I don't know where to start with my reverence for Chouinard. He's my anti-business business hero, a reluctant radical in corporate America. The book opens:
"I've been a businessman for almost fifty years. It's as difficult for me to say those words as it is for someone to admit being an alcoholic or a lawyer. I've never respected the profession. It's business that has to take the majority of the blame for being the enemy of nature, for destroying native cultures, for taking from the poor and giving to the rich, and for poisoning the earth with the effluent from its factories. Yet business can produce food, cure disease, control population, employ people, and generally enrich our lives. And it can do these good things and make a profit without losing its soul. That's what this book is about. "
When I think about Patagonia, I think about a company that prioritizes its values over profits. The brand image of the company is not simply a product of skilled marketing, but an extension of the authenticity of its founder, and the culture he established. Chouinard never wanted to be a businessman, he didn't really care that much about making money; he simply needed to make a little cash so he could go climbing...and well, why not make climbing gear to do it?
As the company slowly took off, Chouinard grappled with that success. In a pivotal moment for the company, a management guru asked Yvon "If the main goal of the company is to fund environmental causes, why not sell the company today for $100M, and give it all rather than a steady drip of 10% of your profits?". Chouinard struggled with that question until he figured out his answer years later:
"I knew, after thirty-five years, why I was in business. True, I wanted to give money to environmental causes. But even more, I wanted to create in Patagonia a model other businesses could look to in their own searches for environmental stewardship and sustainability. "
Today, Patagonia's mission statement is "Make the best product, cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis." This philosophy took decades to catch on, but today it is common knowledge that mission-driven businesses develop strong brands and loyal customers, attract the best employees, and often deliver above-average returns to investors with lower risk.
When we think of contemporary innovative business leaders, we often think of people who developed products that made the future come to life. Yvon Chouinard did create a few new products, but that is far from being the most significant part of his contribution to the advancement of management. I would argue that the paradigm shift that is still under way, that you can "do well by doing good", which owes so much to Patagonia's example and success, will prove to be one of the most important business innovations of our age, and a key component of what (hopefully) tips us into a cleaner economy.