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The ERic RIES Show
Curated conversations
At the Long-Term Stock Exchange, we are dedicated to creating a world where businesses are empowered to achieve lasting impact and long-term prosperity.
To foster meaningful conversations, we curate conversations from an ecosystem of leaders, entrepreneurs, and visionaries.
The Eric Ries Show, a podcast produced by Founder and Chair of LTSE Services, Eric Ries, reflects our mission.
The show features thought-provoking conversations with world-class technologists, thought leaders, executives, and others who are working to create a new ecosystem of organizations committed to growth with purpose.
To foster meaningful conversations, we curate conversations from an ecosystem of leaders, entrepreneurs, and visionaries.
The Eric Ries Show, a podcast produced by Founder and Chair of LTSE Services, Eric Ries, reflects our mission.
The show features thought-provoking conversations with world-class technologists, thought leaders, executives, and others who are working to create a new ecosystem of organizations committed to growth with purpose.
Disclaimer: Information contained in this podcast was obtained in part from publicly available sources (including the Eric Ries Show) and not independently verified. The Long-Term Stock Exchange and its affiliated companies do not make any representations or warranties, express or implied, as to the accuracy or completeness of the information and do not sponsor, approve, or endorse any of the content herein, all of which is presented solely for informational and educational purposes. Nothing herein constitutes an offer to sell, a solicitation to buy any security, or a recommendation of any security or trading practice.
Some portions of the podcast may have been edited for the purpose of length or clarity.
From the Eric Ries Show:
From Blacksmith to Billionaire: The Making of Patagonia’s Ethos
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Patagonia has always been different. While so many companies lose their way when profits come before people, the planet, or even their own products, Patagonia continues to stay true to its values.
In today’s episode of The Eric Ries Show, I speak with journalist David Gelles, author of Dirtbag Billionaire, his new book about founder Yvon Chouinard. We explore how Chouinard built Patagonia with an ethos of quality and conservation, how he resisted the corrupting pull of profit-at-all-costs, and why he ultimately gave the company away to protect its mission.
We talk about what Patagonia’s story reveals about the possibility of building ethical companies that not only survive but thrive. And we make the case for putting strong protections in place from the very beginning, so that a company’s purpose can endure long after its founder is gone.
—
Where to find David Gelles:
• LinkedIn: https://www.linkedin.com/in/davidgelles/
• Substack: https://davidgelles.substack.com/
• Website: https://davidgelles.com/
—
Where to find Eric:
• Newsletter:https://ericries.carrd.co/
• Podcast:https://ericriesshow.com/
—
In This Episode We Cover:
(00:00) Intro
(02:30) Why Patagonia remains so little understood despite its visibility
(05:47) How Yvon Chouinard resisted the corrupting influence of wealth
(07:48) How Yvon’s rural upbringing shaped his enduring ethos
(11:51) The pivotal moments that revealed a market for Yvon’s high-quality gear
(16:17) Yvon’s partnership with Tom Frost and the expansion from climbing gear into apparel
(18:06) How a local river fight sparked Yvon’s lifelong activism
(21:32) Why Patagonia was able to resist the corporate pressures that erode values
(27:46) David on what corruption meant to Yvon and his uncompromising philosophy
(30:03) LTSE and alternative structures that protect values
(33:48) A short history of shareholder primacy and general incorporation
(36:03) Yvon’s aversion to conventional business culture
(37:44) Doug Tompkins’s contrasting path from luxury to large-scale conservation
(40:33) Yvon’s behind-the-scenes funding of Tompkins Conservation
(42:19) Patagonia’s values of quality and conservation and the movements it spurred
(51:11) Tony’s Chocolonely’s ethical approach to chocolate and influence on supply chains
(52:34) How Yvon structured succession to protect Patagonia’s values
(1:02:33) Examples of foundation-owned companies: Grundfos and Zeiss
(1:03:47) A case for building protective structures from day one
(1:06:06) Why mission-aligned, ethical companies don’t get as much press
(1:10:04) The long-term value of taking the harder road
(1:16:25) What financial reporting teaches us about prioritizing ethics
(1:22:03) Why every company must define its own purpose
(1:24:59) Final reflections on why companies can be run with values and integrity
—
Referenced:
- Patagonia: https://www.patagonia.com/
- Yvon Chouinard on Facebook: https://www.facebook.com/p/Yvon-Chouinard-100053120027508/
- Dirtbag Billionaire: How Yvon Chouinard Built Patagonia, Made a Fortune, and Gave It All Away: https://www.amazon.com/Dirtbag-Billionaire-Chouinard-Patagonia-Fortune/dp/1668032260
- Douglas Tompkins: https://en.wikipedia.org/wiki/Douglas_Tompkins
- Esprit: https://esprit.com/
- The North Face: https://www.thenorthface.com/
- Tom Frost: https://en.wikipedia.org/wiki/Tom_Frost
- Mark Capelli on LinkedIn: https://www.linkedin.com/in/mark-capelli-b80a4017/
- Patagonia vs. Trump: https://www.nytimes.com/2018/05/05/business/patagonia-trump-bears-ears.html
- Let My People Go Surfing: The Education of a Reluctant Businessman: https://www.amazon.com/Let-People-Surfing-Education-Businessman/dp/0143037838
- The Man Who Broke Capitalism: How Jack Welch Gutted the Heartland and Crushed the Soul of Corporate America―and How to Undo His Legacy: https://www.amazon.com/Man-Who-Broke-Capitalism-America_and/dp/198217644X
- The Long Term Stock Exchange: https://ltse.com/
- James Sinegal: https://en.wikipedia.org/wiki/James_Sinegal
- Kris Tompkins: https://en.wikipedia.org/wiki/Kris_Tompkins
- Tompkins Conservation: https://www.tompkinsconservation.org/
- Don’t Buy This Jacket, Black Friday and the New York Times: https://www.patagonia.com/stories/dont-buy-this-jacket-black-friday-and-the-new-york-times/story-18615.html
- James McNerney: https://en.wikipedia.org/wiki/James_McNerney
- Jack Welch: https://en.wikipedia.org/wiki/Jack_Welch
- Textile Exchange: https://textileexchange.org/
- 1% for the Planet: https://www.onepercentfortheplanet.org/
- Time to Vote: https://www.maketimetovote.org/
- Regenerative Organic Coalition: https://regenorganic.org/
- B Corporation: https://en.wikipedia.org/wiki/B_Corporation_(certification)
- Tony’s Chocolonely: https://us.tonyschocolonely.com/
- Mr. Beast Feastables: https://feastables.com/
- Grundfos: https://en.wikipedia.org/wiki/Grundfos
- Zeiss: https://www.zeiss.com/
- Volvo’s Gift To The World, Modern Seat Belts Have Saved Millions Of Lives: https://www.forbes.com/sites/douglasbell/2019/08/13/60-years-of-seatbelts-volvos-great-gift-to-the-world/
- The Lord of the Rings: https://en.wikipedia.org/wiki/The_Lord_of_the_Rings
—
Production and marketing by Pen Name.
Eric may be an investor in the companies discussed.
Show Notes
Patagonia has always been different. While so many companies lose their way when profits come before people, the planet, or even their own products, Patagonia continues to stay true to its values.
In today’s episode of The Eric Ries Show, I speak with journalist David Gelles, author of Dirtbag Billionaire, his new book about founder Yvon Chouinard. We explore how Chouinard built Patagonia with an ethos of quality and conservation, how he resisted the corrupting pull of profit-at-all-costs, and why he ultimately gave the company away to protect its mission.
We talk about what Patagonia’s story reveals about the possibility of building ethical companies that not only survive but thrive. And we make the case for putting strong protections in place from the very beginning, so that a company’s purpose can endure long after its founder is gone.
—
Where to find David Gelles:
• LinkedIn: https://www.linkedin.com/in/davidgelles/
• Substack: https://davidgelles.substack.com/
• Website: https://davidgelles.com/
—
Where to find Eric:
• Newsletter:https://ericries.carrd.co/
• Podcast:https://ericriesshow.com/
—
In This Episode We Cover:
(00:00) Intro
(02:30) Why Patagonia remains so little understood despite its visibility
(05:47) How Yvon Chouinard resisted the corrupting influence of wealth
(07:48) How Yvon’s rural upbringing shaped his enduring ethos
(11:51) The pivotal moments that revealed a market for Yvon’s high-quality gear
(16:17) Yvon’s partnership with Tom Frost and the expansion from climbing gear into apparel
(18:06) How a local river fight sparked Yvon’s lifelong activism
(21:32) Why Patagonia was able to resist the corporate pressures that erode values
(27:46) David on what corruption meant to Yvon and his uncompromising philosophy
(30:03) LTSE and alternative structures that protect values
(33:48) A short history of shareholder primacy and general incorporation
(36:03) Yvon’s aversion to conventional business culture
(37:44) Doug Tompkins’s contrasting path from luxury to large-scale conservation
(40:33) Yvon’s behind-the-scenes funding of Tompkins Conservation
(42:19) Patagonia’s values of quality and conservation and the movements it spurred
(51:11) Tony’s Chocolonely’s ethical approach to chocolate and influence on supply chains
(52:34) How Yvon structured succession to protect Patagonia’s values
(1:02:33) Examples of foundation-owned companies: Grundfos and Zeiss
(1:03:47) A case for building protective structures from day one
(1:06:06) Why mission-aligned, ethical companies don’t get as much press
(1:10:04) The long-term value of taking the harder road
(1:16:25) What financial reporting teaches us about prioritizing ethics
(1:22:03) Why every company must define its own purpose
(1:24:59) Final reflections on why companies can be run with values and integrity
—
Referenced:
- Patagonia: https://www.patagonia.com/
- Yvon Chouinard on Facebook: https://www.facebook.com/p/Yvon-Chouinard-100053120027508/
- Dirtbag Billionaire: How Yvon Chouinard Built Patagonia, Made a Fortune, and Gave It All Away: https://www.amazon.com/Dirtbag-Billionaire-Chouinard-Patagonia-Fortune/dp/1668032260
- Douglas Tompkins: https://en.wikipedia.org/wiki/Douglas_Tompkins
- Esprit: https://esprit.com/
- The North Face: https://www.thenorthface.com/
- Tom Frost: https://en.wikipedia.org/wiki/Tom_Frost
- Mark Capelli on LinkedIn: https://www.linkedin.com/in/mark-capelli-b80a4017/
- Patagonia vs. Trump: https://www.nytimes.com/2018/05/05/business/patagonia-trump-bears-ears.html
- Let My People Go Surfing: The Education of a Reluctant Businessman: https://www.amazon.com/Let-People-Surfing-Education-Businessman/dp/0143037838
- The Man Who Broke Capitalism: How Jack Welch Gutted the Heartland and Crushed the Soul of Corporate America―and How to Undo His Legacy: https://www.amazon.com/Man-Who-Broke-Capitalism-America_and/dp/198217644X
- The Long Term Stock Exchange: https://ltse.com/
- James Sinegal: https://en.wikipedia.org/wiki/James_Sinegal
- Kris Tompkins: https://en.wikipedia.org/wiki/Kris_Tompkins
- Tompkins Conservation: https://www.tompkinsconservation.org/
- Don’t Buy This Jacket, Black Friday and the New York Times: https://www.patagonia.com/stories/dont-buy-this-jacket-black-friday-and-the-new-york-times/story-18615.html
- James McNerney: https://en.wikipedia.org/wiki/James_McNerney
- Jack Welch: https://en.wikipedia.org/wiki/Jack_Welch
- Textile Exchange: https://textileexchange.org/
- 1% for the Planet: https://www.onepercentfortheplanet.org/
- Time to Vote: https://www.maketimetovote.org/
- Regenerative Organic Coalition: https://regenorganic.org/
- B Corporation: https://en.wikipedia.org/wiki/B_Corporation_(certification)
- Tony’s Chocolonely: https://us.tonyschocolonely.com/
- Mr. Beast Feastables: https://feastables.com/
- Grundfos: https://en.wikipedia.org/wiki/Grundfos
- Zeiss: https://www.zeiss.com/
- Volvo’s Gift To The World, Modern Seat Belts Have Saved Millions Of Lives: https://www.forbes.com/sites/douglasbell/2019/08/13/60-years-of-seatbelts-volvos-great-gift-to-the-world/
- The Lord of the Rings: https://en.wikipedia.org/wiki/The_Lord_of_the_Rings
—
Production and marketing by Pen Name.
Eric may be an investor in the companies discussed.
Disclaimer
The information is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Information about the company is provided by the company, or comes from the companies’ public filings and is not independently verified by LTSE. Neither LTSE nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding LTSE-listed companies are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. Advice from a securities professional is strongly advised.
Curated Conversations
