1. As a responsible leader, Yvon Chouinard made sure that he sets a good example to other people. He was an elite rock climber who started his career during the 1950s, but he did not only do it for the sake of the sport. He made sure that he was able to impart for the betterment of the environment. He was a leader who leads with passion, for example, his love for rock climbing made him establish the Patagonia Company that sell climbing shirts and apparels. He was not only a good leader to rock climbing enthusiast, but also to other business by setting a good example in terms of each business man’s social and environmental responsibility.
2. Other business executives who also meet the criteria for responsible leadership include include Jeffery Immelt, the CEO of General Electric who pointed that their company effort to invest in environment-friendly technology is not founded on their belief that it will help in sustaining the viability of the business (Witt & Stahl, 2016). Another Asian corporate executive, Konosoke Matsushita, the founder of Matsushita Electric Industrial Co., expressed that they recognized their responsibility as industry leaders in devoting towards the progress and development of the society (Mitchell, 2009).
3. Publicly held corporations must follow Chouninard’s example of responsible leadership. They should try to do so because, more often than not, their activities also contribute to the deterioration of the environment. Social and environmental responsibility should not only be confined to big industrial players, but to publicly listed or not-for-profit organizations. However, the leaders of publicly traded corporations must also be wary about the possibility of investing in socially responsible programs.
4. The Patagonia leadership is highly commended for its advocacy in promoting social and environmental leadership. Initially, the Chounard started the company by seeking rock climbing apparel, and its operation highly reflected the business’ commitment towards helping preserve a sustainable environment. Further, the company extended its environmental vision by developing a coalition with other clothing manufacturers. The collation with other companies is in line with keeping with the goal of reducing the adverse impact of business operations to the environment.
However, it is also noted that Patagonia has put too much emphasis on its environmental advocacy. Consequently, the increased concentration on the environment has hurt other aspects of its operation. For example, encouraging the customers to buy less and advising them to buy only what they need can have a detrimental impact on sales. As a result, a considerable decrease in profit is expected, and this may result to laying off of many employees.
5. The benefits derived from benefit corporation laws makes it advisable for U.S states adopt it. This is because the adoption of this law can have a positive impact, not only in gaining additional profit and in strengthening its support to the environment, but also in helping the employees, the community and the environment as a whole. In the case of Patagonia, the law protected the company and help support its environmental causes even in an instance that the business becomes public. The benefit corporations have the advantage because their mission-driven advocacies and their operation as a whole are legally protected. The benefit corporation laws are integrated with the existing state laws, making them apply to every aspect of the business’ operations.
References
Mitchell, C. (2009). A short course in international business ethics. World Trade Press.
Witt, M., & Stahl, G. (2016). Foundations of responsible leadership: Asian versus western executive responsibility orientations toward key stakeholders. Journal of Business Ethics, 136(3), 623-638. Retrieved from http://link.springer.com/article/10.1007/s10551-014-2534-8
