Innovation

Oliberté is the first Fair Trade Certified shoe manufacturer, and its CEO and founder Tal Dehtiar was named one of FAST Company’s 100 Most Creative People in Business in 2012. This speaks volumes about the company’s innovative nature. Indeed, it is now one of the most unique and promising companies in the footwear sector.

It obviously has competitors, as there are other ethically manufactured shoe companies, mainly TOMS, that share a market segment with Oliberté. However, TOMS has a “buy-one-give-one” model of charity, where each pair of shoes sold provides a free pair of shoes to someone in need. While it is a noble idea, Dehtiar’s experiences in Africa showed that this particular practice put many local shoe craftsmen out of work because their product was now being provided for free, and it was more of a marketing strategy than actual good aid. This is why Oliberté's management feels like by creating job opportunities and giving locals an industry in which they could become skilled and knowledge to pass on to their children for their futures, they are contributing more to the long-term improvement and growth of the country.

The main reason why Oliberté is so different from other ethical manufacturers is that instead of portraying a very stereotypical image of Africa (starving children that need aid), they present a new side of the continent (as a land of opportunities and resources). This shows in their ads and the videos on their website. It is true that the company's first ad was very stereotypical: it was a picture of a Maasi warrior, and it invoked pity and compassion for Africa. But Tal Dehtiar was really dissatisfied with it and felt like it went against his vision for the company. So they changed it, and now the video that is up on the company's website shows motivated and hardworking Ethiopian workers and craftsmen, and it showcases the country's untapped potential and resources (low labor costs, high potential for green energies, rapidly growing GDP). They also focus a lot on the quality of their products. Oliberté sells pride instead of pity, and they want customers to buy their shoes not because they feel sorry for the African children but because they admire the products' high quality and unique design.

His vision obviously was not shared by everyone. Many people (including potential funders and other manufacturers) thought that starting a business in a third-world African country was not the smartest idea. There are a number of reasons most manufacturers do not make their products in Africa: poor infrastructure, unqualified labor, corruption, lack of political stability, outdated equipment, etc. But he was fiercely determined to build a successful business in Africa. He wanted to prove that it was possible to both build a fair trade company and make it work. And he did make it work.

Inspiration

Tal Dehtiar originally started the social enterprise MBA's Without Borders (MWB), which paired MBA holders with promising entrepreneurs from developing and third-world countries to help them develop and expand their businesses. During his work in MWB and his many travels, he noticed that much of the aid provided by charities in third-world countries (mainly Africa) often undermined these countries' progress and made them dependent on outside help. This motivated him to stop his business and start working on something new, Oliberté. Oliberté, unlike many other ethical companies, focuses more on empowering Ethiopian craftsmen and workers rather than just providing them with financial aid. Dehtiar aims to help stop the dependency of third-world African countries on charity and international aid, and instead try to improve their skills and aim to create their own enterprises and businesses.

Our interviewee, Will Jackson, the Marketing and Public Relations Manager at Oliberté, also started working there for very similar reasons. He studied International Development in school and focused largely on the history of foreign aid to the African continent. What he found in his studies were constant examples of how aid could be ineffectively distributed or even harmful to local economies. Oliberte’s mantra of “Trade not Aid” means they support strengthening local economies, which builds self-sufficiency, as opposed to aid, which often builds long-term reliance. So, when he left school to start work, Oliberte was his ideal company to work with.

Overall impact

Oliberté’s for-profit model allows them to make profits and revenues (as opposed to a charity), which allows the company to expand. This is how they went from a small company that only did partnerships with African suppliers and manufacturers to having their own factory and moved from having only a few employees to over 120 workers within just 5 years. The expansion created many new job positions and contributed to the economic growth and long-term improvement of Ethiopia.

As the company expanded and became more and more committed to getting Fair Trade certification, they became more interested in protecting the environment, so they joined the 1% for the Planet movement, which is a global movement of more than 1,200 companies in 48 countries that give 1% of their sales to more than 3,300 non-profit organizations that work for the environment.

Business benefit

In order to get the Fair Trade certification, Oliberté made many efforts. Indeed, the Ethiopian team, working in the factory, had to meet more than 255 requirements. Some of the conditions include paying over double the minimum wage in Ethiopia to the local workers and creating a Community Premium fund. The fund comes from a percentage of total sales. The concept behind it is that employees collectively choose a need to which they will allocate this fund. Then, the organization directly uses the allocation to create social and economic well-being for its workers.

Moreover, the company tries to boost the local economy by buying natural resources and machines from Africa as much as possible. This may seem charitable. However, Oliberté does not consider itself as a charity. It is a social enterprise with a precise mindset, "Trade not Aid," which makes benefits and reinvests them in order to create more job opportunities in Ethiopia and Africa more generally. The company argues that every developing country is capable of growing and expanding with the right efforts and investments. This is the vision of Oliberté, which offers opportunities in African countries by providing more than 70 jobs to local workers and suppliers.

Another point worth mentioning is that the organization tries to create a sustainable economic plan by engaging in a limited, but profitable, number of projects and programs. The company’s plan emerges from the belief that a “fast fashion” model puts too much pressure on workers and that fewer long-term projects may be more successful. In addition, the company encourages local suppliers and allocates 1% of its production to workers in order to motivate them.

All these factors, according to the company, create happy workers who bring in happy customers.

Social and environmental benefit

One of Oliberté’s main concerns has always been the social well-being of its workers and employees. Indeed, the organization has focused on empowering workers in Africa and establishing gender equality in its factory. For example, Oliberté offers a 90-day maternity leave and presents the same opportunities to women when it comes to employment. In addition, the company has worked over recent years to ensure its workers' safety in the factory by preparing emergency exits and fire extinguishers. It has also provided safe equipment and paid for a weekly health check for its employees.

Environmentally speaking, the organization tries to use eco-friendly products and recycle its materials as much as possible. It also encourages eco-friendly suppliers in the region by purchasing natural rubber and using hormone-free leather only. The commitment of the company toward the environment is even more obvious in its cooperation with the environmental movement 1% for the Planet.

Interview

Will Jackson, Marketing and Public Relations Manager at Oliberté