CSR Investigation Of Cotton On And Toms - Assignment Solution

• Introduction 

The core purpose of the report is to compare Corporate Social Responsibility (CSR) approaches of two companies with an aim of analyzing the effectiveness of stakeholders’ engagement strategy of two companies. The two chosen companies are Cotton On and Toms, which operate in fashion retail sector with global reach. The scope of report is inclusive of investigation of CSR strategy, forms of CSR approach taken by two companies and then effectiveness of stakeholder’s engagement and communication approaches of these two companies. The analysis has aided in carrying out critical investigation of CSR approaches of two organizations, such that informed conclusions can be drawn about effectiveness of stakeholders’ engagement.  

• Background 

Cotton on Group is considered as one of the largest global retailer of fashion clothing which is based in Australia and operates in around 81 countries across the world. Company was founded in 1991, privately owned and have eight divisions which operate in multiple countries (Cotton On, 2019a). The main purpose of Cotton On is to make difference in lives of everyone by making reliance on big ideas of creating change in lives of people (Cotton On, 2019b). On the other hand, another organization chosen is Toms, which has been developed in 2006 by Blake who has realized that growing up without shoes is really hard for children of vulnerable regions (Toms, 2019a). Both Toms and Cotton On operate in fashion retail industry. Toms is based in California and it operates worldwide. The company mainly deal with eyes wears, apparels, shoes, clothing and handbags. The company has only one mission, to offer shoes to everyone in need, which has been accomplished through ‘one on one’ business model of company through which each shoe pair sold is matched with shoe pair needed by someone (Toms, 2019a, Toms, 2019c). 

• Analysis of Communication 

• Focus of CSR strategy 

Investigation of CSR approach of Cotton on Group has highlighted that company is engaged in substantial sustainability efforts, of which Good is the most significant sustainability program of company (Cotton On, 2019a). The sustainability program of company mainly focuses on four key areas. Firstly, the made with good initiative of company focuses on collaborating with sustainable partners for fostering responsible production. Secondly, the focus is maintained on doing good for people, whereby suppliers, farmers and workers are empowered through education and responsible policies of Cotton on (Cotton On, 2019b). Thirdly, good steps are taken towards green, through which company makes an effort to lower the adverse impact of activities from environment. Finally, good is done by ensuring transparency of supply chain (Cotton On, 2019b). These aspects highlight that Cotton On makes reliance on CSR strategy for empowering people, for making community contributions and for lowering its environmental impact. 

The sustainability of Toms can be witnessed from its business model which is developed for purpose maximization and is also termed as caring capitalism by the company (Toms, 2019c). The giving is considered as core aspect of Toms’ business model, and it has been mentioned in the study of Sierra‐García, Zorio‐Grima and García‐Benau (2015) that Toms considers community needs of finances, health and education as its core priority, which makes it highly responsible company among its stakeholders. Additionally, the investigation of company’s CSR has identified that Toms has mainly distributed shoes in the areas which can be benefited in terms of health as well as social aspects (Toms, 2019b). For instance, the company has approached people of Ethiopia for distribution of shoes with an aim of assuring that soil borne disease can be controlled. Additionally, company has make expansion into eyewear segment only to help people with eyes impairments (Toms, 2019b). This segment of company follows one for one model of profit, whereby money is being used for supporting treatments and surgeries of people with eye related issues (Toms, 2019a). All of these aspects of Toms’ CSR strategy clearly indicate that company is more inclined towards development of community relations by offering helping hands to wellbeing of community.