404 of 481 + A' Read aloud Draw Highlight Erase should he and other Patagonia executives be doing today to make sure that his ideals remain a permanent part of the company's culture after he's no longer active at the company? 3. Problem Solving Picture yourself working for Patagonia. The CEO comes to you and asks for a proposal on a new-"forward- looking"-sustainability agenda for the firm. The goal is to drive Patagonia's future, not just celebrate its past. What would you include in this proposed agenda in order to really stretch the firm beyond what it is already doing, and why? Carsten Koall/Stringer/Getty Images 4. Further Research Evaluate the risk that ethics might someday lose out to greed even in a company with the idealism of Patagonia. Look carefully into Patagonia's products and practices and see if you Jeffrey Swartz is a straight-talking man. How did he feel about the can find any missteps where decisions put profits ahead of the com- sale of Timberland, the outdoor shoe and apparel company founded pany's publicly stated environmental goals. Can you find evidence for by his grandfather and formerly run by his father, to clothing giant VF strong governance and leadership that will protect Chouinard's values Corporation? When asked that, he replied: "It's a magnificent day and and legacy far into the future? How about the competition? Just how a bittersweet day, but the shareholders had to be our only concern." does Patagonia operate today to ensure that ethics and social respons sibility are not displaced as core company values? And finally, how Stakeholders Count about the competition? Is Patagonia still the best role model, or can During his 14-year stint running Timberland, Swartz made a suc- you identify other firms that deserve to be studied as well as role mod- cessful career of putting the interests of consumers, partners, and els in business and society relationships? virtually everyone on planet Earth ahead of his own, even in his last days at the family business. As business writer Marc Gunther notes, Sources: Patagonia website: "The Footprint Chronicles," www. "It's interesting-and very much in character-that as part of the patagonia.com/us/patagonia.go?assetid =23429, "Environmentalism: acquisition, Jeff didn't negotiate a contract for himself to stay on at Our Common Waters," www.patagonia.com/us/patagonia.go? Timberland, either as CEO or as an adviser. Executives of companies assetid=1865, "Environmental Internships," www.patagonia.com/ that are being sold often do that, but they are, in effect, using the environmental-internship-program.html, "Tools for Grassroots Activists leverage they have during a negotiation to take care of themselves, Conference," www.patagonia.com/us/patagonia.go?assetid=15372, potentially at the expense of other shareholders." "Our History," www.patagonia.com/us/patagonia.go?assetid=3351, And while Swartz can be confident that he left his family's "Introducing the Common Threads Initiative," www.patagonia.com/ 60-year-old company on high moral standing, he has to wonder about us/patagonia.go?assetid=1956; Monte Burke, "Wal-Mart, Patagonia Timberland's future. When VF Corporation acquired Timberland for Team to Green Business," Forbes (May 6, 2010); Kent Garber, "Yvon $2.3 billion, the brand became just another holding for one of the Chouinard: Patagonia Founder Fights for the Environment," U.S. world's largest clothing companies, whose stable of nearly two dozen News (October 22, 2009); Diana Random, "Finding Success by Putting brands includes The North Face, Nautica, and Vans. Company Culture First," Entrepreneur (April 19, 2011); Jennifer Wang, "Patagonia, from the Ground Up," Entrepreneur (May 11, Boot, Brand, Belief 2010); 1% For the Planet website, www.onepercentfortheplanet.org; Timberland describes its eras of evolution in terms of "Boot, Brand, Kristall Lutz, "What Makes Patagonia "The Coolest Company on the Belief." Boot depicts Timberland's roots as the Abington ShoeManagement Cases for Critical Thinking 389 Company, purchased by Jeffrey Swartz's grandfather, Nathan, partially footwear and bags. The bottles' journey supports individuals and in 1952 and then fully in 1955. For decades, the company specialized in communities along the way. "This partnership is truly special. We're tough-as-nails boots, only branching out to shoemaking in 1979. When proud to work with a brand with such a longstanding commitment to he took over in 1986, Sidney Swartz (Nathan's son and Jeffrey's father) the environment and social responsibility," said lan Rosenberger, CEO extended the Timberland Brand internationally and added clothing, of Thread. "Working together transparently, we're able to look beyond accessories, and women's and children's shoes to the product lineup. recycled materials toward the rich social impact consumers care about And when Jeffrey assumed the post of CEO in 1998, he stamped the and the stories that bring beautiful products to life." family business with his Belief in social justice, environmental sustain- ability, and corporate social responsibility. Case Analysis Questions While Nathan's "do one thing and do it right" focus and Sidney's 1. Discussion When Jeffrey Swartz was CEO, who did Timberland years of continuous corporate growth built a robust company to inherit, identify as its stakeholders? Does this stakeholder map contain stake- Jeffrey's deep moral convictions defined Timberland among its com- holders that aren't on the maps of other apparel companies? How can petitors perhaps more than any of its products ever did. "If I think branding and sustainability complement one another to enhance com- there's a big gap between belief and execution in corporate govern- petitiveness? ance," Jeffrey once said, "I also think there's a big gap in what I espouse and how I live. And I investigate both gaps daily." That means asking 2. Discussion In what ways did Timberland's strong commitment to the right questions. "As always, the decisions aren't hard-the ques- sustainability create value for society and also help the firm gain com- tions are hard. If you have the right questions, and you have the right petitive advantage as a major footwear brand? people that care-and we do have bright, caring people-you will 3. Problem Solving Timberland and its new parent VF Corporation almost always get a right answer." are heavily reliant on offshore production facilities. Be a global supply Timberland's emphasis on social responsibility began as early chain consultant. How would you describe the environmental uncer- as 1989, when it partnered with Boston's City Year, an "urban Peace tainty faced by firms sending work overseas? How can firms like this Corps," to promote community service. But it took declining profits manage supply chains so that they maintain their environmental and and a stagnant economy to inspire Timberland to forge its current sustainability principles? identity as a protector of the earth. Says Mike Harrison, Timber- 4. Further Research Research other apparel companies held by land's chief brand officer: "We really had to dig deep and figure out IF as well as the corporation itself. Describe how they have fared as how to create demand. In doing that, we reached back to what the part of the VF corporate umbrella. How is Timberland doing with a brand had always stood for. We went back to what we're known for, new parent company in charge? In what ways are Timberland's sus- which was an authentic outdoor brand with a very strong heritage tainability goals and practices rubbing off on VF? Has Timberland's of social responsibility and environmental sustainability. So, out of emphasis on Earthkeeping helped or hindered its integration into the necessity, we made a decision to refocus on our strengths." VF family of brands? That refocusing ultimately spawned Timberland's Earthkeep- ing campaign. Defined as "taking actions that enable us to be good Sources: Bob Sanders, "Swartz: Timberland Deal "Magnificent and stewards of the earth," Earthkeeping encapsulates the environmental Bittersweet," New Hampshire Business Review (June 14, 2011); Marc virtues that Timberland has both espoused and lived in recent years. Gunther, "Timberland's Jeff Swartz: 'This Is Hard," MarcGunther. While it may be hip for companies to adopt a green posture, Timber- com (June 14, 2011); "V.F. Corp. Completes Acquisition of Timberland land deeply committed itself to sustainable and environmentally and Company," RITNews, rttnews.com(September 13,2011); "Responsibility," Timberland https://www.timberland.com/responsibility.html (accessed405 of 481 | A) Read aloud | Draw V Highlight Erase identity as a protector of the earth. Says Mike Harrison, Timber- 4. Further Research Research other apparel companies held by land's chief brand officer: "We really had to dig deep and figure out VF as well as the corporation itself. Describe how they have fared as how to create demand. In doing that, we reached back to what the part of the VF corporate umbrella. How is Timberland doing with a brand had always stood for. We went back to what we're known for, new parent company in charge? In what ways are Timberland's sus- which was an authentic outdoor brand with a very strong heritage tainability goals and practices rubbing off on VF? Has Timberland's of social responsibility and environmental sustainability. So, out of emphasis on Earthkeeping helped or hindered its integration into the necessity, we made a decision to refocus on our strengths." VF family of brands? That refocusing ultimately spawned Timberland's Earthkeep- ing campaign. Defined as "taking actions that enable us to be good Sources: Bob Sanders, "Swartz: Timberland Deal "Magnificent and stewards of the earth," Earthkeeping encapsulates the environmental Bittersweet," New Hampshire Business Review (June 14, 2011); Marc virtues that Timberland has both espoused and lived in recent years. Gunther, "Timberland's Jeff Swartz: 'This Is Hard," MarcGunther. While it may be hip for companies to adopt a green posture, Timber- com (June 14, 2011); "V.F. Corp. Completes Acquisition of Timberland land deeply committed itself to sustainable and environmentally and Company," RITNews, rttnews.com(September 13,2011); "Responsibility," socially conscious business practices. Earthkeeping initiatives include Timberland, https://www.timberland.com/responsibility.html (accessed using partially or wholly recycled materials in manufacturing, using September 7, 2017); Jonathan Birchall, "Outdoor Boss Who Treads an reclaimed materials in retail stores, and giving employees 40 paid Ethical Path," Financial Times (October 3, 2010); Craig Hayman, "Argyle hours each year to volunteer in their community. Conversation: Mike Harrison, Chief Brand Officer, Timberland," Argyle Profits and Values Journal (May 7, 2011); "What Makes It Sustainable?" Timberland, community.timberland.com; and "Climate," Timberland, responsibility. The question now is how things may change in the future now that timberland.com (accessed February 15, 2012); Gunther, op. cit.; Michael Timberland is part of VF. As Swartz said in the days preceding his de- Mccord, "Timberland Achieves Profits While Helping the Environment," parture, "When you change the signature in the bottom-right corner Seacoast Online (May 4, 2010); Dan Primack, "Q&A with Timberland CEO of the paycheck, that means they will get to make decisions that I now Jeff Swartz," Fortune (June 13, 2011); "Timberland Partners with Thread get to make." Betsy Blaisdell, Timberland's senior manager of environ- to Look Beyond Sustainability and Toward Responsibility," Timberland mental stewardship, said: "Bottom-line results are obviously critical- corporate news release (June 2, 2016). if we cease to be profitable, we cease to exist-but if we earn them at the expense of our values and commitment to be a responsible corpo- rate citizen, we've failed." For his part, former CEO Swartz said shortly before his departure. "You can run a for-profit business and be mindful Case 5 Royalton Hicacos Varadero Cuba | One Foot in of basic human rights and your environmental impact. You can run a Capitalism; One in Communism for-profit business in a way you'd be proud to tell your children about You can't get much more workplace diversity than and face your God about." to have a capitalist company from Canada operate After the sale, Timberland continues to find environmental part- a property in communist Cuba. But thanks to open- ners. It is now moving beyond sustainability to include responsibility. minded management, the Royalton Hicacos resort in Working with fabric manufacturer Thread, Timberland now supports Varadero succeeds in pleasing its Canadian owners, its an initiative that takes plastic bottles collected in Haiti and Honduras Cuban government-oriented hosts, and its guests from and transforms them into fabric to make a collection of Timberland around the world.Figure 1.2 helps to determine a company's productivity using the critelia of effectiveness and efciency. Describe Vancity's productivity using this model. Discuss the management roles at Vancity by applying Figure 1.1 Give two examples oi each role from the case Chapter 4 Case: Timberland From Bootmaker to Earthkeeper 1. 2. Perform an external environment (CREST) analysis of Timberland. Which environment provides the most immediate challenge for Timberland? Stakeholder needs define what the organization must do to meet these needs. Apply Figure 4.2 to illustrate the stakeholder's needs of Timberland. Must stakeholders needs be satisfied at any cost? Come up with an innovation Timberland could create that would give it a competitive advantage. Take that innovation through all the steps of the innovation process. In what ways did Timberland's strong commitment to sustainability create value for society? Give lulmples from the case. 404 of 481 + A" Read aloud Draw V Highlight V Erase goal is to then be able to "take a jacket and melt the whole thing down back to its original polymer to make more jackets." Despite his boundless enthusiasm for all things green, Chouinard, Case 4 Timberland-From Bootmaker to whose father was French Canadian, admits that no process is truly sus- Earthkeeper | Walking a Green Path tainable. "I avoid using that word as much as I can," he says. He pauses Timberland has built a reputation for creating simple, for a moment and adds: "I keep at it, because it's the right thing to do." durable footwear and outdoor accessories. The company Case Analysis Questions has developed a reputation as a leader in environmental 1. Discussion How do you think Patagonia executives decide on stewardship. But will Timberland's recent sale to a cloth- what products to offer so that the outcomes will be both business ing conglomerate change that? practical (think profits) and environmentally friendly (think sustain- ability)? Take the case of a proposed new hiking boot. What criteria would you use to evaluate it as a new Patagonia product? 2. Discussion Even though he is no longer the CEO, Yon Chouinard still exerts major influence over Patagonia's business approach. What Timberland should he and other Patagonia executives be doing today to make sure BEST THEN BETT Now that his ideals remain a permanent part of the company's culture after he's no longer active at the company? 3. Problem Solving Picture yourself working for Patagonia. The CEO comes to you and asks for a proposal on a new-"forward- looking"-sustainability agenda for the firm. The goal is to drive Patagonia's future, not just celebrate its past. What would you include in this proposed agenda in order to really stretch the firm beyond what it is already doing, and why? Carsten Koall/Stringer/Getty Images 4. Further Research Evaluate the risk that ethics might someday lose out to greed even in a company with the idealism of Patagonia. Look carefully into Patagonia's products and practices and see if you Jeffrey Swartz is a straight-talking man. How did he feel about the can find any missteps where decisions put profits ahead of the com- sale of Timberland, the outdoor shoe and apparel company founded pany's publicly stated environmental goals. Can you find evidence for by his grandfather and formerly run by his father, to clothing giant VF strong governance and leadership that will protect Chouinard's values Corporation? When asked that, he replied: "It's a magnificent day and and legacy far into the future? How about the competition? Just how a bittersweet day, but the shareholders had to be our only concern." does Patagonia operate today to ensure that ethics and social respon sibility are not displaced as core company values? And finally, how Stakeholders Count about the competition? Is Patagonia still the best role model, or can During his 14-year stint running Timberland, Swartz made a suc- you identify other firms that deserve to be studied as well as role mod- cessful career of putting the interests of consumers, partners, and els in business and society relationships? virtually everyone on planet Earth ahead of his own, even in his last days at the family business. As business writer Marc Gunther notes, Sources: Patagonia website: "The Footprint Chronicles," www. "It's interesting-and very much in character-that as part of the patagonia.com/us/patagonia.go?assetid =23429, "Environmentalism: acquisition, Jeff didn't negotiate a contract for himself to stay on at