism exists regarding whether donating shoes is as impactful as providing financial aid. In response, Toms redirected 40% of its shoe donation production to nations where it actively distributes shoes and began manufacturing footwear in Kenya, India, Ethiopia, and Haiti.

A 2014 analysis revealed that Toms' donations did not significantly influence local shoe markets but acknowledged constraints related to the study's scale and timeframe. Subsequent research indicated potential adverse economic effects and increased social dependency within recipient areas such as rural El Salvador. Additionally, cross-national data associate imports of used clothing with reductions in local manufacturing and employment across African countries.

In 2019, Amy Smith, TOMS' Chief Giving Officer, declared that the company would transition away from its original "One for One" framework to broaden its philanthropic efforts through impact grants addressing wider social challenges:

"We decided to separate our impact from the One for One model we pioneered and expand our giving portfolio to include impact grants. This enables us to support organizations tackling some of today’s most urgent issues."

Focuses for Corporate Responsibility

Author Daniel H. Pink characterized Toms' business approach as "explicitly designed for purpose maximization," where consumers purchase footwear while simultaneously acting as benefactors. This strategy—often referred to as "caring capitalism"—integrates charitable giving into the core business alongside profit generation. Virgin Group founder Richard Branson praised Toms' method of selecting communities based on economic conditions, health needs, and educational factors while striving to avoid detrimental effects on local businesses. He also highlighted Toms' expansion into eyewear aimed at assisting nearly 300 million visually impaired individuals in developing regions.

Toms directs its shoe donations toward areas where health and social benefits are most significant—for example, Ethiopia—where footwear helps prevent soil-transmitted diseases that disproportionately affect women and children. The One for One initiative in sunglasses supports funding for medical care, eye surgeries, and prescription glasses through collaborations with organizations such as the Seva Foundation. The initial eyewear projects were launched in Nepal, Cambodia, and Tibet. Leigh Grogan explained that the original eyewear designs symbolize the relationship between purchasers and recipients by featuring distinct stripes representing each party along with Toms itself.

Shoe distribution

Toms has provided footwear to children across 70 nations, including the United States, Argentina, Ethiopia, Rwanda, Eswatini, Guatemala, Haiti, and South Africa. The brand’s products are available in more than 500 stores worldwide, such as Neiman Marcus, Nordstrom, and Whole Foods Market, with many shoes crafted from recycled materials.

According to a report by LA Weekly, Toms' production expense per pair ranges between $3.50 and $5.00, highlighting that the donated children's shoes are among the least costly to manufacture. Some critics, including garment-industry writer Kelsey Timmerman and a shoemaker based in Argentina, have accused Toms of exploiting poverty imagery as a marketing tactic.

Employees of Toms engage in "Giving Trips," personally delivering shoes to children in need. In 2006, the company handed out 10,000 pairs in Argentina; by November 2007, 50,000 pairs had been distributed in South Africa. By April 2009, Toms had donated a total of 140,000 pairs spanning Argentina, Ethiopia, South Africa, and the United States. By 2012, the company had surpassed one million pairs donated across 40 countries.

Campus clubs

Across numerous U.S. colleges, students have founded TOMS campus clubs. As of March 20, 2014, there were 281 such clubs throughout the United States and approximately twelve in Canada. For context, Lions Club International—established in 1917—reports having 400 campus clubs distributed over 42 countries.

Partnerships

In 2009, TOMS collaborated with the Charlize Theron Africa Outreach Project to launch limited edition footwear with proceeds supporting education and healthcare initiatives in African regions impacted by AIDS. The company also created shoes adorned with handlebar mustache imagery to back the Movember Foundation. Additionally, TOMS has partnered with charity: water on projects such as WaterForward to supply clean drinking water to underserved communities. Another collaboration with FEED allows customers to contribute twelve meals to underprivileged schools for every pair of shoes purchased while also providing shoes directly to children in need.

The fundamental mission of TOMS is to drive sustainable social change through business practices rather than traditional charity. Founder Blake Mycoskie emphasized at the Second Annual Clinton Global Initiative that his initial inspiration came from podoconiosis—a painful disease caused by walking barefoot on volcanic soil rich in silica particles. This soil-transmitted illness affects the lymphatic system of the lower legs. To support this cause efficiently, TOMS partners with local factories to coordinate shoe donations while optimizing operational workflows.

Influence

The One for One approach pioneered by Toms has motivated numerous companies to embrace similar socially responsible business models. For instance, Warby Parker, established in 2010, donates one pair of eyeglasses for each pair sold. Ruby Cup employs a 'Buy One Give One' strategy for menstrual cups benefiting women in Kenya. Inspired by Mycoskie's book Start Something That Matters, a chiropractic clinic in Bristol donates £1 per appointment to Cherish Uganda. Furthermore, citizenAID North America—launched in 2018—provides life-saving training programs to educators across the United States.

Focus on the Family

In July 2011, Blake Mycoskie, the founder of Tom's, participated in an event organized by the socially conservative organization Focus on the Family. Following public backlash, he issued a formal apology, expressing that both he and the company uphold equal human and civil rights and had not been aware of the group's history prior to attending.

External links

• Official website (U.S.)