Case Study- lululemon
Ethics and Social Responsibility
Founded in 1998, lululemon has become an extremely successful company. Over the last 12 years of operation, its mission is to improve health, make a difference in all the communities it is located in, and provide guests with quality products to help them live healthy lives.
Currently, lululemon still strives to make a difference in each community through the Community Legacies Program. Plans for expansion are also in effect, and its economic responsibilities are continually being met by the income generated each year.
Social Responsibility is the backbone of lululemon. It presents many positive aspects for the ...view middle of the document...
The company was founded in 1998 by Chip Wilson, who started the company with the idea that his products would help "improve the level of health within a community." Responding to the increased number of women participating in Yoga, lululemon has created products with new innovative fabrics and technology to fit, and feel better which helps women improve their fitness goals. They have provided a culture that provides awareness of the health benefits of doing yoga in daily life.
lululemon’s mission statement is to help people live long, healthy, and fun filled lives. They focus on ensuring that their products are of the highest quality and that their store experiences are one of a kind. lululemon invests money in training to educate their staff on effective and creative ways to create a unique experience in each individual store.
With deep rooted ties in each community, lululemon created the charitable giving program, where guests of each location decide which local charities they would like to support. lululemon then chooses up to eight of these charities to be part of the program.
lululemon has established their popular Community Legacies program which is a “5-year vision that is based on the belief that every person we hire, garment we create, store we open, customer we educate and yoga class we attend contributes to building a legacy in our communities."
In 2009, lululemon’s net income generated about 58.3 million dollars. Their earnings have topped the Street's consensus for seven consecutive quarters. It is also bringing U.S stores to the same level as Canadian stores. The 44 stores in Canada (35% of the total) generated 60% of revenues last year.
For the year of 2010, lululemon has plans on opening 12 to 15 new stores this year; it aims to open 25 showrooms by June of the following year and 20 by August.
“CFO John Currie projects a possible 300 stores in North America, with Asian expansion likely into 2012.”
lululemon athletica has become a strong and successful company which can be measured economically, as well as by social responsibility. By being socially responsible and utilizing their strong code of ethics, lululemon has created a prestigious reputation for itself by effectively serving the interests of the customer by creating new, quality goods that helps benefit the customers’. lululemon has also fulfilled customer interests by letting them choose which charities in the community they want to support. lululemon also acts in a socially responsible manner by having in store yoga classes for customers to fulfill their mission of helping people live healthier, longer lives.
Although lululemon athletica is a very strong company, it has some weaknessness. By acting in a socially responsible manor, this may cause a halt in the company’s economic increase. Profit loss may be a main consequence of investing so much money for training, hiring yoga instructors, and supporting charities. In a...