ETHICAL BEHAVIOUR AND SOCIAL RESPONSIBILITY
lululemon athletica There are many ways to measure the success of a business. A financial analysis of lululemon athletica, a Vancouver-based company, would show that it is valued at more than $220 million. Would looking at an improved level of health in its community be another way to measure the success of this company? lululemon athletica founder Chip Wilson would welcome your investigation of the improved health and well-being of people in the communities of the more than 40 locations around the world where the company conducts business.1 History of the Company
Founded in 1998, lululemon athletica recognized an increase in the number of women participating participating in both both yoga and and athletics, athletics, and it it responded responded by designing designing athletic athletic wear wear that was both better quality and a better fit. To date, ”lulu” has succeeded in developing both a brand and a culture of customers customers who who believe believe that wearing wearing the product helps them them to achieve their athletic goals, lead more balanced and positive lives, and generally feel more amazing.2 lululemon athletica continually develops new and innovative clothing lines, all made with technologically advanced fabrics that wear better, fit better, and feel more comfortable. Both men and women who participate in a variety of sports such as yoga, running, mountain climbing, and cycling wear the products. Costly by comparison with other brands of athletic clothing, lulu has recently introduced a lower-priced line of organic-fibre clothing called OQOQO (pronounced oh-coco). Company Passion
The mission of lululemon athletica is to provide the components that will help people live longer, healthier, and more fun lives. The mission is driven by a set of core values that address the design and quality of the product, the integrity of the company, and the belief that there is no separation between health, family, and work.3 The core values were inspired by the company’s company’s commitm commitment ent to a yogi yogi lifestyle lifestyle,, which is based on the the belief belief in the 4 interconnectedness and codependence of all beings on our planet. lululemon athletica strives to increase awareness of the benefits of practicing yoga and the understanding that, if incorporated into our daily lives, it will energize our bodies and calm our minds.5 The millions of people, worldwide, who practice yoga each week share this commitment. Yoga is not just a fitness fad, but has become a lifestyle trend. Along with the physical benefits, yoga can improve sleep, increase energy levels, and decrease blood pressure. Some possible possible psychological psychological benefits benefits include include improved improved levels levels of concentration concentration and attention attention and decreased anxiety. Store, Product, Community Awareness
Traditional marketing and advertising campaigns are not what brought lululemon athletica their growth and financial success. Instead, the company inspires and builds trust and
loyalty by focusing on selling quality products, providing a positive store experience and empowering its educators(staff), guests (consumers), and ambassadors (local fitness instructors) in a number of creative ways that help increase awareness of the company. The company spends money on training educators and providing the guests with the best possible possible store and and product product experience. experience.6 Both educators and guests have the opportunity to be a part of in-store in-store yoga yoga classes, classes, and to peruse peruse the the educational educational corner corner of the store store to learn learn more about yoga and the off-site yoga studios that are available. Although identical lines of clothing are sold in each store and the store experiences should be similar, the educators are urged to put their individual stamp on the store. For example, a Toronto store might provide a clinic clinic on long-distance long-distance running running to prepare prepare guests guests for the yearly yearly Toronto Toronto Marathon while a store in North Vancouver might put on a snowshoe running clinic for those travelling into the Rockies.7 lululemon athletica has a manifesto that it lives by. This public declaration of intent is displayed in a prominent location in each store. The manifesto consists of a number of statements that serve to empower educators and guests. Some examples include, “friends are more important than money,” “SWEAT once a day to regenerate your skin,” and “jealousy works the opposite way you want it to”. The Charitable Giving program at lululemon athletica is committed to raising awareness of charities in the communities in which it does business. Guests decide which local charities they would like to support and the store then selects up to eight of these to be part of the program. program. lululemon lululemon athletica athletica is also also committed committed to to the Centre Centre for Integrate Integrated d Healing, an an organization dedicated to holistic treatment and prevention of cancer, and Silken Laumann’s community-oriented Active Kids Movement.8 Growth and Community Commitment
The company has plans to open nearly 200 new stores worldwide. In preparation, lululemon athletica has hired an experienced CEO, Robert Meers, who was at the helm of Reebok for 15 years. In 2005, the company implemented a five-year vision called the Community Legacies program which is based on the belief that “every person we hire, garment we create, store we open, customer we educate, and yoga class we attend contributes to building a legacy in our communities.” 9 This goal and action plan, along with the deep-rooted commitment to ethical business practices and maintaining a health and fun-filled environment in communities it operates in, will guide lululemon athletica towards success as a global retailer.
_______________ ______________________ _______________ ________________ _______________ ______________ ______________ ______________ _______________ __________ __ Endnotes 1
Eve Lazarus, “Familiar Logo Transcends Generations Stretching Its Influence,” Marketing Marketing (November 20, 2006), p. 25. 2 Information on the corporate website, . 3 Ibid, . 4 Ibid, .
5
Ibid, . Ibid, . 7 Renee Alexander, “Connecting Mind, Body, and Brand,” Business Business Week (February 22, 2006), p. 1. 8 Information on the corporate website,. 9 Ibid, . 6
Questions
1. Discuss leadership beliefs that guide guide the socially responsible practices at lululemon athletica. 2. Evaluate lululemon athletica’s social performance with respect to its economic, legal, ethical, and discretionary responsibilities. 3. What social responsibility strategy is lululemon athletica pursuing?
You Do Do the the Researc Research h
1. Research lululemon’s manifesto. Share, with a fellow classmate, the three statements that empower you the most. Add a personal statement to the manifesto. 2. Research the five-year vision and Building Community Legacies program and discuss how the company plans to meet the goals in each of the areas addressed.
