Toms Shoes and Corporate Responsibility

There is simply no denying that businesses are driven by the demands of the consumer, with the responses to those demands most frequently being dictated by the executives who occupy C-Suite positions. Considering the fact that many companies are now adding Chief Sustainability Officers to the C-Suite, it is clear that the demand for sustainable business practices has grown to such a degree that businesses now see the need for an executive whose sole responsibility is to ensure sustainability.

This change to the highest levels of leadership is undoubtedly the result of intelligent consumers wielding their purchasing power in a manner that reflects a specific set of ideals, including the desire for corporate responsibility and sustainable business practices. Perhaps the clearest example of this is in the recent backlash to the practice that Toms Shoes has long championed in its “buy-one-give-one” model.

While there was certainly no ill intent on the behalf of Toms Shoes in adopting the charitable practice of donating a pair of shoes to those in need, the practice has also been recognized as one that does not appropriately address a social problem. In fact, it has been theorized that this practice actually creates more problems than it solves. In using its “buy-one-give-one” practice, Toms Shoes undermines developing economies “by creating an entirely unsustainable aid-based economy.”

With consumers now aware of the unintentional harm that may result from this practice, Toms Shoes has been forced to adopt a new strategy for social responsibility. This is where the addition of Chief Sustainability Officers has become valuable to businesses that wish to properly address social and environmental issues that are important to consumers, all while avoiding the unintended consequences that lead to the kind of backlash Toms Shoes recently endured.

The position is not designed to be one occupied by a figurehead, nor is it one that is meant to simply appease or deceive consumers. The Chief Sustainability Officer (CSO) can effect a great deal of change through the position, making sustainable practices not just commonplace in an organization, but part and parcel to operations. EMC is an excellent example of the manner in which the CSO can institute policies and practices that ensure sustainability at every level of development, and the company’s website demonstrates the transparency that consumers have come to expect from businesses in any industry.

While the CSO position has not yet been instituted to such a degree that companies perceive it as indispensable when compared to positions such as Chief Financial Officer or Chief Operating Officer, it is clear that consumers are consistently holding companies accountable for issues relating to sustainability, and anything that has an adverse impact on profitability is sure to get the attention of executive leadership. Surely it would be best if more companies adopted sustainable practices for more altruistic purposes, but the fact that consumers are forcing this change does not negate the fact that the change is a positive one.