Yves Chouinard: Values In Practice

Photo by Christian Schrader on Unsplash

Like most folks, I was floored this week when I heard the news that Yvon Chouinard, the 83 year old founder of the outdoor apparel maker, Patagonia, was going to give away his company, instead of selling it or taking it public.

Specifically, ownership of the $3 Billion company (that generates $1 billion in revenues and $100 million in profits every year) would be transferred to a specially designed trust and nonprofit organization, and all future proceeds will go towards combating climate change and protecting undeveloped land around the globe.

My first reaction, after I picked my jaw up off the floor, was that he must have received some material tax benefit as a result (sure, call me a cynic). Turns out that it was actually the reverse: Chouinard paid $17.5 million for the stock transferred to the Trust and received no tax benefit (including no charitable deductions) for the stock put into the nonprofit organization. 

In addition, he relinquished control over the company and put it in the hands of this Trust, which has the goal of running a socially responsible business and giving away its profits for its designated objectives. 

I realized then that this was an act of largesse unlike any other, certainly none that I could name (including the Giving Pledge that so many billionaires have committed to, on Warren Buffet’s prompting). 

Chouinard has always acted on his values and operated on the basis of principles that were about more than commerce and capitalism. They were centered around his love for the environment and the planet and he dedicated his life and company to this end. All of which has culminated in a momentous act that will deliver tangible impact for generations to come.

You know, I’ve talked a lot on this site about the role of values, of having a clearly defined mission, of believing in what you do. I’ve talked about the need to deliver our (commercial) work in a way that serves a greater cause. I believe this to be true.

But I also realize that while we can all nod our heads and agree that that should be the case, it’s also very easy to be diverted by the nitty-gritty of everyday life, absorbed by its practicalities and its resultant trade-offs. As a result, we often lose sight of why we set out in the first place.

But here - in Yves Chouinard - is an example of someone who has not only talked the talk but walked the walk, right through to the end. He didn’t bank his billions, but rather, as someone with a distaste for excessive wealth, he gave it away. That’s not something most folks would do.

Of course, I appreciate he’s an exception in terms of the scale and impact of his generosity, which I also appreciate isn’t something most of us will ultimately model. 

But it is worth noting that he was value-led and principle-centered, and he translated these to his business - and that is certainly something we can model.

“I didn’t know what to do with the company because I didn’t ever want a company,” he said from his home in Jackson, Wyo. “I didn’t want to be a businessman. Now I could die tomorrow and the company is going to continue doing the right thing for the next 50 years, and I don’t have to be around.” - Yves Chouinard