Why the One-for-One Business Model is Great for Businesses and Social Impact

Every man must put back into the world at least the equivalent of what he takes out of it.

These are the words of Albert Einstein, one of the greatest scientists of the 20^th century. Not many people know that apart from being an outstanding scientist, Einstein was also a passionate philanthropist. Just as not many people know that in fact, Einstein was a slow learner as a child. Or that the money he received from his Nobel Prize went to his ex-wife as a divorce settlement. Or that he was offered the presidency of Israel when the country was founded in 1947, which he declined.

Like many great individuals, the father of relativity had a strong desire to give back. He wanted to contribute to the greater good. Urge that I genuinely believe all of us have. The Internet and social media connect us, offering platforms like Indiegogo and Kickstarter. These platforms give individuals the chance to pursue their passions and make a difference.

Indeed, charity and non-profit organizations no longer reserve philanthropy and good deeds exclusively. In the last decade, people have redefined philanthropy. More people have found new outlets for giving back. They are discovering ways to leave their mark.

Still many, however, struggle being torn between their jobs, what they do for a living, and their craving for meaning and life purpose. It’s the perpetual dilemma of I want to give back but I don’t have the time. People struggle to find time for meaningful social work due to busy schedules. Work, family, and other obligations often take priority. It can be hard to fit into social activities that provide fulfillment.

It’s a frenzy for most of us, our daily routines often don’t even leave us time for ourselves, let alone for luxuries such as say volunteering. As a business mentor, I often meet business owners who have this problem, indeed they are torn by their daily obligations and the desire to make a difference.

What if I told you that there is a way to work meaning into your business and leave a legacy doing what you do for a living? Not only you but your employees too, who most likely feel that craving for a bigger purpose just as much as you do.

One way to incorporate meaning into your life is through strategic philanthropy and in particular through the so-called one-for-one model. Essentially it means that for every sale made, whether of a product or a service you provide, somebody in need gets the equivalent free of charge. As many of you probably know, the model is attributed to TOMS shoes, an American company that started donating a pair of shoes to a child in need for every pair of shoes bought by someone else. Many companies have followed suit doing the same in their industries.

If you too crave meaning but don’t have time to dedicate to philanthropy, the one-for-one model could be a solution for you too.  Here’s why I think it is great:

It ties in business results with social support

Creating a connection between business growth and impact is great. Think about it for a second. Knowing that each sale helps someone in need doubles your motivation. It drives you to keep pushing and grow your business. And you will be growing it not only for the sake of growing it but to expand your social impact too.

One of my favorite companies doing that (although there are many more out there who do great work) is a bottled water company called Faucet Face. Not only do they donate money for each bottle sold but also a water filter to a charity called Third Millennium Awakening.

Gets employees engaged at all levels

As I mentioned earlier, the craving for life meaning is probably as large in you as it is for your employees. The one-for-one model gives your employees at all levels pride in doing what they do. From Accounting to Marketing and every department in between, people will feel that their daily work adds to a greater cause.  In other words, the sense of fulfillment and purpose is not reserved for a Social Committee team dedicated to organising charity events. Everyone benefits from knowing their efforts contribute to the bigger corporate picture. This impacts both the bottom line and overall success.

Another company that I admire for the way they’ve implemented the one-for-one model is Hand in Hand. A soap company that donates a bar of soap and a month of clean water to a child in need. In first-world countries, a bar of soap may seem trivial. However, in poorer countries, it’s a luxury and a powerful tool against disease and infection.

Your social impact is consistent

One of the biggest downsides to non-strategic corporate social efforts (such as chequewriting) is that they are never regular. If a company only donates money when times are good or when they have extra cash, the money doesn’t go a long way in actually helping anyone. For your philanthropic efforts to give long-term results, you need regular contributions, whether of time, money, or other resources.

For example, if TOMS were a regular company doing charity, they might be donating shoes to an orphanage once a year, say around Christmas. By operating a one-for-one model, they ensure a child receives shoes for school this year. Next year, the child gets another pair, helping them stay in school.

Works for all types of businesses

Many people wrongfully believe that the one-for-one model applies only to retailers and/or manufacturers. Although TOMS, a retailer, started this model, people often associate it with such companies. However, it doesn’t have to apply only to them. You could be a dentist or a legal service provider. The one-for-one model can apply equally well in both cases. How? By providing your services to somebody from a poor community, who wouldn’t be able to afford your services otherwise, for every client you get.

The benefits of the one-for-one business model are many. Make your workplace more attractive to employees and improve retention. Give clients another reason to buy and enhance your company image. Its greatest advantage is that it makes your work as a business owner meaningful. It also helps you leave a legacy through your profession.

If you want to make a difference and need strategic guidance, feel free to reach out. We’re here to help. As a corporate philanthropy consultant with years of business coaching experience, I help integrate meaning and purpose into your business. I focus on creating sustainable solutions.