W7 Discussion: Lululemon: Turning Lemons into Lemonade

Chapter 12: Lululemon: Turning Lemons into Lemonade: 12-4a Corporate Culture Book Title: Business Ethics: Ethical Decision Making and Cases Printed By: Kennisha Holloman ([email protected]) © 2019 Cengage Learning, Cengage Learning

12-4a Corporate Culture

As mentioned earlier, Wilson founded his company based upon the values of Ayn Rand.

The notion of striving for greatness resonated with Wilson after having read Rand’s book

Atlas Shrugged at the age of 18. Since then, he has utilized the concept as a way to market

his brand. This idea of “greatness” contributes to a competitive organizational culture.

Wilson admits that the firm tries to hire employees with Type A personalities, or those with

more competitive personalities who are concerned with achievement and personal

improvement. New hires read books selected by Chip Wilson that he felt were critical to

personal development. Employees are also required to write out their goals for the next 10

years, which are then posted in Lululemon stores. Employees are encouraged to exercise

regularly and remain close-knit.

Some have questioned how this competitive culture obsessed with greatness fits in with the

yoga tradition based on Buddhist and Hindu philosophies. Both ideologies promote the

notion of ridding one’s self of the Ego. The Ego is seen as a source of suffering, and

Buddhism is based on the absolution of suffering. Enlightenment is achieved when the Ego

has been successfully removed. There are specific postures used to accomplish this, and it

can take years of practice. On the other hand, one of the criticisms of Lululemon goes back

to Ayn Rand’s teachings and their promotion of “rugged individualism,” the elevation of

mediocrity to greatness, and the relentless pursuit of happiness. Despite it being a

business, some believe that these “individual” teachings do not belong in the yoga clothing

industry because they directly contradict the Vedic philosophy that underlies yoga. Others

have claimed that Lululemon’s corporate culture is almost “cultish” in its style. When

Lululemon donated $750,000 to the Dalai Lama Center for Peace and Education, it received

both praise and criticism. While the Dalai Lama Center’s chairman cited the company’s

generosity, critics believed the Dalai Lama should not be associated with a profit-making

organization. However, the company claims that the donation fits well with its vision of mind-

body-heart.

In March 2011, an employee of a Lululemon store located in Bethesda, Maryland, was

brutally murdered by her coworker after hours. It is believed the employee had observed the

coworker trying to steal clothing from Lululemon. After the store closed, the coworker lured

the employee back into the store and brutally murdered her. She then attempted to make

the scene look as if two masked men had broken in and harmed them. After the truth was

revealed, the coworker was sentenced to life in prison without parole.

Lululemon and many others attribute this brutality as a random act of violence. However,

those who describe the corporate culture as “cultish” and “competitive” argue that the

culture creates an environment where employees are pressured to live up to company

standards. Although this in itself is certainly not the reason for the murder, critics have

sometimes charged Lululemon with having an unethical corporate culture promoting

competition over collaboration.

Chapter 12: Lululemon: Turning Lemons into Lemonade: 12-4a Corporate Culture

Book Title: Business Ethics: Ethical Decision Making and Cases Printed By: Kennisha Holloman ([email protected]) © 2019 Cengage Learning, Cengage Learning

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