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More Start-Up Companies Seek Consumer Loyalty by Aiding Charities

September 30, 2010, 12:41 pm

Following the example of for-profit social ventures like Toms Shoes, which gives a pair of shoes to the needy for each one sold, more start-ups are incorporating charity into their business model, The Wall Street Journal says.

Businesses following the “one-for-one” strategy pioneered by Toms, a Santa Monica company, are pinning their hopes for profitability on consumers’ willingness to pay more for products associated with a cause in which they believe, the newspaper says.

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