Abstract

Lululemon Athletica (Lululemon), a Canada-based sports and yoga wear retailer, was founded by Dennis Chip Wilson (Wilson) in 1999. Lululemon’s products, which were premium priced, gained popularity among yoga practitioners and other fitness conscious people. As of 2014, the company operated through 254 stores across the world. Since its inception, Lululemon had emphasized sustainable business and operating in an ethical manner. The company projected its sustainability vision as elevating the world from mediocrity to greatness by embracing social, environmental, and economic health in every part of its organization and its global communities. But over the years, the company became mired in several controversies, ranging from false claims about the presence of seaweed in its clothing, to the presence of lead in some of its products, transparent yoga pants, etc., which made even loyal customers shy away from the brand. The company’s problems were compounded by ill-judged remarks made by Wilson, whose opinions on child labor, women’s dressing, and career-oriented women, had a negative impact on the company. To make matters worse, several competitors emerged in the sports apparel sector, posing a threat to Lululemon. The case discusses the origins of the company and how a company, established on the vision of ‘mediocrity to greatness’, went on to become highly popular. It also discusses how Wilson built Lululemon as an ethical brand and as a sustainable company. The case then explains some of the controversies Lululemon faced and their impact on the company.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand issues related to corporate sustainability and being a globally and environmentally responsible company.
• Understand the concept of greenwashing
• Evaluate the methods by which companies can practice sustainability management and gain competitive advantage.
• Explain what it means to be a sustainable business and the relationship between profitability and sustainability.
• Understand the role of the entrepreneur / leader in incorporating and managing an ethical company

Keywords

Retailing,Brand Building,Sustainable and ethical practices,Controversies,Repercussion,Greenwashing,Company vs customer perspective,Business ethics,Ethics and values