Reference no: EM131051870

WARBY PARKER/VISIONSPRING

Warby Parker is a relatively new player in the eyewear industry, but it's managed to make a big impact in a short amount of time. Neil Blumenthal and his three partners founded the company in 2010 in order to sell sophisticated and affordable glasses frames. But the team also wants the brand to stand for more than just profits, as evidenced by its commitment to keeping prices low and its relationship with its charitable partner, VisionSpring. Unlike other start-ups that face competition from many established companies, Warby Parker only has one major competitor. However, it just so happens that this rival owns almost all of the bestselling eyewear and eyecare brands in the world. Since this large conglomerate doesn't create any barriers to upstarts like Warby Parker from entering the market, it is technically not a monopoly and can operate legally.

Still, Warby's founders see this business model as unethical since it allows one huge company to set prices over an entire industry for maximum profit. Blumenthal and his partners didn't want to contribute to the imbalance of power between consumers and manufacturers, so they set out to form a different kind of company. From the outset, Warby Parker developed an ethical standard that focused on its most important stakeholder- its customers. Since the company saves money by selling exclusively online and designing and manufacturing its own frames, it is able to fix the price of every pair at a modest $95.

Considering that its competitor's frames can be as costly as a new iPhone, Warby immediately caught the interest of many stylish but budget-minded consumers. An organization operates in a larger world, and there are more stakeholders than just customers. Warby Parker felt it had a mission to bring affordable eyewear to the masses, and nobody needed that tool more than impoverished people in developing nations. It was a natural thing, then, for the company to join forces with VisionSpring, a charity that gives quality eyeglasses to people struggling with vision problems in some of the poorest countries in the world. Warby donates a pair of glasses to the nonprofit for every pair that its customers buy.

Together, they have put over a half-million pairs of glasses into the hands of people whose livelihoods depend on them. VisionSpring hopes this model will inspire other American companies to get more involved in impacting global markets at the local level. For all its efforts, VisionSpring estimates that there are still over 700 million people worldwide who struggle to earn a living on account of lacking quality glasses. The folks at Warby Parker and VisionSpring believe that once you see that figure clearly, it's hard to look the other way.

1. Is Warby Parker is a good example of corporate social responsibility. What dimensions stand out in measuring the company's social performance?

2. What is a social audit and why do companies perform them? What factors would you consider in your social audit of Warby Parker?

3. Do you believe most businesses in the United States follow strict ethical standards? Make sure to offer some defense in support of your answer.