Consequences of Ethical Decision Making

Consequences of Ethical Decision Making

TOMS is a company that often comes to mind when consumers are interested in shoes and being philanthropic. In today's competitive and global business world, companies strive to take larger sections of the market place. Businesses are no longer limited by geography. Companies and consumers are more connected ever than before thanks to technology. Blogs, YouTube, Twitter, and other social networking sites have affected socio- cultures, especially in younger generations due to their strong relationship with social technology. Purchasers are more informed about the products and brands they consume. Consumers also have, at their fingertips, the option to examine a company's mission, vision, and values. The availability of this information can influence purchasing decisions and create the desired social change.

The power in the connection between consumerism, technology, culture, and values can be illustrated well by the TOMS company. TOMS began in 2006. The business and brand are the result of an American entrepreneur who was struck with the idea to start a shoe company after his visit to Argentina. Blake Mycoskie, TOMS founder, observed children in Argentina suffering because they did not have shoes. The lack of shoes not only kept kids from doing things like playing, but also kept them from the long walk necessary to go to school. The lack of shoes was creating negative consequences for these people and Blake felt completed to help. Mycoskie developed a concept called "one for one". This organizational foundation meant that for each pair of shoes purchased from TOMS, the company would donate a pair of shoes to someone in need. TOMS shoes has drawn on the empathy of consumers as well as their desire to be socially responsible. This strategy has worked well for TOMS.

TOMS Ethical Framework

Since 2006, TOMS has given away over a million pairs of shoes in over 23 countries. TOMS is a model for the term "conscious consumerism", a term that relates directly to the ethical framework of emotional empiricism (TOMS Blog, 2011). Bagozzi, Sekera, and Hill (2009) explain the concept of ethical empiricism as "...feeling compassion or concern for others and experiencing a compulsion to help another in need" (463). Technology has created a connected world market, "increasingly, a combination of heightened sense of empathy or awareness among consumers, coupled with the increasing significance of world-wide social causes or movements has resulted in consumers who are more interested in consequences of their purchase behaviors" (Brunswick,2010). Mycoskie has married his desire to help others with his drive to be a successful entrepreneur. For consumers, especially the younger demographic, the brand of a product plays a vital role in identifying themselves with the product (Alcaniz et al, 2010). Consumers have an emotional tie to the TOMS brand and the work it does. Consumers too are striving to do some good. Like Mycoskie, TOMS loyal customers are driven by emotional empiricism. This ethical structure is a root of TOMS and part of the consumers' decision-making process as well. Being able to purchase a good product and aiding a charitable cause creates more value for consumers.

Positive Impact of TOMS Ethical Framework

One of TOMS strategies for creating opportunity for consumers to make a positive contribution is its annual event called "One Day Without Shoes". In 2010, 250,000 people from different countries participated in 1,600 different events supported by TOMS. These events are a big part of TOMS marketing campaign; they gain media attention and public interest and support from these events. Free media coverage is free advertising.

Another part of their marketing activities are targeted at college-aged consumers. Historically, students in college are part of social change. "TOMS Campus Clubs" recruit interns to connect students with the brand and its movement. TOMS basis in emotional empiricism provides an outlet for consumers need to help others. There is no doubt that this driv,e based on empathy, is deep and important to many people. Supporting this idea are statistics from the US Bureau of Labor; approximately 62.8 million people volunteered through or for an organization from 2009-2010. This figure includes about 26% of the United States' total population (2010). TOMS builds on this desire, in an ever-growing market, via its consumer strategy. Allowing consumers to purchase their product and contribute to the well-begin of others seems like an altruistic business practice, but it is not without a possible downside.

Negative Impact of TOMS Ethical Framework

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