<ul class="summary-list"><li>Serial entrepreneur <a href="https://www.businessinsider.com/category/blake-mycoskie">Blake Mycoskie</a> started <keyword id="364315" type="PERSON" weightage="60" keywordseo="Toms">Toms</keyword> in 2006 <a href="https://www.businessinsider.com/blake-mycoskie-argentina-toms-shoes-2011-09">after visiting Argentina and seeing the impact a pair of shoes could have on a child's life.</a></li><li><a href="https://www.businessinsider.com/category/toms">Toms</a> grew quickly, thanks to publicity from celebrities and social media.</li><li>By 2013, Toms was reportedly making $250 million in sales a year, and in 2014, was valued at $625 million.</li><li>However, the company's sales fell as it struggled to grow beyond <a href="https://www.businessinsider.com/toms-blake-mycoskie-talks-growing-a-business-while-balancing-profit-with-purpose-2016-6">its original canvas shoe and giving model.</a></li><li><a href="https://www.businessinsider.com/exclusive-toms-shoes-creditors-to-take-over-the-company-2019-12">In 2019, a group of its creditors took over Toms.</a></li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul><p><em>Following is a transcript of the <keyword id="21654" type="COMPANY" weightage="60" keywordseo="video">video</keyword>.</em></p><p><strong>Narrator:</strong> Chances are, you once owned a pair of these. That's because TOMS had the perfect product. Its one for one donation model made buying one of it's iconic canvas shoes an act of charity. And for a while, that really worked. By 2013, TOMS was reportedly making 250 million dollars in sales a year and had donated 10 million pairs of shoes since it's launch. Just one year later, the company was valued at 625 million dollars.</p><p><strong>Russ Winer: </strong>It was a brand that resonated with a lot of, especially younger people at the time that were looking for brands that were not sort of traditional corporate kind of brands.</p><p><strong>Narrator:</strong> Entrepreneur, <keyword id="1073742" type="PERSON" weightage="60" keywordseo="Blake-Mycoskie">Blake Mycoskie</keyword>, started the company in 2006 because he wanted to give back. Yeah, Blake, not Tom. There was never actually a Tom behind <keyword id="1833808" type="ORGANIZATION" weightage="60" keywordseo="TOMS-Shoes">TOMS shoes</keyword>. The company was originally named Shoes For Tomorrow then Tomorrow's Shoes and then shortened to TOMS. Mycoskie, who you might recognize from season two of The Amazing Race, was inspired to start the shoe company after a trip to Argentina. The story goes that Mycoskie wanted to help all the kids he saw without shoes. While he was there, a shoe design caught his eye. The Alpargata. Comfortable and affordable, the Alpargata is an everyday shoe for many Argentinians. A local shoe maker helped make an updated version for TOMS and came up with a buy one, give one model. Soon, the shoe was everywhere.</p><p><strong>Russ Winer: </strong>It got some publicity and just grew very rapidly. It had a huge amount of demand at the beginning. Hollywood stars started wearing the shoes and there's all this buzz around the shoe and they grew into what it is today.</p><p><strong>Narrator:</strong> TOMS slip on canvas shoes, became synonymous with the brand turning into what marketing pros call a <keyword id="9233705" type="UNKNOWN" weightage="60" keywordseo="hero-product">hero product</keyword>.</p><p><strong>Russ Winer: </strong>A hero product is a product that is the archetypal brand, all right, for a company, the one that's the most successful that people think of when you think of the company. So, for example, like Nike, it could be Air Jordans, for Porsche, it might be the 911.</p><p><strong>Narrator:</strong> It's like how when you see Hermes, you think of the Birkin bag or associate Heinz with Ketchup. For TOMS, it was the original shoe, based on the Alpargata. Paired with its charitable giving model, TOMS seemed unstoppable.</p><p><strong>Russ Winer: </strong>TOMS branding and marketing was very effective because it was one of the first companies that used this buy one, give one kind of philosophy to try to appeal to not only consumers that liked good looking shoes, but also were interested in companies that had some kind of corporate social responsibility angle.</p><p><strong>Narrator:</strong> People saw it's logo and immediately thought of it's shoes and its charity work for kids. Which could explain why people were willing to spend anywhere from $48 to $78 on a pair of TOMS canvas shoes. But it turns out, having a hero product can backfire.</p><p><strong>Russ Winer: </strong>The hero product for TOMS shoes is the Alpargata variant or model of the shoes and they relied on that one model too long. The hero product can become stale at some point if it's not rejuvenated.</p><p><strong>Narrator:</strong> Not to mention, TOMS slip on shoe design was easy to copy. So, competitors did and they sold them for much cheaper. Skechers even named it's version BOBS and donated two pairs of shoes for every pair sold. All this made consumers question whether TOMS was even worth the price. So, just as quickly as it had become a staple, TOMS became a fad. Even though TOMS had expanded it's product line, people just couldn't see beyond its original canvas shoe. While TOMS shoe donation program had been innovative and interesting when it launched, it became almost mainstream, copied by so many other brands. People also started questioning whether TOMS shoe donations were actually helping anyone. Something that TOMS had contacted an outside research team about looking into back in 2010. The research team found that the program wasn't actually that significant.</p><p><strong>Bruce Wydick:</strong> TOMS was really quick to take the results of the study into consideration so they talked to us about giving away the shoes as a reward for school attendance so kids actually feel like they earned them and they began to develop more alternative kinds of shoes that would last longer.</p><p><strong>Narrator:</strong> TOMS continue to grow its giving program to be more effective. In 2011, TOMS expanded its brand to include sunglasses. Sales from sunglasses went directly to people in developing countries, for treatments like cataract surgery.</p><p><strong>Bruce Wydick: </strong>As a person that has pretty high prescription glasses, I can attest to the fact that, personally, like a lot of people, this is a really impactful intervention for many people. Cataract surgery can restore a life.</p><p><strong>Narrator:</strong> In 2014, Tom started TOMS Roasting Company. It said it would donate a week's worth of clean water for every bag of coffee it sold. The next year, TOMS teamed up with anti-bullying organizations with a line of backpacks. But despite all these changes, when most people saw TOMS, they only thought of it's original product and program. So, TOMS had a hard time growing beyond its hero product and its sales struggled. The company had a harder time regaining control over its business because it had relied so much on wholesale when it first started out. Doing this had helped TOMS build it's brand recognition even faster because its shoes were sold at big department stores like Macy's and Bloomingdale's and even at Whole Foods. But a direct to consumer model has a lot of long term advantages. You have more control over your marketing and inventory and most importantly, over prices. All this can help you control your profit margins. Something that's kind of important when your sales are starting to slump. But instead, TOMS didn't pivot its business model as quickly or strongly as it should have. Its outlook continued to decline in 2019. TOMS had a 300 million dollar loan due in 2020. Credit rating agencies expected it wouldn't be able to pay up. So, is this the end for TOMS? Well, in late 2019, a group of TOMS creditors officially took over the company from <keyword id="6581358" type="UNKNOWN" weightage="60" keywordseo="Bain-Capital">Bain Capital</keyword> and Blake Mycoskie in exchange for debt relief. When Business Insider reached out to TOMS, a representative said that, quote, "The new owners support TOMS future growth and are investing 35 million dollars into the company." Unquote. So, TOMS is definitely looking to rebuild itself. But is there a place for it?</p><p><strong>Russ Winer: </strong>TOMS biggest obstacle right now is just the fact that there is so much competition in the shoe business and some brands have in fact gone bankrupt. If you look at brands like Rock Port, right? Which is a well known brand, take a look at Pay Less Shoes which is a retailer. There's just a lot of competition in this market and very difficult to make a sustainable business.</p><p><strong>Narrator:</strong> So, what should TOMS do?</p><p><strong>Russ Winer: </strong>I think the smartest strategy for TOMS right now actually is to focus less on the corporate social responsibility angle and focus more on product. I think they need to develop more product variety, styles, colors that consumers want to buy and I think that's the area they should focus on.</p><p><strong>Narrator:</strong> And Winer says there's something else TOMS needs to work on.</p><p><strong>Russ Winer:</strong> A lot of successful brands that started as direct to consumer like Warby Parker, like a Casper, like others, Bonobos for example, started only direct to consumer, went to <keyword id="6354851" type="UNKNOWN" weightage="100" keywordseo="retail">retail</keyword>, gave their customers a chance to again experience the brand and today, brand experience is extremely important for consumers to have a strong affinity of the brand. I think TOMS has to do more of that.</p><p><strong>Narrator:</strong> But even if TOMS isn't able to recreate it's original success, it still made a lasting impact on the worlds of business and fashion. Brands having a social mission might be commonplace today, but TOMS was the one that made it mainstream. Despite everything, TOMS might still be the best at it.</p><p><strong>Bruce Wydick:</strong> I'd say TOMS is one of the most nimble organizations that I've worked with as a development economist. They have a whole department that's devoted to impact evaluation.</p><p><strong>Narrator:</strong> In November 2019, TOMS announced that it would be evolving its one for one giving model. TOMS will now be donating one dollar for every three dollars it makes. According to the company, this creates a more flexible and sustainable way of giving.</p><p><strong>Bruce Wydick: </strong>I think TOMS is a learning organization and when it comes to development and poverty interventions, trust me, we're all learning. That's the key.</p><p><strong>Narrator:</strong> So, who knows? With the right product, TOMS could be the next big thing again.</p>Read the original article on <a href="https://www.businessinsider.com/rise-and-fall-of-toms-shoes-blake-mycoskie-bain-capital-2020-3">Business Insider</a>

How Toms went from a $625 million company to being taken over by its creditors

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/575705b09105844d018c7496-2400/gettyimages-496742092.jpg" alt="Blake Mycoskie" data-mce-source="Getty Images/Brad Barket" /><p class="source"><span>Getty Images/Brad Barket</span></p><p class="caption">Blake Mycoskie.</p></div><p></p></div></div>When it launched 10 years ago, TOMS Shoes was one of the first companies to employ the buy-one-give-one model.</p><p>For every pair of shoes a customer purchased, the company promised to donate another pair to a child in need.</p><p>But TOMS quickly became the <a href="http://opinionator.blogs.nytimes.com/2012/05/09/shopping-for-a-better-world/?_r=0">target of criticism</a>, specifically the accusation that by giving away shoes in developing parts of the world, it was <a href="http://knowledge.wharton.upenn.edu/article/one-one-business-model-social-impact-avoiding-unintended-consequences/">disrupting local markets</a>.</p><p>I recently <a href="http://www.businessinsider.com/toms-blake-mycoskie-talks-growing-a-business-while-balancing-profit-with-purpose-2016-6">spoke with TOMS founder</a> Blake Mycoskie, and asked him to address this criticism. His response? "We 100% agree."</p><p>He went on:</p><p style="padding-left: 30px;">We are incredibly diligent to make sure that our shoes are being given in very, very rural areas where families are having to choose between shoes for the uniform or food on the table, and they're choosing food on the table. By no means do we ever want to disrupt a local market.</p><p>Mycoskie also pointed out that "TOMS itself does not put the shoes on people's feet." Instead, they work with charities and nonprofits who are "really focused on improving the quality of life in the people that they serve. So they have the utmost interest in making sure that we're not disrupting anyone in the market."</p><p>In recent years, TOMS has also worked to create jobs in the areas it serves. Mycoskie told me that the company has moved 40% of its supply chain to countries including Kenya, India, Ethiopia, and Haiti.</p><p>To date, TOMS has given away over 60 million pairs of shoes, and it has expanded into bags, eyewear, and coffee.</p><p><strong><a href="http://www.businessinsider.com/toms-blake-mycoskie-talks-growing-a-business-while-balancing-profit-with-purpose-2016-6">Read the full interview with Mycoskie »</a></strong></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/peter-thiel-speech-for-mark-zuckerberg-axel-springer-award-berlin-2016-2">Billionaire entrepreneur Peter Thiel explains precisely how Mark Zuckerberg changed the world</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="RrbDNkMTE6KF4LVuh3LthYN1-O6vJybj" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'RrbDNkMTE6KF4LVuh3LthYN1-O6vJybj',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

The founder of TOMS '100% agrees' with one of the biggest criticisms of his company

<p><a href="http://www.businessinsider.com/creators"><img src="https://static-ssl.businessinsider.com/image/57572cfc8e91c6aa1d22fe22-800-75/the-creators-post-page.png" width="800" height="75" border="0" /></a></p><p></p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57506d7b91058436008c6733-1775/blake%20mycoskie%20toms.jpg" alt="Blake Mycoskie Toms" data-mce-source="John Sciulli/Getty" data-mce-caption="Founder and Chief Shoe Giver of TOMS Blake Mycoskie attends the TOMS for Target Launch Event at Book Bindery on November 12, 2014 in Culver City, California."><p class="source"><span>John Sciulli/Getty</span></p><p class="caption">Blake Mycoskie.</p></img></div><p></p></div></div>In 2015, nine years after founding TOMS Shoes, Blake Mycoskie stepped down from the position of chief executive.<p>He chose as his replacement Jim Alling, who'd previously served as chief operating officer at T-Mobile and held multiple executive roles at Starbucks.</p><p>When I <a href="http://www.businessinsider.com/toms-blake-mycoskie-talks-growing-a-business-while-balancing-profit-with-purpose-2016-6">spoke with Mycoskie</a> recently, I asked him why he relinquished some of his power and what his current role entails.</p><p>According to Mycoskie:</p><p style="padding-left: 30px;">I was CEO by default, but I never was a CEO. I mean I'm a founder, I love the beginning of things. I love working with the creative team, but running a business, dealing a lot with HR, dealing a lot with processes, that's never really been my strength. Once I was in a position where I could bring on and attract world-class CEO talent, like Jim, our CEO, I was super excited to do so.</p><p>He went on:</p><p style="padding-left: 30px;">Success in business is about playing to your strengths as a company and as individuals. And my strengths are definitely in telling our stories, getting people excited about our mission, working with the marketing and creative teams to create the product and the messages we want to share, and now I can focus all of my time on that because now I don't have the responsibilities of being a CEO.</p><p>Mycoskie's decision to select a new CEO is supported by research. <a href="http://www.people.hbs.edu/nwasserman/Rich_vs_King-Proceedings_with_abstract.pdf">One study</a> found that the more control the founder retains, over both the CEO role and the board, the lower the value of his or her equity stake. In other words, retaining total control over your company may stop you from building the most profitable organization possible.</p><p><div>    <iframe src="//instagram.com/p/BGc7onJOWuz/embed/" width="658" height="auto" frameborder="0" scrolling="no" allowtransparency="true">    </iframe></div></p><p>&#xa0;</p><p>In a 2013 <a href="https://www.linkedin.com/pulse/20130123161202-1213-if-why-and-how-founders-should-hire-a-professional-ceo">LinkedIn post</a>, LinkedIn's cofounder Reid Hoffman shared his thoughts on why hiring a new CEO is often a founder's best option. Five years after cofounding LinkedIn, Hoffman hired Jeff Weiner to replace him as CEO.</p><p>Hoffman echoed some of Mycoskie's sentiments about the difference between being a founder and a CEO:</p><p style="padding-left: 30px;">To be a successful growth-stage CEO, you need to be ready to manage a 1,000 person organization and devote substantial time to time consuming things like running meetings and other business process. You can't just do the exciting stuff like making the final call on product and speaking at conferences, while shuffling off everything else to the mythical COO who loves doing all the dirty work and doesn't want any of the credit.</p><p>Mycoskie told me his decision to hire Alling as CEO has worked out well for TOMS: "It's a really great partnership with Jim, business has never been stronger, and our employees are a lot happier, too because they have someone day-to-day that they can go to."</p><p><strong><a href="http://www.businessinsider.com/toms-blake-mycoskie-talks-growing-a-business-while-balancing-profit-with-purpose-2016-6">Read the full interview with Mycoskie »</a></strong></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/presidents-leadership-lessons-robert-gates-2016-2">Former Defense Secretary shares leadership lessons from five US Presidents</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="pjdW1tMDE6IUV-5TZ8Xcm9e24h5au6mu" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'pjdW1tMDE6IUV-5TZ8Xcm9e24h5au6mu',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

The founder of TOMS reveals why he stepped down from the position of CEO

<p><img src="https://static-ssl.businessinsider.com/image/57572cfc8e91c6aa1d22fe22-800-75/the-creators-post-page.png" width="800" height="75" border="0" /></p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/567ae5c4c08a80e01b8b47b3-1200/blake-mycoskie-toms.jpg" alt="blake mycoskie toms" data-mce-source="Vivien Killilea / Stringer / Getty Images" /><p class="source"><span>Vivien Killilea / Stringer / Getty Images</span></p><p class="caption">Blake Mycoskie attends TOMS' Austin Store Opening in March 2014 in Austin, Texas.</p></div><p></p></div></div>Ten years ago, a young entrepreneur named Blake Mycoskie launched <a href="http://www.toms.com/">TOMS Shoes</a>.</p><p>The business model was unorthodox but simple: For every pair of shoes a customer bought, TOMS would donate a pair to a child in need. At the time, the company was one of the first to employ the one-for-one system.</p><p>Today, dozens of other companies have followed in TOMS' footsteps with one-for-one models. TOMS has given away over 60 million pairs of shoes, and they've expanded into bags, eyewear, and coffee.</p><p>Business Insider recently caught up with Mycoskie to ask him about the future of TOMS and to get his thoughts on the way social entrepreneurship is evolving.</p><p><em>This interview has been condensed and edited for clarity.</em></p><p><strong>Shana Lebowitz: How do you describe TOMS and what exactly do you sell? Is it a shoe company or something else? </strong></p><p>Blake Mycoskie: It's something that we've thought a lot about. It's our 10-year anniversary this year. One thing that I think has become really clear is we didn't start a company with a mission, but we had a mission that turned into a company.</p><p>And I think that's a really important distinction because I started TOMS basically to fund the giving that I wanted to do to the children I met in South America. I didn't want to start a charity to be dependent on donations.</p><p>A lot of people now call it social enterprise, conscious capitalism, and there's a lot of labels for what we are. But I think the phrase that "we are a mission with a company" is probably the best way to describe it as opposed to a company that has a mission. </p><p><strong>Lebowitz: Why did you step down from the position of CEO and what's your current role at the company?</strong></p><p>Mycoskie: I was CEO by default, but I never was a CEO. I mean I'm a founder, I love the beginning of things. I love working with the creative team, but running a business, dealing a lot with HR, dealing a lot with processes, that's never really been my strength. Once I was in a position where I could bring on and attract world-class CEO talent, like Jim, our CEO, I was super excited to do so.</p><p>Success in business is about playing to your strengths as a company and as individuals. And my strengths are definitely in telling our stories, getting people excited about our mission, working with the marketing and creative teams to create the product and the messages we want to share, and now I can focus all of my time on that because now I don't have the responsibilities of being a CEO. So it's a really great partnership with Jim, business has never been stronger, and our employees are a lot happier, too because they have someone day-to-day that they can go to.</p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/575705b09105844d018c7496-2400/gettyimages-496742092.jpg" alt="Blake Mycoskie" data-mce-source="Getty Images/Brad Barket" /><p class="source"><span>Getty Images/Brad Barket</span></p><p class="caption">Blake Mycoskie speaks at the Fast Company Innovation Festival in November 2015.</p></div><p></p></div></div></p><p><strong>Lebowitz: What about the decision to sell half the company to Bain?</strong></p><p>Mycoskie: That decision was always kind of a necessary one in order to attract a great CEO. When the company is 100% owned by the founder - no investors, no board - it's very hard to attract amazing executive talent because the founder could wake up one day and be like, "I don't like your shirt color; I want you to change." And that's a real risk to an executive. By having a 50/50 partner I was able to create that security and stability that would attract world-class talent.</p><p>The other thing is our business is growing a lot, in different new ways. The global expansion is one of our biggest focus areas. We're getting into all different types of shoes, not just the main shoe that we originally started with. There's a lot of complexities around supply chain, <keyword id="6354851" type="ORGANIZATION" weightage="60" keywordseo="Retail">retail</keyword> growth. We were entering a phase where there were a lot of new challenges that frankly, I never dealt with.</p><p>So I wanted to have a partner who had helped other consumer-products businesses grow during that time of change and find ways to create the right systems and stuff that would help them.</p><p><strong>Lebowitz: How sustainable do you think a buy-one-give-one company really is?</strong></p><p>Mycoskie: I think it's incredibly sustainable. Built into our cost structure is the intention to provide great benefit to our customers because they feel like they're getting to be part of something more than just a transaction. </p><p>More and more understand what the impact of their purchases are on the rest of the world. By doing that, we're able to form more loyal customers; we're attracting new customers. While we spend a ton of money on giving, we also feel that there's a real return on that investment. </p><p><strong>Lebowitz: Do you think most customers are aware of and motivated by the giving element when they buy TOMS shoes?  </strong></p><p>We did some research with the Boston Consulting Group last year and we actually found that only 50% are. That was really surprising to us.</p><p>But then when you ask those people, when you tell them about the mission, you say, "Are you more likely to buy more products?" The answer is resoundingly yes. So one of our big challenges as a business is how do we share our story, how do we share our mission in more ways?</p><p>We're really investing a lot in telling that story more in store displays. We've installed virtual reality headsets in all of our stores so people can go on a virtual giving trip and see the children that they're helping in countries like Peru, in Colombia. That's one of our big areas of focus right now, is telling our story more, not taking it for granted that people already know it.</p><p><strong>Lebowitz: How do you feel about other companies employing a similar buy-one-give-one model, since TOMS was one of the first to do it? </strong></p><p>Mycoskie: I love it. I think it's a testimony to the influence that we're having on business. My goal is very simple for TOMS. I want to build the most inspirational and influential company in the world.</p><p>We want our business model to influence how other people are doing business. Because if we can influence other businesses to incorporate giving or one-for-one into their business it will help far more people than whatever we do on our own.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5759dbe3910584cc008c8208-2400/blake mycoskie jennifer garner.jpg" alt="Blake Mycoskie Jennifer Garner" data-mce-source="John Sciulli/Getty" data-mce-caption="Blake Mycoskie and Jennifer Garner attend the TOMS for Target in November 2014 in Culver City, California." /><p class="source"><span>John Sciulli/Getty</span></p><p class="caption">Blake Mycoskie and Jennifer Garner attend the TOMS for Target in November 2014 in Culver City, California.</p></div><p></p></div></div></p><p><strong>Lebowitz: In what ways do you think social entrepreneurship has changed since you founded TOMS? </strong></p><p>Mycoskie: If you look at the majority of entrepreneurship, it's really happening for people in their 20s, before they have families and all different types of responsibilities. They're able to take more risks in their 20s. </p><p>That is also the demographic that wants to make purchases that count more, wants to make purchases that are conscious. So it's not surprising that the same patterns and changes in consumer behavior is being seen in the types of companies that these entrepreneurs are creating. </p><p>That's also one of the reasons why I'm investing heavily into social entrepreneurs of the future, because I want to make sure that the movement that we have helped has long-term sustainability. And that more and more companies are getting funded and getting an opportunity to become the next TOMS.</p><p><strong>Lebowitz: How do you decide which funds to invest in? What makes you feel like it will be sustainable, and how do you balance their purpose with their ability to earn a profit?</strong></p><p>Mycoskie: We always look first at: Is the company's purpose and mission in the DNA of the product or service or company? It can't be something that they're adding on. It has to be the reason they exist. </p><p>If it is at the core, then we just look at them like any other business. Is this profitable? Does this have a good business plan? Is the management team experienced? Do they have a special niche in the market? </p><p>But first we want to make sure that the purpose is really sound.</p><p><strong>Lebowitz: Do you think TOMS could do what it does if it were a publicly traded company? </strong></p><p>Mycoskie: I do. Bain did not invest in us because they thought it was charity. They invested in us out of a fund, and they expect to get the same returns that they promised their partners. They see our giving and our purpose as a competitive advantage. </p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5759df5b9105842a008c8170-2000/blake mycoskie family.jpg" alt="Blake Mycoskie family" data-mce-source="Randy Shropshire/Getty" data-mce-caption="Blake Mycoskie, wife Heather, and son Summit at the partnership celebration between TOMS and Oceana in March 2016." /><p class="source"><span>Randy Shropshire/Getty</span></p><p class="caption">Blake Mycoskie, wife Heather, and son Summit at the partnership celebration between TOMS and Oceana in March 2016.</p></div><p></p></div></div></p><p><strong>Lebowitz: Why did you get into social entrepreneurship as opposed to a nonprofit?</strong></p><p>Mycoskie: I'm an entrepreneur. I started my first company at 19; I started five companies before TOMS. I love using business as a way to solve problems.</p><p>I think that there's a lot of important need for charity and nonprofit work in the world, but I felt like if I could use business - something I was really good at - to solve problems like kids needing shoes or people needing eye care surgeries or prescription glasses, that was a better match.</p><p><strong>Lebowitz: So you feel like you can make a bigger impact on the problems that you're trying to solve as a business?</strong></p><p>Mycoskie: For sure, I think that's a lot more sustainable than asking people for money. Because you can ask people for money, say once or twice, and they'll support you because they believe in your mission and what you're doing, but ultimately they might feel a need to give their charity dollars to someone else.</p><p>Whereas if you create a long-term customer of your brand and every time they're buying something they're getting something that they want and they need, then that's a much longer-term revenue style than just asking for money or donations.</p><p><strong>Lebowitz: Can you speak to some of the criticisms that TOMS has received - that TOMS doesn't alleviate poverty for more than say a few months, or that the buy-one-give-one model can hurt local people who are trying to sell their shoes and their products? </strong></p><p>Mycoskie: To alleviate poverty you need education, jobs, and basic health needs. We use our shoes to protect children's feet from foot disease; we use our shoes to help complete the school uniform where some families can't afford the shoes for the uniform. So that's the education piece.</p><p>And then the job creation we're trying to do more and more. Since some of that early criticism, we have responded and we moved 40% of our supply chain for giving shoes to countries that we give in. Today we make shoes in Kenya, we make shoes in India, Ethiopia, Haiti, and all of this is a way to create more jobs.</p><p>But even with all those things that we're doing, by no means is TOMS a single-stop solution to alleviation of poverty. It's a very complex thing to take someone who is living in poverty and help them progress their life to a different economic status.</p><p>In terms of the criticism towards disrupting local markets, that's one where we 100% agree. We are incredibly diligent to make sure that our shoes are being given in very, very rural areas where families are having to choose between shoes for the uniform or food on the table, and they're choosing food on the table. By no means do we ever want to disrupt a local market.</p><p>TOMS itself does not put the shoes on people's feet. We work with charities and nonprofits. Our giving partners, they're all leaders of nonprofits and charities and they're really focused on improving the quality of life in the people that they serve. So they have the utmost interest in making sure that we're not disrupting anyone in the market.</p><p><strong>Lebowitz: How are those shoe plants in Haiti, Kenya, India, and Ethiopia doing? </strong></p><p>Mycoskie: Each of them has their own challenges, but we're making millions of shoes in these countries now. We went from 0% in 2013 to now 40% of our new shoes are being made in these given countries. And we're finding that from a business perspective, it actually financially is beneficial because we're saving money on the cost of shipping the shoes all over the world when we can make them and give them in the same country.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5759e0b852bcd020008c8205-2400/blake mycoskie eyewear launch.jpg" alt="Blake Mycoskie eyewear launch" data-mce-source="Michael Kovac/Getty" data-mce-caption="Blake Mycoskie at the celebration of the One For One TOMS eyewear product launch in June 2011 in Santa Monica, California." /><p class="source"><span>Michael Kovac/Getty</span></p><p class="caption">Blake Mycoskie at the celebration of the One For One TOMS eyewear product launch in June 2011 in Santa Monica, California.</p></div><p></p></div></div></p><p><strong>Lebowitz: You've mentioned that you took a sabbatical a few years ago because the company at that point was more focused on process than purpose. Could you could elaborate on that?</strong></p><p>Mycoskie: As soon as you're growing so fast, you're having to think about hiring people who have the right résumé and right technical experience. And I think we hired a lot of great people during that time frame that had the technical experience that helped us and allowed us to scale and grow. But a lot of the people who were making big decisions for the company and technically running the business I don't think were as aligned to our original purpose as I would have liked them to be.</p><p>I just had a moment where I really needed to question like, is this the right way for me personally, and for the business? Do we have the right people on the bus?</p><p>After taking almost a year off, I recognized I was as passionate about TOMS as I was in the early days, but we needed to make some changes, we needed to get everyone refocused back on our mission and purpose, which would also require making some executive changes as well. That's a big part of why I partnered with Bain.</p><p><strong>Lebowitz: Since then you've expanded into the coffee business. Why?</strong></p><p>Mycoskie: That connects to this goal and desire to create more jobs in the countries that we serve. I wanted to continue to create more jobs and I also wanted to find a way to enter a business that would be very disruptive and different than our shoe business.</p><p>Coffee I felt would be a great one to do it in, because the coffee industry is going through kind of a radical transformation with all these new-wave coffee shops like Stumptown, Intelligentsia, Blue Bottle. I think we can source coffee of the same quality as them, and at the same time use coffee as a way to create more of a community in our stores, and allow TOMS to be experienced in people's homes in a different way and our giving model to be experienced in a different way. </p><p><strong>Lebowitz: If you fell on very hard times, would you give up the buy-one-give-one model or is it core to the business?</strong></p><p>Mycoskie: It's not only core to the business or brand, but now we have protected it forever. Part of the transaction with Bain was that even if it's Bain or another potential partner down the road, that model will always be done. Good times or bad times, one-for-one will always be a part of Toms.</p><h3><a href="http://www.businessinsider.com/creators">Read more stories about the 100 business visionaries who are creating value for the world.</a></h3>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/classic-mens-shoes-business-office-2014-4">5 Classic Men's Shoes For Work And Play</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="8yeHlvajp8oxNVfYncWyv4nTSkJShDYH" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', '8yeHlvajp8oxNVfYncWyv4nTSkJShDYH',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

The founder of TOMS Shoes talks growing a business, social entrepreneurship, and balancing profit with purpose

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/542aefaceab8ea4b51c17591-1131-848/blake-mycoskie-toms-2.jpg" border="0" alt="blake mycoskie toms"><p class="source"><span>Vivien Killilea / Stringer / Getty Images</span></p><p class="caption">TOMS founder Blake Mycoskie believes success comes from following your passion.</p></img></div><p></p></div></div>Blake Mycoskie, the 38-year-old founder and chief shoe giver of TOMS, was struck by the idea for his business while on a <a href="http://www.businessinsider.com/blake-mycoskie-argentina-toms-shoes-2011-09">farm in Argentina</a>.</p>
<p>Eight years and over 100 million shoes later, his company is <a href="http://www.businessinsider.com/toms-expanding-into-100-billion-coffee-market-2014-4">expanding into coffee</a>. (Not to mention that he's one of Business Insider's <a href="http://www.businessinsider.com/the-sexiest-ceos-alive-2014-9">sexiest CEOs</a>.)<span style="line-height: 1.5em;"><br /></span></p>
<p>When we asked Mycoskie - whose company hinges on a one-for-one giving model where each purchase by a consumer funds an equivalent gift to people in need - what he wishes he'd known about money in his 20s, he told us:</p>
<p style="padding-left: 30px;">In my 20s I wish I knew that the best advice for any person is to follow their passion as opposed to chasing money. I've seen time and time again that the people who foster their true passions and true callings are the ones that end up the most successful.</p>
<p style="padding-left: 30px;">It's hard in your 20s not to worry about money, but to focus on making sure you do something you love. Today, I feel like every time I've made a decision at TOMS that I'm passionate about and improves someone's life, the company grows and makes more money.</p>
<p>If, however, you don't <em>have</em> a strong passion, you may want to check out what Tim Ferriss has to say about <a href="http://www.businessinsider.com/tim-ferriss-money-advice-2014-9">the value of having strong skills</a>.</p>
<p>Find out what other <a href="http://www.businessinsider.com/what-ceos-wish-they-knew-about-money-2014-9" target="_blank">successful people wish they'd known about money</a> in their 20s.</p>

What The Founder Of TOMS Wishes He Knew About Money In His 20s

<p><div class="KonaFilter image-container float_right"><div class="image"><img src="https://static-ssl.businessinsider.com/image/5339e900ecad043214e58c3a-1200-924/blake-at-toms-abbot-kinney-store.jpg?maxX=480" border="0" alt="Blake at TOMS Abbot Kinney Store" width="480" style="float: right;" /><p class="source"><span>Courtesy of TOMS</span></p><p class="caption">Blake Mycoskie, CEO of TOMS</p></div><p></p></div>Why would a shoemaker get into coffee? Because, as TOMS CEO Blake Mycoskie says, the same conscious consumers that love his slip-ons will dig his beans. </p>
<p><span>In Mycoskie's words, TOMS is a "giving company," one based around a "one-for-one" model of giving a product away for every one purchased. </span></p>
<p><span>It all began in 2006 with TOMS shoes. For each pair purchased, a pair went to the developing world. In 2011, TOMS expanded into eyewear. For each pair of frames purchased, someone in the developing world received glasses or vision-saving medical treatment. </span><span style="font-size: 15px; line-height: 1.5em;">And last month, TOMS moved into coffee. With each bag purchased, </span><span style="font-size: 15px; line-height: 1.5em;">TOMS gives a week of clean water to someone in need.</span></p>
<p><span style="font-size: 15px; line-height: 1.5em;"><span>The giving doesn't only help communities in the developing world, </span></span><span style="line-height: 1.5em;">it's also good for the TOMS business. </span><span style="line-height: 1.5em;">While the company doesn't disclose revenue, it's grown rapidly since 2006 and now employs more then 400 people and sells in over 25 countries. The giving has ramped up accordingly: The company says that by the fourth quarter, it will have given away more than 20 million shoes. </span></p>
<p><span>With coffee, TOMS is entering a vast, crowded space. As a market, coffee </span><span style="font-size: 15px; line-height: 1.5em;">is worth more than </span><a href="http://www.businessinsider.com/facts-about-the-coffee-industry-2011-11?op=1">$100 billion worldwide</a><span style="font-size: 15px; line-height: 1.5em;">, making it the second-most valuable commodity after oil. </span></p>
<p><span style="font-size: 15px; line-height: 1.5em;"><span>TOMS aims to capitalize on the current </span>trend in America of <a href="https://imbibemagazine.com/Coffee-s-Third-Wave" target="_blank">artisanal</a> coffee roasters. With upmarket brands like<span> Stumptown, Blue Bottle, and Intelligensia, </span>the bean is held in the same esteem as the wine grape</span><span style="font-size: 15px; line-height: 1.5em;">. TOMS coffee wants to land on that same premium shelf, aided by a distribution deal with Whole Foods. <div class="KonaFilter image-container float_right" style="width:380px"><div class="image"><img src="https://static-ssl.businessinsider.com/image/533edef46da81164670e8db8-1200-1500/toms%20coffee%20front.jpg" border="0" alt="toms coffee front" width="380" style="float: right;" /><p class="source"><span>Drake Baer</span></p></div><p></p></div></span></p>
<p><span style="font-size: 15px; line-height: 1.5em;">So why would you choose TOMS coffee over, say, Stumptown? Mycoskie argues that the one-for-one model makes for a feel-good, easy purchase. </span></p>
<p>"It's the original argument for TOMS shoes. People are going to buy canvas slip-on shoes [at] a certain time of year," he says, noting that the canvas-shoe market had been crowded with undifferentiated brands like <span style="font-size: 15px; line-height: 1.5em;">Vans, Keds, Converse, and Sperry. "</span><span style="font-size: 15px; line-height: 1.5em;">So here comes along TOMS and now you can buy a canvas shoe that, arguably, is as comfortable or more comfortable (as the others) and the price is about the same, but you're also now helping someone get a pair of shoes."</span></p>
<p><span style="font-size: 15px; line-height: 1.5em;">The move into coffee, he acknowledges, is a bit surprising. After all, shoes and glasses are both apparel - why launch a consumable? </span></p>
<p><span style="font-size: 15px; line-height: 1.5em;">That was the question he tried to address with his senior leaders when he made his original pitch 10 months ago. </span></p>
<p>"I had to try to build consensus among the board and my executive team that our next product should be coffee," Mycoskie says. </p>
<p><span style="font-size: 15px; line-height: 1.5em;">His angle was two-fold. </span><span style="line-height: 1.5em;">From a branding perspective, a bag of coffee beans is more constant than a pair of summer shoes. While a TOMS loyalist might buy a single pair of new shoes ever year, she'll buy coffee with her weekly groceries.</span><span style="font-size: 15px; line-height: 1.5em;"> And coffee, of course, is an every-morning habit for <a href="http://www.usatoday.com/story/money/business/2013/04/09/coffee-mania/2069335/" target="_blank">83% of Americans</a>, which gives TOMS the opportunity to be a part of a <span style="background-color: #ffffff;">daily ritual. </span></span></p>
<p><span style="background-color: #ffffff;"><span style="font-size: 15px; line-height: 1.5em;">There's social impact inherent to the supply chain, as well. </span><span style="font-size: 15px; line-height: 1.5em;">For seven years, TOMS has been giving shoes to people in countries like Peru, Guatemala, Malawi, and Rwanda. As a result, TOMS has infrastructure in those countries. </span></span></p>
<p><span style="font-size: 15px; line-height: 1.5em; background-color: #ffffff;">Where are some of the world's best coffee beans found? Those same countries.</span></p>
<p>"The epiphany was in Rwanda when I was meeting with coffee farmers," Mycoskie says. "And I'm thinking this is really cool - by trading directly with this guy who has like 80 coffee trees in his family's name, we can make sure he's getting the best price rather than going through some big export group." </p>
<p><span style="font-size: 15px; line-height: 1.5em;">This is where the social impact couples with the product quality. If you pick up any bag of snob-worthy coffee, you'll find that it's "single sourced," an idea in coffee that comes from the world of wine. </span></p>
<p>"Instead of blending grapes from all over the place, they come from one hill in Bordeaux," <span>Mycoskie</span> says, and it's the same thing with coffee. "If you can single-origin source from a single country and not have it be blended all around, you can get higher quality and you can give people different tastes. Like you'll get a very specific taste in this Guatemalan medium roast versus the Peruvian or versus the Malawi."</p>
<p>What about the taste itself? The Guatemalan variety that <span>Mycoskie sips is light and caramelly. </span></p>
<p>"With the medium roast, and I've learned a lot about coffee this past year, you don't get that burnt after taste or bad breathe - it's more like having a tea," he says, holding the cup reverently. "That's yummy." </p>

Why Shoemaker TOMS Is Getting Into The $100 Billion Coffee Market

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5405e4d46bb3f7523a44e2f4-1199-899/mark-cuban-american-music-awards-2.jpg" border="0" alt="mark cuban american music awards"><p class="source"><span>Jason Merritt / Getty Images</span></p><p class="caption">Billionaire entrepreneur and investor Mark Cuban.</p></img></div><p></p></div></div>Billionaires and CEOs have something in common with the rest of us: They didn't know everything in their 20s.</p>
<p>The people who start and run awesome companies, write best-sellers, and become household names haven't always known what was best for their money. How do we know? We asked them.</p>
<p>From investor Mark Cuban, who laments his misuse of <a href="http://www.businessinsider.com/studies-help-explain-why-credit-cards-make-us-spend-more-2014-7" target="_blank">credit cards</a>, to TOMS founder Blake Mycoskie, who cautions against chasing money, keep reading to find out how investors, CEOs, authors, and other highly successful people answered the question: What do you wish you'd known about money in your 20s?</p>

What 9 Successful People Wish They'd Known About Money In Their 20s

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5320b3fcecad044c152ef2dc-852-639/toms-coffee.png" border="0" alt="Toms coffee" /><p class="source"><span><a href="https://www.facebook.com/toms/photos/a.62401256761.71621.8416861761/10151974361876762/?type=1&amp;theater">Facebook/Toms</a></span></p></div><p></p></div></div>TOMS is expanding into the coffee business. </p>
<p>The shoe company says it will donate a week's worth of clean water to a person in need for every bag of coffee sold.</p>
<p><span style="line-height: 1.5em;">TOMS Roasting Co. is offering six coffee varieties with beans sourced through direct trade efforts in Rwanda, Honduras, Peru, Guatemala and Malawi, according to the company.</span></p>
<p><span style="line-height: 1.5em;">The $12.99 bags are already available on the TOMS </span><a href="http://www.toms.com/single-origin-malawi-roast/p">website</a><span style="line-height: 1.5em;">.</span></p>
<p><span style="line-height: 1.5em;">The coffee will also be sold at Whole Foods nationwide and at TOMS "cafes" around the world.</span></p>
<p><span style="line-height: 1.5em;">TOMS founder Blake Mycoskie "conceived the cafe-stores as more than a <keyword id="6354851" type="ORGANIZATION" weightage="100" keywordseo="Retail">retail</keyword> outlet, similar to the first one that opened in 2012, in Venice, Calif., near his home, offering yoga classes, movie nights and crafts evenings in addition to sales of shoes, eyeglasses and now Toms coffee," the New York Times' Stephanie Strom <a href="http://www.nytimes.com/2014/03/12/business/turning-coffee-into-water-to-expand-a-one-for-one-business-model.html?_r=0">reports</a>. </span></p>
<p><span style="line-height: 1.5em;">TOMS plans to open more cafe-stores in foreign countries, including South Korea, Dubai and Amsterdam, and later expand in the U.S., according to the Times.</span><span style="line-height: 1.5em;"> </span></p>
<p><span style="line-height: 1.5em;">Every cup of coffee sold in the cafes will supply a day's worth of clean water to a person in need, the company said. </span></p>

TOMS Shoes Is Now Selling Coffee In Exchange For Clean Water

<p><div class="KonaFilter image-container float_right"><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5461127a6da811f31d3cf8ac-1200-924/jennifer-lopez-vmas.jpg?maxX=600" border="0" alt="jennifer lopez vmas" width="600"><p class="source"><span>Michael Buckner/Getty Images</span></p><p class="caption">Jennifer Lopez.</p></img></div><p></p></div>Jennifer Lopez knows a thing or two about money.</p>
<p>After years in the entertainment industry, Lopez is a masterful businesswoman who is <a href="http://www.celebritynetworth.com/richest-celebrities/singers/jennifer-lopez/">worth about $300 million</a><span style="line-height: 1.5em;">. </span></p>
<p>Along with her platinum albums, she's made millions from movie roles, endorsement deals, clothing and fragrance lines, and as a judge on hit TV show "American Idol." </p>
<p>What has she learned from all that financial success? <a href="http://time.com/money/3558680/jennifer-lopez-true-love-career-advice/">Time</a> pulled out some of the most poignant career lessons in her new book "<a href="http://www.amazon.com/True-Love-Jennifer-Lopez/dp/0451468686">True Love</a>," including a powerful point about money: "Don't let money make you complacent."</p>
<p>"Lopez says her parents, who held down multiple jobs to be able to send her and her sisters to Catholic school, were an early source of inspiration and taught her that hard work is about more than financial prosperity," writes <a href="http://time.com/money/3558680/jennifer-lopez-true-love-career-advice/">Time</a>, which presents this excerpt from the book:</p>
<p style="padding-left: 30px;">There was a certain hustle I grew up with, a hustle that I learned from watching my parents. They showed me that you put your head down and work - you work for a living and then, when you're making a living, you still don't stop … We don't stop working because we have money in the bank - we do what we do and we keep on doing it.</p>
<p>Lopez's perspective is particularly interesting when we consider it in the larger landscape of what being wealthy really means. For many of us, it means having enough money to stop working and <em>be</em> complacent, although time and time again, successful people - like <a href="http://www.businessinsider.com/blake-mycoskie-toms-money-advice-2014-9">TOMS founder Blake Mycoskie</a> - highlight the disconnect between working for money and achieving success.</p>

Here's The Critical Money Lesson That Shaped Jennifer Lopez's Career

<p><div class="KonaFilter image-container float_right"><div class="image"><img src="http://static3.businessinsider.com/image/5261a1f6eab8eaa2169ec8c4-601-450/richardbranson-3.jpg?maxX=480" border="0" alt="Richard_Branson" width="480" /><p class="source">Wikipedia</p><p class="caption">Executives like <keyword id="58954" type="PERSON" weightage="60" keywordseo="Richard-Branson">Richard Branson</keyword> are making an effort to spread social good.</p></div><p></p></div><em>This post is sponsored by <a href="http://www.chivas.com/" target="_blank">Chivas</a></em><em>. </em></p>
<p>Blake Mycoskie found his calling during a trip to Argentina.</p>
<p>Struck by the sheer number of children living in such dire poverty that they lacked even shoes, Mycoskie decided to take action. His solution was as simple as it was innovative: He founded <a href="http://www.toms.com/" target="_blank">TOMS</a>, a for-profit company that donates a pair of shoes for every pair purchased by consumers.</p>
<p>Mycoskie dubbed this strategy <a href="http://www.toms.com/our-movement/l" target="_blank">One for One</a>, and has since expanded his offering to include eyewear. As of today, <keyword id="364315" type="PERSON" weightage="60" keywordseo="Toms">TOMS</keyword> has delivered over 10 million pairs of shoes to children in need in over 60 countries. </p>
<p>Giving back doesn't just affect those in need. Businesses can reap substantial benefits from social good, as well. By building a brand with a reputation for social good, TOMS has earned an estimated $40 million in revenue to-date and become one of the most recognized and trusted brands among the coveted millennial demographic.</p>
<p>And TOMS is hardly alone. Virgin Group founder Richard Branson also chose to give back by creating the non-profit foundation <a href="http://www.virgin.com/unite" target="_blank">Virgin Unite</a> to mobilize volunteers around the globe for social good. Virgin Unite's guiding principle is simple: "When you give freely without expectations or attachments, you will receive, often even greater in value, and not necessarily from the same source."</p>
<h2><strong>Getting Out Of The Office</strong></h2>
<p>Social good isn't limited to brands with global reach. Small businesses are discovering that giving back can affect their bottom line as well as their communities.</p>
<p><strong></strong>Acts of social good take companies out of the office and into the local community. For small businesses, this is a great way to interact with their customer base. In Anne Arundel County, Md., Kevin Crysler led the employees of his Mr. Handyman franchise in renovating a local fire station. Doing so allowed his small business to engage with potential customers, <a href="http://www.capitalgazette.com/bowie_bladenews/news/local-company-gives-back-to-community/article_57b0e92d-52ab-5862-a71c-4962d1ce6684.html" target="_blank">gain local media attention</a>, and create a positive impact on his community's first responders, all without spending a dime of his marketing budget.   </p>
<h2><strong>Credibility Is King</strong></h2>
<p>Consumers are keenly aware of the role businesses play in the social ecosystem. <a href="http://www.conecomm.com/stuff/contentmgr/files/0/fdf8ac4a95f78de426c2cb117656b846/files/2013_cone_communicationsecho_global_csr_study.pdf" target="_blank">A 2013 study</a> by Cone Communications and Echo research revealed that a staggering 82% of U.S. consumers consider a company's approach to social good when making a purchase. This is particularly true among two notoriously hard-to-reach demographics: millennials and moms.</p>
<p>It's no accident that Google - the "don't be evil" company - is one of the most trusted brands among these demographics. The search giant is committed to socially conscious innovation, and their <a href="http://www.google.com/green/" target="_blank">Google Green</a> and <a href="http://www.google.com/giving/" target="_blank">Google Giving</a> projects have helped cement their brand's reputation as credible, trustworthy, and socially aware.</p>
<h2><strong>Even Your Employees Will Thank You</strong></h2>
<p>Though Google tops the list of best companies to work for, software titan <a href="http://www.sas.com/company/csr/index.html" target="_blank">SAS</a> is close behind. One key reason for this is a shared commitment to corporate responsibility. SAS employees can participate in a variety of social outreach programs that range from education to environmental sustainability. By giving employees an avenue for getting involved, these companies enjoy higher rates of employee engagement and overall satisfaction. And it's generally true that happy employees are more innovative, energetic, and productive.</p>
<p>Whether a company's interests are local or global, making the decision to give back can have a seismic impact on its community and organization. There's no better way to earn the trust and admiration of a customer base, invigorate the workforce, and try to change lives for the better. Because as Richard Branson said, "doing good is good for business."</p>
<p>Find out <a href="http://www.businessinsider.com/sponsor-posts">more about Sponsor Posts</a>. </p>

These Entrepreneurs Have Made Giving Back A Huge Part Of Their Companies' Success

The Business Insider 100: The Creators - ranked 1 to 100

The Business Insider 100: The Creators - from A to Z

<p><span style="line-height: 1.5em;"><div class="KonaFilter image-container float_right"><div class="image on-image"><img src="http://static4.businessinsider.com/image/528241b9ecad042b519f9e9a-1200-924/lululemon-founder-chip-wilson.png?maxX=480" border="0" alt="Lululemon founder Chip Wilson" width="480" /><p class="source">YouTube/lululemon</p></div><p></p></div>After a rough year that saw a scandal over sheer yoga pants, the departure of its popular CEO, and <a href="http://www.businessinsider.com/chip-wilson-on-sheer-yoga-pants-problem-2013-11">offensive comments</a> from its founder Chip Wilson, <keyword id="1639331" type="COMPANY" weightage="60" keywordseo="Lululemon">Lululemon</keyword> announced a much needed management shakeup. </span></p>
<p>Not only is a <a href="http://www.businessinsider.com/lululemon-has-a-new-ceo-2013-12">new CEO, Laurent Potdevin</a> stepping in, but the often controversial Chip Wilson will no longer be Chairman, though he'll maintain a board seat.</p>
<p>"I will be reporting to the board and not to Chip," Potdevin <a href="http://online.wsj.com/news/articles/SB10001424052702303330204579248612299280816?mod=WSJ_mgmt_LeftTopNews">told the Wall Street Journal</a> in an interview. </p>
<p>That's key. Wilson nominally stepped back when he gave up his position as CEO, but was still an outsize presence at the company he created. His presence and influence <a href="http://online.wsj.com/news/articles/SB10001424052702303330204579248612299280816?mod=WSJ_mgmt_LeftTopNews">created significant friction</a> with outgoing CEO Christine Day. </p>
<p>Beyond the PR issues, the company faces real competitive problems. There's a perception that quality has declined, and lower priced competitors like Gap's Athleta are becoming increasingly popular.</p>
<p>There are a few reasons to think that Potdevin, formerly President at Toms Shoes, CEO at Burton Snowboards, an an executive at LMVH, might be the guy to help the company turn things around.</p>
<ul>
<li>Wilson stepping back is at minimum good news on the public relations front, given his tendency towards gaffes. </li>
<li>It also signals that Potdevin will have more autonomy - Wilson once put an Ayn Rand quote on the company's bags, sparking an uproar, without his CEO's knowledge. Potdevin could be the first outsider to have real control.</li>
<li>According to Brian Sozzi, CEO and Chief Equities <a href="http://beluscapitaladvisors.com/">at Belus Capital Advisors</a>, he'll be an "easy sell" to the Lululemon customer base after coming from the socially responsible Toms brand, and could help smooth over Wilson's flubs. </li>
<li>"He's an operations guy," Sozzi says, "this is a critical time for Lululemon, it has to ensure its brand message (well-made technical product) is able to be driven consistently on an increasingly global scale. The new CEO has an extensive background in ground level retail operations."</li>
<li>Potdevin has already taken over from a larger than life founders of iconic brands more than once, replacing Jake Burton Carpenter at Burton Snowboards in 2005, then getting hired by Toms Shoes founder Blake Mycoskie to run the business. </li>
</ul>

Lululemon's Controversial Founder Is Taking A Big Step Back And It's Great For The Company

<p><div class="KonaFilter image-container click-to-enlarge"><div class="image on-image"><a title_source="Tina Fineberg/AP/Business Insider" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/542185736da811b644d1903d-960/toryburch-1.jpg"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/542185736da811b644d1903d-1200-800/toryburch-1.jpg?maxX=1200" border="0" alt="Tory Burch" width="1200" /></a><p class="source"><span><a href="http://www.apimages.com/metadata/Index/Weiner-Women-Politicians/c74c2849285048efb7683bf4fdb3a1bf/74/0">Tina Fineberg/AP/Business Insider</a></span></p></div><p></p></div></p>
<p>Business Insider recently published its list of <a href="http://www.businessinsider.com/the-sexiest-ceos-alive-2014-9">The Sexiest CEOs Alive</a>. As it turns out, these executives don't just have pretty faces and hot companies; they're also full of inspirational insights and fascinating outlooks on business, success, and getting ahead. </p>
<p><strong>Here are 26 quotes from the world's hottest CEOs:</strong></p>
<p>1) "If something is important enough, even if the odds are against you, you should still do it." -Elon Musk</p>
<p>2) "The goal isn't how much money you make, but how much you help people." -Blake Mycoskie<span style="font-size: 15px; line-height: 1.5em;"> </span></p>
<p>3) "Even if you're not yet an entrepreneur, you can be entrepreneurial in everything you do. If you view each stop as an opportunity to learn something, there is always something you will take away from that experience." -Tory Burch</p>
<p>4) "Success is never accidental." -Jack Dorsey</p>
<p><div class="KonaFilter image-container click-to-enlarge"><div class="image on-image"><a title_source="Getty / Bill Pugliano " title_caption="Jack Dorsey." class="zoomin" href="https://static-ssl.businessinsider.com/image/54218952eab8ea8e4a471653-960/twitter-cofounder-jack-dorsey-12.jpg"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/54218952eab8ea8e4a471653-1200-924/twitter-cofounder-jack-dorsey-12.jpg" border="0" alt="Twitter cofounder Jack Dorsey " width="800" /></a><p class="source"><span><a href="http://www.gettyimages.com/detail/news-photo/jack-dorsey-chairman-of-twitter-and-ceo-of-square-speaks-at-news-photo/151882476#">Getty / Bill Pugliano </a></span></p><p class="caption">Jack Dorsey.</p></div><p></p></div>5) <span style="font-size: 15px; line-height: 1.5em;">"You don't learn to walk by following rules. You learn by doing, and by falling over." -Richard Branson</span></p>
<p><span style="font-size: 15px; line-height: 1.5em;">6) "What I've really learned over time is that optimism is a very, very important part of leadership." -Bob Iger</span></p>
<p>7) "You can't act like you've arrived when you're only just receiving the invitation." ?Sophia Amoruso </p>
<p>8) "<span style="font-size: 15px; line-height: 1.5em;">Starting a company, your success is going to be very dependent on how you adapt. You're going to make decisions, you're going to make bets; most of them are going to turn out to be wrong." -Jeremy Stoppelman</span></p>
<p>9) "What I always say is, 'Do every job you're in like you're going to do it for the rest of your life, and demonstrate that ownership of it."' -Mary Barra</p>
<p>10) "People don't do good work when they feel like losers and are second-class citizens within their own company." -Jonah Peretti<span style="font-size: 15px; line-height: 1.5em;"> </span></p>
<p>11) "When everyone zigs, zag. Life is all about trying to get somewhere first." -Alexa Von Tobel</p>
<p>12) "The first step is to establish that something is possible; then probability will occur." ?-Elon Musk</p>
<p><span>13) "If you can find something that you're really passionate about, whether you're a man or a woman comes a lot less into play. Passion is a gender-neutralizing force." -Marissa Mayer</span></p>
<p><span><div class="KonaFilter image-container click-to-enlarge"><div class="image on-image"><a title_source="AP Photo" title_caption="Marissa Mayer." class="zoomin" href="https://static-ssl.businessinsider.com/image/542188d46da811b852d19036-960/marissa-mayer-184.jpg"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/542188d46da811b852d19036-1200-924/marissa-mayer-184.jpg" border="0" alt="Marissa Mayer" width="800" /></a><p class="source"><span>AP Photo</span></p><p class="caption">Marissa Mayer.</p></div><p></p></div>14) </span><span style="font-size: 15px; line-height: 1.5em;">"Today there are millions of people making stuff and putting it into the world: that's become part of our identity and it shouldn't be limited to people who fancy themselves writers, or who are particularly witty or talented." -David Karp</span></p>
<p>15) "As an entrepreneur, I try to push the limits. Pedal to the metal." -Travis Kalanick<span style="font-size: 15px; line-height: 1.5em;"> </span></p>
<p>16) "I don't have a mentor in the strict definition. I take as much advice and inspiration as I can from the people I am close to." -Natalie Massenet</p>
<p>17) "Motivation, passion, and focus have to come from the top." -Kevin Plank</p>
<p>18) "If it doesn't scare you, you're probably not dreaming big enough." -Tory Burch</p>
<p>19) "In order to inspire people, that's going to have to come from somewhere deep inside of you." -Jeff Weiner<span style="font-size: 15px; line-height: 1.5em;"> </span></p>
<p>20) "There are secret opportunities hidden inside every failure." -Sophia Amoruso</p>
<p>21) "Failure is an option here. If things are not failing, you are not innovating enough."?-Elon Musk<span style="font-size: 15px; line-height: 1.5em;"> </span></p>
<p>22) "Do not be embarrassed by your failures, learn from them and start again." -Richard Branson</p>
<p><span style="font-size: 15px; line-height: 1.5em;">23) "Learn as many mistakes and what not to do while your business or product is small. Don't be in such a hurry to grow your brand. Make sure that you and the market can sustain any bumps that may occur down the road." -Daymond John</span></p>
<p><span style="font-size: 15px; line-height: 1.5em;"><div class="KonaFilter image-container click-to-enlarge"><div class="image on-image"><a title_source="Reuters/Gus Ruelas " title_caption="Daymond John." class="zoomin" href="https://static-ssl.businessinsider.com/image/5421886f6da8114e4fd1903b-960/robert-herjavec-lori-greiner-daymond-john-kevin-oleary-shark-tank-hosts-judges-1.jpg"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/5421886f6da8114e4fd1903b-1200-924/robert-herjavec-lori-greiner-daymond-john-kevin-oleary-shark-tank-hosts-judges-1.jpg" border="0" alt="Robert Herjavec Lori Greiner Daymond John Kevin O'Leary shark tank hosts judges" width="800" /></a><p class="source"><span>Reuters/Gus Ruelas </span></p><p class="caption">Daymond John.</p></div><p></p></div>24) <span style="font-size: 15px; line-height: 1.5em;">"Before you take the leap, before you jump, really make sure it's going to be something you want to get out of bed [to do] everyday, because it is so hard. So you want to make sure that you're really committed." -Alexa Von Tobel</span></span></p>
<p>25) "You don't have to start from scratch to do something interesting. You don't have to start from scratch to have a massive impact on the world. You have to have a good idea. You have to convince other people of those good ideas. And you have to push as quickly as possible." -Jack Dorsey</p>
<p>26) "Build something 100 people love, not something 1 million people kind of like." -Brian Chesky</p>

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