The Founder of Patagonia Gave Away His Company to Live His Values

Values. Schmalues…

I get it. Honing in on core values might sound like an exercise in futility. Does any company actually care about an individual’s personal values, and whether they match up with the organization’s vision?

Actually, the answer is: yes! But more importantly than that, understanding your core values and living and working by them is not for them — it’s for you. And understanding this facet of yourself can transform your experience at work, for the better.

Your Values Should Guide Your Decisions

Do you have a process for making important decisions? This is something I’m constantly working on with clients. Learning how to make sound, smart decisions in a timely manner is something that many people struggle to do, and believe it or not, when you understand your values, decision-making becomes much easier. 

In order to make important decisions, you first want to understand what you care about, what you believe in, and what’s most important to you. It’s great if your team and organization share a set of common values, as well. 

An excellent and timely example of this in action is Yvon Chouinard, founder of Patagonia. The outdoor sports gear company is currently valued at $3 billion with profits of approximately $100 million a year, and yet, Chouinard chose to give away his company in the name of climate action. 

You read that right: he gave it away. 

Chouinard, his wife and two children (who had no interest in inheriting the company) have transferred their ownership of the company to a specially designed trust and a nonprofit organization called the Holdfast Collective, dedicated to combating climate change. This was the only way, he said, to ensure that the company makes good on its promise to run a socially responsible business.

“Hopefully this will influence a new form of capitalism that doesn’t end up with a few rich people and a bunch of poor people,” Chouinard said in an interview with the New York Times. 

Talk about living your values. 

From the beginning, Chouinard held the values of environmental conservation and social equity. Patagonia was an early adopter of in-house childcare and organic cotton. The company embodied Chouinard’s values, and his actions in the last month are those of a reluctant businessman committed to his values. 

Chouinard isn’t the only example of a high-level executive living his values. In 2020, during COVID lockdowns, a host of CEOs took pay cuts so that their employees could continue to receive pay and benefits during the shutdown. One of my favorites is Tim Boyle, CEO of Columbia Sportswear, whose salary went from $950,532 in 2018 to $10,000 in 2020. The 3,500 retail employees continued to receive regular paychecks during the lockdown. 

Navigating Conflicting Values 

Sometimes, it’s obvious how to make professional decisions that are in alignment with your values. Other times, not so much; in fact, values can conflict — and that’s never a fun situation! 

Let’s look at a hypothetical scenario. Say you’re a senior VP at a company that holds the values of treating people fairly, and being the best in business. So what do you do when you need to make a decision about closing a division of the company because of a recession? 

If you lay people off… you’re violating the value of treating people fairly. 

If you don’t… you’re potentially violating the value of being the best in business. 

When you’re really connected to your values, and the values of the company, you might find a third option that wasn’t initially obvious. Holding the values of treating people fairly and being the best in business, you might decide to furlough your workers, or ask senior leadership to take a pay cut so employees can continue to receive their pay and benefits. 

There is always a solution when you’re in alignment with your values. 

Living Your Values, Day to Day

So what does it look like to live your values on a daily basis? 

One of my values is honoring human beings and giving back. Because it’s so important to me to live my values, I have created a partnership with B1G1.org, a nonprofit that offers micro loans to other nonprofits. When I get a new client, I give a percentage of the profit to a cause I’m excited about, like micro loans for female entrepreneurs in Asia, or health care for people in underserved communities.

If I’m not giving back, I feel as though I’m not truly living my authentic life.

Every time I give, I bring myself into alignment with my values, and inevitably I’ll find that I’ve attracted even more opportunities and connections. When I’m in integrity, my life works. My business works, and I make good decisions.

That’s how it works when you’re in alignment with your values. 

Ready to define your values and get into alignment? Send me a message and I’ll send you my Values Exercise for free.

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