1. Strong founder imprinting, like that at Patagonia, can result in cohesive groups of employees holding similar beliefs. As a result, the corporate culture becomes more potent and unique. Yet, strong cultures can have a negative side effect: groupthink, the situation in which opinions coalesce around a leader and individuals do not critically evaluate and challenge that leader’s views and assumptions. Cohesive, non-diverse groups are highly susceptible to groupthink, which can lead to poor decision making with potentially harmful consequences. Is groupthink a risk to Patagonia? Why or why not?

2. Yvon Chouinard has had a tremendous influence on Patagonia over decades, initially by setting its strategy and culture. Chouinard was born in 1938. Many companies such as Walmart, Microsoft, Apple, and Dell experience great difficulty after their iconic founders departed. Do you think Patagonia may face a similar crisis when Chouinard is no longer involved with Patagonia? Why or why not? Explain.

3. Strategy is as much deciding what to do as it is about choosing what not to do. Chouinard decided to keep Patagonia private. Being a private company limits growth (as mentioned, Nike is some 50 times larger than Patagonia). Should Patagonia go public to maximize the impact of its mission “to save our planet”? In other words, could a larger Patagonia make a more significant difference in achieving its purpose-driven mission? Would a publicly traded Patagonia company allow more people to buy into and support the company’s vision by purchasing the company’s shares? What are the pros and cons of Patagonia going public? Which would you support—remaining private or going public? Explain.

4. On a more philosophical note, do you think businesses should pursue ESG goals such as combating climate change? Or should companies attempt to be as efficient as possible in providing products and services, focus on their core business, and return profits to owners who then can pursue ESG goals independently? One criticism levied against ESG activism is that many of the problems that companies attempt to solve should be left in the public domain and addressed through the political process because they concern social and environmental policy issues. Critics argue that companies do not have a legitimate democratic mandate and that capitalism may show up in areas of social and public life where it has not place. Other criticisms focus on the fact that businesses are not efficient in solving problems outside their expertise and that many companies pursue “greenwashing” as a public relations technique. What do you think? Explain