Asked & Answered

TOMS Shoes Founder an Accidental Philanthropist
Social entrepreneur Blake Mycoskie never suspected his simple plan to make shoes for Argentine children using the proceeds from shoe sales in the United States would catch on. But once word of his “one for one” idea spread, thousands lined up to buy a pair of his simple slip-ons. Mycoskie has sold more than 150,000 pairs since founding TOMS Shoes in 2006, which means more than 150,000 children are free from the social stigma and risk of disease that come with going barefoot. TOMS plans to give 300,000 pairs of shoes to children in need by the end of 2009. “I think TOMS is showing that business and charity, business and public service, don’t have to be mutually exclusive,” he said.

Interview by Austin Bailey, World Ark senior editor

WorldArk: Before you started TOMS, did you have experience in the shoe industry?

BLAKE MYCOSKIE: I had absolutely no experience whatsoever in fashion or shoes. I think sometimes when you don’t have experience you don’t know the rules, you don’t know which ones you’re breaking and you end up creating true innovation.

WA: Why is it TOMS shoes and not Blake’s shoes?

BLAKE MYCOSKIE: When I started out, it was just a project: the Shoes for Tomorrow project, because we’d sell a pair of shoes today and give a pair away tomorrow. We were going to call them Tomorrow’s shoes, but that wouldn’t fit on the tag, so I shortened it to TOMS Shoes. I didn’t anticipate that everyone was going to want to know who Tom is. Really, we’re all Tom. Tom is anyone who buys a pair of our shoes, anyone looking for a better tomorrow.

WA: How did you come up with the design?

BLAKE MYCOSKIE: I was actually in Argentina learning how to play polo of all things, the least noble cause in the world for me to get to Argentina, which goes to show you never know what’s going to happen in your life. The polo players would slip on these shoes called Alpargatas after they removed their boots. Alpargatas are a traditional Argentine shoe worn by everyone for hundreds of years. I thought they were really cool and comfortable. So we took that, and it was the basis for the design of the shoe.

WA: Does TOMS have a focus on sustainability?

BLAKE MYCOSKIE: We are really focusing on the materials we use. One of our collections is 65 percent postconsumer plastic bottles, 35 percent hemp. It’s more sustainable than using organic cotton. It’s just good business now to find ways to make your production and manufacturing process more sustainable.

WA: How does the production of your shoes contribute to economic development?

BLAKE MYCOSKIE: We started in Argentina making shoes in a barn, but we ran into complications with the Argentine government, plus demand rose, so we had to move some of our production to China. We found that China was a great place to make shoes. Contrary to all the negative press, there are a lot of amazing factories in China with great labor standards. Then we started giving shoes in Ethiopia and wanted to make shoes there to create jobs and give shoes that were a better match for the Ethiopian environment. Our production in Ethiopia is going very well, and I actually think that could be the future of our business.

WA: How do you choose the countries and children who get shoes?

BLAKE MYCOSKIE: We initially said yes to everybody, which was chaotic and made lots of my staff go crazy. Now we focus on three criteria: One, does it help a child go to school? In some places, if you don’t have shoes you can’t go to school. Two, does it prevent a specific disease? That’s what took me to Ethiopia. There is a very horrible disease called Podoconiosis (Podo) in southern Ethiopia. Podo is caused by a silica that goes through the pores to destroy the lymphatic system. It’s incredibly debilitating and it ostracizes people from their community. What is amazing is, it is completely preventable with shoes! Lastly, does it promote general hygiene? In areas where children walk on unpaved roads, there is a higher risk of cuts and scrapes that can eventually lead to disease and infection without the proper footwear.

WA: At what point did you realize you wanted to serve your community?

BLAKE MYCOSKIE: I always saw great entrepreneurs spending their lives building profitable, successful businesses, then getting to a certain age and spending the rest of their lives giving back to society and doing philanthropy. I remember thinking that I would probably be a very successful entrepreneur, then at some point I would stop being an entrepreneur and become a full-time philanthropist. I always thought it was work, work, work, work, give, give, give, give. It wasn’t until I created TOMS that I realized I could do both at the same time.

WA: How does the giving aspect of the business affect your financial statement?

BLAKE MYCOSKIE: The model, from a financial perspective, definitely affects our margins greatly. We’re never going to be a shoe company with margins like Nike or Asics. But when your customers become your marketers, you’re not having to spend the millions of dollars on marketing that other companies are. It’s an example of how giving not only makes you feel good, it’s a good business strategy.