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Assignment Four
Read chapters 8, 9, & 10 then complete the following:
Chapter Eight
Part one: Complete End of Chapter Questions 1, 6, & 8.
Part two: Complete End of Chapter Exercise
Part three: Skim through the timeline of U.S. immigration
history (see below) and state whether you think the laws
benefitted the U.S. workplace or reduced fear of American
citizens or both? Why?
Chapter Nine
Part one: Complete End of Chapter Questions 2, 6 (be specific
in your answer) & 9.
Part two: Complete End of Exercise
Part three: In a paragraph, explain: How can managers
utilize the information provided in this chapter to prevent
discrimination against religion which is a protected class under
the 1964 Civil Rights Act?
Chapter Ten
Part one: Complete End of Chapter Questions 1, 3, 4, & 6.
Part two: In a paragraph, explain: How a hiring manager could
violate the rights of the disabled by simply not asking what
question(s) at the interview or prior to be hired.
Timeline
Key Dates and Landmarks in United States Immigration History
1789
The Constitution of the United States of America takes effect,
succeeding the Articles of Confederation that had governed the
union of states since the conclusion of the Revolutionary War
(March 4, 1789).
1790
The Naturalization Act of 1790 establishes a uniform rule of
naturalization and a two-year residency requirement for aliens
who are "free white persons" of "good moral character" (March
26, 1790).
1798
Considered one of the Alien and Sedition Acts, the
Naturalization Act of 1798 permits Federalist President John
Adams to deport foreigners deemed to be dangerous and
increases the residency requirements to 14 years to prevent
immigrants, who predominantly voted for the Republican Party,
from becoming citizens (June 25, 1798).
1802
The Jefferson Administration revises the Naturalization Act of
1798 by reducing the residency requirement from 14 to five
years.
1808
Importation of slaves into the United States is officially banned,
though it continues illegally long after the ban.
1819
Congress passes an act requiring shipmasters to deliver a
manifest enumerating all aliens transported for immigration.
The Secretary of State is required to report annually to
Congress the number of immigrants admitted.
1821–1830
143,439 immigrants arrive
1831–1840
599,125 immigrants arrive
1840s
Crop failures in Germany, social turbulence triggered by the
rapid industrialization of European society, political unrest in
Europe, and the Irish Potato Famine (1845–1851) lead to a new
period of mass immigration to the United States.
1841–1850
1,713,251 immigrants arrive
1848
The Treaty of Guadalupe Hidalgo ends the Mexican-American
War and extends citizenship to the approximately 80,000
Mexicans living in Texas, California, and the American
Southwest.
1848
Gold is discovered in the American River, near Sacramento,
California.
1849
The California gold rush spurs immigration from China and
extensive internal migration.
1850
For the first time, the United States Census surveys the
"nativity" of citizens (born inside or outside the US).
1851–1860
2,598,214 immigrants arrive
1854
The Know-Nothings, a nativist political party seeking to
increase restrictions on immigration, win significant victories in
Congress, a sign of popular dissatisfaction with growing
immigration from Catholic Ireland. Protestant Americans feared
that growing Catholic immigration would place American
society under control of the Pope.
1855
Castle Garden is established as New York's principal point of
entry.
1861–1870
2,314,825 immigrants arrive
1861
Outbreak of the American Civil War (April 12, 1861).
1862
The Homestead Act provides free plots of up to 160 acres of
western land to settlers who agree to develop and live on it for
at least five years, thereby spurring an influx of immigrants
from overpopulated countries in Europe seeking land of their
own.
1862
The "Anti-Coolie" Act discourages Chinese immigration to
California and institutes special taxes on employers who hire
Chinese workers.
1863
Riots against the draft in New York City involve many
immigrants opposed to compulsory military service (July 13–16,
1863).
1863
The Central Pacific hires Chinese laborers and the Union
Pacific hires Irish laborers to construct the first transcontinental
railroad, which would stretch from San Francisco to Omaha,
allowing continuous travel by rail from coast to coast.
1869
The First Transcontinental Railroad is completed when the
Central Pacific and Union Pacific lines meet at Promontory
Summit, Utah (May 10, 1869).
1870
The Naturalization Act of 1870 expands citizenship to both
whites and African-Americans, though Asians are still excluded.
1870
The Fifteenth Amendment is ratified, granting voting rights to
citizens, regardless of "race, color, or previous condition of
servitude."
1870
Jacob Riis, who later pioneered photojournalism and authored
How the Other Half Lives, emigrates from Denmark to the
United States.
1871–1880
2,812,191 immigrants arrive
1881–1890
5,246,613 immigrants arrive
1881–1885
1 million Germans arrive in the peak of German immigration
1881–1920
2 million Eastern European Jews immigrate to the United States
1882
The Chinese Exclusion Act restricts all Chinese immigration to
the United States for a period of ten years.
1882
The Immigration Act of 1882 levies a tax of 50 cents on all
immigrants landing at US ports and makes several categories of
immigrants ineligible for citizenship, including "lunatics" and
people likely to become public charges.
1885
The Alien Contract Labor Law prohibits any company or
individual from bringing foreigners into the United States under
contract to perform labor. The only exceptions are those
immigrants brought to perform domestic service and skilled
workmen needed to help establish a new trade or industry in the
US.
1886
The Statue of Liberty is dedicated in New York Harbor.
1886
Emma Goldman, Lithuanian-born feminist, immigrates to the
United States, where over the next 30 years she will become a
prominent American anarchist. During the First World War, in
1917, she is deported to Russia for conspiring to obstruct the
draft.
1889
Jane Addams and Ellen Gates Starr found Hull-House in
Chicago.
1890
The demographic trends in immigration to the United States
shift as immigration from Southern and Eastern Europe
substantially increases, while the relative proportion of
immigration from Northern and Western Europe begins to
decrease.
1891–1900
3,687,564 immigrants arrive.
1891
Congress makes "persons suffering from a loathsome or a
dangerous contagious disease," those convicted of a
"misdemeanor involving moral turpitude," and polygamists
ineligible for immigration. Congress also establishes the Office
of the Superintendent of Immigration within the Treasury
Department.
1892
The Geary Act extends the Chinese Exclusion Act for ten more
years, and adds the requirement that all Chinese residents carry
permits, as well as excluding them from serving as witnesses in
court and from bail in habeus corpus proceedings.
1892
Ellis Island, the location at which more than 16 million
immigrants would be processed, opens in New York City.
1901–1910
8,795,386 immigrants arrive
1901
After President William McKinley is shot by a Polish anarchist
(September 6, 1901) and dies a week later (September 14,
1901), Congress enacts the Anarchist Exclusion Act, which
prohibits the entry into the US of people judged to be anarchists
and political extremists.
1902
The Chinese Exclusion Act is again renewed, with no ending
date.
1906
The Naturalization Act of 1906 standardizes naturalization
procedures, makes some knowledge of the English language a
requirement for citizenship, and establishes the Bureau of
Immigration and Naturalization in the Commerce Department to
oversee national immigration policy.
1907
The Expatriation Act declares that an American woman who
marries a foreign national loses her citizenship.
1907
Under an informal "Gentlemen's Agreement," the United States
agrees not to restrict Japanese immigration in exchange for
Japan's promise to voluntarily restrict Japanese emigration to
the United States by not issuing passports to Japanese laborers.
In return, the US promises to crack down on discrimination
against Japanese-Americans, most of whom live in California.
1907
The Dillingham Commission is established by Congress to
investigate the effects of immigration on the United States.
1911–1920
2 million Italians arrive in the peak of Italian immigration
1911–1920
5,735,811 immigrants arrive
1911
The Dillingham Commission, established in 1907, publishes a
42-volume report warning that the "new" immigration from
Southern and Eastern Europe threatens to subvert American
society. The Dillingham Commission's recommendations lay the
foundation for the Quota Acts of the 1920s.
1913
California's Alien Land Law prohibits "aliens ineligible for
citizenship" (Chinese and Japanese) from owning property in
the state, providing a model for similar anti-Asian laws in other
states.
1917
Congress enacts a literacy requirement for immigrants by
overriding President Woodrow Wilson's veto. The law requires
immigrants to be able to read 40 words in some language and
bans immigration from Asia, except for Japan and the
Philippines.
1917
The US enters the First World War.
1917
The Immigration Act of 1917 restricts immigration from Asia
by creating an "Asiatic Barred Zone."
1917
The Jones-Shafroth Act grants US citizenship to Puerto Ricans,
provided that they can be recruited by the US military.
1919
The First Red Scare leads to an outbreak of fear and violence
against people deemed to be political radicals and foreigners
considered to be susceptible to communist propaganda and more
likely to be involved in the Bolshevik Revolution.
1921–1930
4,107,209 immigrants arrive.
1921
The Emergency Quota Act restricts immigration from a given
country to 3% of the number of people from that country living
in the US in 1910.
1922
The Cable Act partially repeals the Expatriation Act, but
declares that an American woman who marries an Asian still
loses her citizenship.
1923
In the landmark case of United States v. Bhaghat Singh Thind,
the Supreme Court rules that Indians from the Asian
subcontinent cannot become US citizens.
1924
The Immigration Act of 1924 limits annual European
immigration to 2% of the number of people from that country
living in the United States in 1890. The Act greatly reduces
immigration from Southern and Eastern European nationalities
that had only small populations in the US in 1890.
1924
The Oriental Exclusion Act prohibits most immigration from
Asia, including foreign-born wives and the children of
American citizens of Chinese ancestry.
1924
The Border Patrol is created to combat smuggling and illegal
immigration.
1929
The National Origins Formula institutes a quota that caps
national immigration at 150,000 and completely bars Asian
immigration, though immigration from the Western Hemisphere
is still permitted.
1931–1940
532,431 immigrants arrive.
1933
To escape persecution by the Nazis, Albert Einstein, the
greatest theoretical physicist of the century, immigrates to the
United States from Germany.
1934
The Tydings-McDuffe Act grants the Philippines independence
from the United States on July 4, 1946, but strips Filipinos of
US citizenship and severely restricts Filipino immigration to the
United States.
1940
The Alien Registration Act requires the registration and
fingerprinting of all aliens in the United States over the age of
14.
Sources
Calavita, Kitty. US Immigration Law and the Control of Labor:
1820-1924. London, Orlando: Academic Press, 1984.
Digital History: Ethnic Voices.
LeMay, Michael and Robert Barkan Elliott, eds., US
Immigration and Naturalization Laws and Issues: A
Documentary History. Westport, Conn.: Greenwood Press, 1999.
Smith, Marian L. Overview of INS History to 1998.
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Photograph by Tierney Gearon
BOARD MEETING Yvon Chouinard (seated), Patagonia's
founder, at his home in Ventura, California. When the
waves are rolling, his staff goes surfing, thanks to the
company's flex-time policy.
By SETH STEVENSON
A couple of
years ago, Yvon
Chouinard—
founder of the
outdoor-
clothing brand
Patagonia—
gave a talk at a
sustainable-
fisheries
conference in
Vancouver.
He'd been
invited to speak
in recognition
of Patagonia's
longtime
commitment to
environmental
issues and its
reputation as a
company that
manages to churn out profit while minimizing ecological
impact. Chouinard delivered his spiel, but he came
away frustrated by the surprising ignorance of his audience.
"They didn't know what they were doing," he says
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WSJ. MAGAZINE Updated April 26, 2012, 8:23 p.m. ET
Patagonia's Founder Is America's
Most Unlikely Business Guru
For years, Yvon Chouinard kept his eco-conscious, employee-
friendly practices largely to himself.
Now megacorporations like Walmart, Levi Straus and Nike are
following his lead.
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Photograph by Tierney Gearon
Chouinard's blacksmith shop, where he has forged
climbing equipment for 30 years.
of the seafood merchants. "They had no idea about toxins, about
incidental catch. Their customers are all going
to want to know this stuff soon. Restaurants will want to know."
So, despite having zero background in the food business,
Chouinard decided to launch his own salmon fishery.
Patagonia Provisions, which debuted at the beginning of April,
sells packets of salmon jerky ($12.50 for two
ounces) next to rain jackets, hiking pants and organic cotton
shirts. The salmon is caught in British Columbia's
Skeena River, using traditional equipment that the company
describes as "First Nations fish wheels and dip
nets." Chouinard has so far poured $1.3 million into this curious
experiment. He isn't sure when he'll make it
back. "I can't help myself," he says. "I just want to show the
fishing industry how it can be done."
The idealism, ambition, self-assurance and total hubris at the
heart of this salmon escapade are all hallmarks of the
Chouinard executive style. His approach to leading a company
is perhaps best understood as a sort of performance art—less
about the bottom line than about providing a road map for
future entrepreneurs. "I never even wanted to be in business,"
he says. "But I hang onto Patagonia because it's my resource to
do something good. It's a way to demonstrate that corporations
can lead examined lives."
That mission is already well under way. Chouinard's new book,
"The Responsible Company," published this month, offers
detailed checklists for making money without inflicting undue
societal harm. Even megacorporations are paying attention to
him these days. Chouinard has partnered with
Walmart—an odd couple if there ever was one, in terms of size
(Walmart's revenue exceeds Patagonia's 800-
fold) and customer base—to advise the retail giant on reducing
packaging and water use in its supply chains.
Together the two companies teamed up to create the Sustainable
Apparel Coalition, inviting other major
brands, such as Levi Strauss, Nike, Gap and Adidas to join them
in crafting clear, quantifiable standards for
environmentally responsible clothing production. "I adore
Yvon," says Mary Fox, an executive in charge of
Walmart's global sourcing. "When we went around together to
get other companies on board, we code-named
ourselves David and Goliath. Because in the realm of
sustainability, we were David. Patagonia was Goliath."
At 73, Chouinard is a short, thick fireplug of a man who still
looks barely 60. He is fit and tan from surfing,
which he does any day there are half-decent waves. He prowls
Patagonia's headquarters, in Ventura, California,
checking in on new designs (he showed me a sturdy down jacket
that felt about as heavy as a paperclip and then
said he'd kill me before telling me how they make it) and
tinkering with a lightweight camp stove of his own
invention at his desk. If he so chose, he could be easing himself
into a delightfully active retirement: He and his
wife are sole owners of Patagonia, a privately held company
that brought in $414 million in sales last year and is
projecting a 30 percent increase in sales this year. With little
left to prove, Chouinard could sell the company
and happily spend his time catching breakers (here or at his
other home up the coast, in Hollister Ranch), fly
fishing (near his house in Jackson, Wyoming, using flies he ties
himself), and mentoring and donating to his
favored environmental causes. But Patagonia's forefather isn't
quite done with Patagonia yet.
The evolution of Patagonia into a clothing company began in
the 1970s, when Chouinard—then a world-class
mountain climber and a designer of mountaineering
equipment—started importing durable rugby shirts and
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corduroy knickers for his climber pals to wear. Soon enough,
Patagonia was designing its own line of clothes.
Soon after that, sales of the clothes far outstripped sales of the
climbing gear. This is how Yvon Chouinard
became an accidental apparel mogul. This truly hit home when
fashion models in New York City started
wearing Patagonia fleece vests. He had no idea why, and didn't
really care. But he realized his life had changed.
At his weathered beachside home in a gated enclave a few miles
north of Patagonia's headquarters, Chouinard
puts out a plateful of his salmon, smoked and sliced. "This isn't
the farmed stuff," he says through bites. "Fresh
caught." We nibble on almonds he roasted himself, sip from a
chilled bottle of chenin blanc he's uncorked and
talk about his improbable journey.
Chouinard was born in Maine, in far less posh environs, to
French-Canadian parents who transplanted the
family to Burbank, California, when he was seven. He didn't
learn English until he was eight and says he spent
much of his childhood in and around the Los Angeles River,
wading for crawdads or hunting rabbits with a bow
and arrow. By high school, he'd discovered rock climbing,
becoming a self-described "dirtbag" who loved to
tackle risky ascents.
Finding the climbing equipment of that era not up to his
standards, he attempted to create superior gear. He
bought a used coal-fired forge and taught himself how to
blacksmith. The resulting equipment was hugely
respected in the climbing community. But the products that
would eventually make him rich were not pitons
and carabiners, but rather fleece jackets, board shorts and plaid
shirts. No longer just designing technical gear
for his pals, and hoping to fund his own climbing expeditions,
by the mid-1980s Chouinard found himself
helming a red-hot, rapidly expanding, internationally known
fashion brand.
He wasn't quite sure what to make of this unexpected role. "I
wanted to distance myself as far as possible from
those pasty-faced corpses in suits I saw in airline-magazine
ads," he writes in his 2005 autobiography, "Let My
People Go Surfing." "If I had to be a businessman, I was going
to do it on my own terms."
I've never seen a company tell customers to buy less of its
product. It's a fascinating initiative.
Those terms include adhering to what he calls his "MBA"
management approach—"management by absence"—
which sees him far away from Ventura, sometimes for months at
a time, "wear testing" the company's outdoor
gear while climbing or fishing. When he does clock in at the
office, his daily uniform is jeans and a Patagonia
button-front shirt. He has no computer at his desk, just an Etch
A Sketch on which co-workers can leave
friendly messages. When he greets employees in the hallways,
he inquires about their recent climbing feats and
invites them to surf at his house the next time the waves are
rolling.
There are economists who insist that companies must focus only
on the cold, hard bottom line—and that
capitalism itself depends in part on this unwavering focus. Back
in 1970, Milton Friedman wrote a legendary
essay for the "New York Times Magazine" titled "The Social
Responsibility of Business Is to Increase Its
Profits." Friedman pooh-poohed companies' charitable efforts,
arguing that it's the sole duty of a business
executive to maximize profits for shareholders. If executives
wish to do good, they are free to plow their salaries
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into charitable works. The company itself has no special
competence in good-deed doing and should stay well
clear of the game.
Few would fault a business for funneling a portion of its profits
to an in-house charitable arm. But corporate
social responsibility (or CSR, as it's known in business-school
parlance) often gets treated as a cute sideshow.
It's a minor penance, used by giant companies to shape their
public images, or to salve the consciences of their
higher-ups. Traditional CSR results in many admirable
endeavors. For example, the Ronald McDonald House
Charities provide aid to the families of ill and injured
children—a worthy project that also has zero to do with
the McDonald's business model.
Increasingly, CSR scholars argue that more profound results
might be attained if companies like McDonald's
considered social responsibilities related to their core
operations. McDonald's could, for instance, examine the
societal impact of its supply chain, its employment policies, its
carbon footprint and so forth. And McDonald's
has made efforts along these lines of late. But it has not yet
engaged in anything akin to the radical self-
flagellation that goes on daily at Patagonia.
Yes, Patagonia takes part in some traditional corporate social
responsibility—since 1985 it has given 1 percent of
revenue (sales, not profit), totaling $41.5 million, to grassroots
environmental organizations. Over the years it
has convinced 1,400 other companies worldwide to join this
"1% for the Planet" initiative. But Chouinard argues
this is merely a tithe—he refers to it as an Earth tax. A more
systemic transformation of the company began in
1991, after a sudden slowdown following years of
overambitious growth threw Patagonia into turmoil.
Credit was cut off—Chouinard says his accountant at one point
introduced him to a mafia guy who offered to
lend at 28 percent interest. The company was forced to make its
first ever layoffs, of 120 employees, one-fifth of
its workforce. Chouinard began to wonder whether he should
stay in the game at all. He went to famed
consultant Dr. Michael Kami, who recommended that Chouinard
sell Patagonia for $100 million and just use
the proceeds to do environmental good. "I seriously considered
it," says Chouinard. "But I'd made the same
mistakes every other company makes. I decided the best thing I
could do was to get profitable again, live a more
examined corporate life and influence other companies to do the
same."
Chouinard got his books in order. He vowed to run the company
debt-free, which he now does. Then he looked
at everything Patagonia made, shipped or processed, and
resolved to do it all more responsibly. He changed
materials, switching in 1996 from conventional to organic
cotton—despite the fact that it initially tripled his
supply costs—because it was less harmful to the environment.
He created fleece jackets made entirely from
recycled soda bottles. He vowed to create products durable
enough and timeless enough that people could
replace them less often, reducing waste. He put "The Footprint
Chronicles" up on Patagonia's website,
exhaustively cataloging the environmental damage done by his
own company. He now takes responsibility for
every item Patagonia has ever made—promising either to
replace it if the customer is dissatisfied, repair it (for a
reasonable fee), help resell it (Patagonia facilitates exchanges
of used clothes on its website), or recycle it when
at last it's no longer wearable.
To be sure, these initiatives also serve as effective branding.
Part of Patagonia's appeal stems from its
commitment to the environment. Consider the clever reverse
psychology of its recent advertising. Last
November, on Black Friday—the unofficial American holiday of
consumer gluttony—Patagonia took out a full-
page ad in the "New York Times" with the bold-face headline
"Don't Buy This Jacket." Below a picture of the
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fleece jacket in question, the ad copy listed, in grueling detail,
how much water was wasted and carbon emitted
in the course of its construction.
"I've never seen a company tell customers to buy less of its
product," marvels Harvard Business School
professor Forest Reinhardt. "It's a fascinating initiative. Yvon
has the confidence to pull it off." In fact,
Chouinard says the ad boosted Patagonia sales—though he
argues it didn't drive more overall consumption, but
rather stole existing customers from his competitors.
Reinhardt co-authored a Harvard Business School case study of
Patagonia in 2010. Like many of the other
business-school professors I spoke with about Patagonia, he
seemed genuinely impressed by Chouinard. Which
is logical: In one sense, Patagonia's current success stems from
classic business-school principles. The brand
has maximized what B-school types refer to as WTP, or
willingness to pay. Patagonia's perceived quality and do-
gooder aura convince customers that its goods are worth a
higher price.
It's not just the marketplace Chouinard is affecting—it's the
workplace. His flex-time policies allow workers to
come and go whenever they want—say, when waves are high at
the nearby surf point—as long as deadlines are
met. There's a yoga room available any time of day (I walked in
on the head menswear designer meditating
there at around 11 a.m. on a Tuesday.) At the prodding of
Chouinard's wife, Malinda, Patagonia was one of the
first companies in California to provide on-site, subsidized day
care. Even the chief bean counter, COO and CFO
Rose Marcario, seems spiritually fulfilled. In previous jobs at
other companies, she says, "I might have looked
for ways to defer taxes in the Cayman Islands. Here, we are
proud to pay our fair share of taxes. It's a different
philosophy. My life is more integrated with my work because
I'm trying to stay true to the same values in both."
Skeptics argue that this kind of feel-good stuff could never
work at a giant, publicly listed corporation, or at one
that doesn't charge eye-popping prices for its gourmet gear. But
when Chouinard counseled Walmart on
sustainability, the retail behemoth found it actually saved
money through environmental initiatives, like
reducing its packaging and water consumption. "We are very
focused on lowering prices for our customers,"
says Fox. "There were some investments we needed to make at
the beginning, but the returns were quick
enough that it came back in a reasonable time frame."
Similarly, Levi Strauss—with more than 10 times the annual
revenue of Patagonia—has embraced Chouinard's
efforts to set data-driven benchmarks for improving apparel
makers' environmental practices. Levi's has spent
the past 18 months redesigning processes to save 45 million
gallons of water, along with the energy that would
have heated that water. This is not simply altruism. While the
company won't share specific numbers, "the
business savings costs are real," says Michael Kobori, Levi's
V.P. of social and environmental sustainability.
There's genuine shareholder value at the heart of many of
Chouinard's ideals, which could carry over to all types
of enterprise. A more fulfilling, happier workplace attracts and
retains better workers, who in turn design
superior products and develop smarter strategies. Thinking now
about environmental impact helps companies
get in front of inevitable future regulation—offering a jump on
unprepared competitors. And it's just good brand
management: Customers are increasingly aware of
organizations' social ethics.
Many critics argue that big business has lost its moral compass
over the decades, but new legislation in seven
states, including California, offers a different model.
Registering as a "benefit corporation" lets a firm declare—
in its articles of incorporation—that the fiduciary duty of its
executives includes "consideration of the interests
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a%27s+most#printMode
Copyright 2012 Dow Jones & Company, Inc. All Rights
Reserved
This copy is for your personal, non-commercial use only.
Distribution and use of this material are governed by our
Subscriber Agreement and
by copyright law. For non-personal use or to order multiple
copies, please contact Dow Jones Reprints at 1-800-843-0008 or
visit
www.djreprints.com
of workers, community and the environment," and not just the
bottom line.
Chouinard marched into state offices on the morning of January
3, 2012, to make Patagonia the very first
company to register as a benefit corporation in California. It
remains the most prominent company nationwide
to have registered thus far. For Chouinard, the value of this is
less about the present than the future. He can do
whatever he wants at Patagonia right now, with no threat of
shareholders revolting if he sacrifices a bit of profit
in the name of menschy communitarianism. He owns the place
in full, for as long as he's alive. But he's cagey
about succession, and it's clear what he fears: He never wants
Patagonia to go public, or to lever itself up in
search of rapid growth, as it mistakenly did before. He's
convinced that becoming a benefit corporation will help
prevent that from ever happening.
Though he left New England when he was only seven,
Chouinard still retains the unimpressed, dismissive mien
of a flinty Mainer. But after hanging out with him for a while,
you begin to glimpse what stokes his fires. It's not
being indoors—you get the sense that he's not entirely
comfortable under a roof. It's not technology—he neither
has a cell phone nor uses a computer. And it's not luxury—he
drives a beat-up Subaru wagon with 95,000 miles
on it.
Among the few times I saw him truly light up: When he spotted
some ring-necked doves on the shore near his
house; when he showed me a new pair of Patagonia aluminum
crampons that he'd had a hand in designing;
when he described the best wave he'd ever caught, which
happened at age 50, off the South Pacific island of
Moorea. He still occasionally blacksmiths in a little tin shed on
the Patagonia campus, and he showed me his
latest project, a metal mussel knife that he's been beating into
perfect shape—sharp at the blade to pry open the
shells, blunt at the handle to knock away the barnacles. He was
dissatisfied with all extant mussel knives. So he
made a better one himself. He looks forward to testing it in the
shoals.
http://online.wsj.com/public/page/subscriber_agreement.html
http://www.djreprints.com/
5/10/12 12:16 PMPatagonia's Founder is America's Most
Unlikely Business Guru - WSJ.com
Page 7 of
7http://online.wsj.com/article/SB1000142405270230351340457
735222…ml?KEYWORDS=Patagonia%27s+founder+is+Americ
a%27s+most#printMode
MGM 360- Business and Society
Exam 2—Fall 2015
Instructions:
This take home exam is due at 12:00 PM (NOON) on November
9th in the DropBox. All
exams must be submitted in a MSWord file, single-spaced, 12-
pt Times New Roman
font. Use the header feature in MSWord to put your name in the
top-right hand corner.
Bring a hardcopy (printed out) exam to class on November 9th.
Writing: As with the previous exam, these questions require
detailed response (with the
exception of the 5 point questions not needing a lot of detail)
that require you to
synthesize information and present it in an organized manner.
Therefore, each response
should have a thesis statement, an introduction, development of
the points you would like
to make, a summary and a conclusion. You will be graded on
your writing, including
organization, coherence and quality of your responses.
Remember:
Use your own words…do not copy straight from the book or
straight from the internet.
Do not wait until the last minute to begin the exam.
Use paragraphs to organize each response. You cannot use just
one paragraph for a
response to each question.
Proof read, spell check (remember spell check does not catch
words used incorrectly).
A visit to the university Writing Center can help.
Finally, use the exam format posted in this section. You will
lose points for not following
the format.
Chapter 5
(5 points) What is corporate social responsibility?
(10 points) Discuss the three elements of social responsibility.
(10 points) When discussing CSR, there’s always the discussion
of the cost associated
(financial performance) with it. What is the relationship
between financial performance
and CSR?
Chapter 6
(25 points) Read the article (WSJ-posted) Patagonia’s Founder
is America’s Most
Unlikely Business Guru. Discuss how Chouinard’s has
implemented CSR. Cover all
aspects of CSR you see used in Chapter 6 and apply these
principles to the Chouinard
philosophies and Patagoina practices.
Chapter 7
(25 points) What are the factors that influence managerial
ethics? Why is the example of
company leaders considered perhaps the strongest influence on
integrity in a corporate
culture?
Chapter 8
(15 points) Explain deontological ethics and then apply how this
concept applied to the
David Geffen case.
(10 points) Discuss some practical suggestions for making
ethical decisions. What
strategy does Lockheed Martin use?
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Assignment FourRead chapters 8, 9, & 10 then complete the foll.docx

  • 1. Assignment Four Read chapters 8, 9, & 10 then complete the following: Chapter Eight Part one: Complete End of Chapter Questions 1, 6, & 8. Part two: Complete End of Chapter Exercise Part three: Skim through the timeline of U.S. immigration history (see below) and state whether you think the laws benefitted the U.S. workplace or reduced fear of American citizens or both? Why? Chapter Nine Part one: Complete End of Chapter Questions 2, 6 (be specific in your answer) & 9. Part two: Complete End of Exercise Part three: In a paragraph, explain: How can managers utilize the information provided in this chapter to prevent discrimination against religion which is a protected class under the 1964 Civil Rights Act? Chapter Ten Part one: Complete End of Chapter Questions 1, 3, 4, & 6. Part two: In a paragraph, explain: How a hiring manager could violate the rights of the disabled by simply not asking what question(s) at the interview or prior to be hired. Timeline Key Dates and Landmarks in United States Immigration History 1789
  • 2. The Constitution of the United States of America takes effect, succeeding the Articles of Confederation that had governed the union of states since the conclusion of the Revolutionary War (March 4, 1789). 1790 The Naturalization Act of 1790 establishes a uniform rule of naturalization and a two-year residency requirement for aliens who are "free white persons" of "good moral character" (March 26, 1790). 1798 Considered one of the Alien and Sedition Acts, the Naturalization Act of 1798 permits Federalist President John Adams to deport foreigners deemed to be dangerous and increases the residency requirements to 14 years to prevent immigrants, who predominantly voted for the Republican Party, from becoming citizens (June 25, 1798). 1802 The Jefferson Administration revises the Naturalization Act of 1798 by reducing the residency requirement from 14 to five years. 1808 Importation of slaves into the United States is officially banned, though it continues illegally long after the ban. 1819 Congress passes an act requiring shipmasters to deliver a manifest enumerating all aliens transported for immigration.
  • 3. The Secretary of State is required to report annually to Congress the number of immigrants admitted. 1821–1830 143,439 immigrants arrive 1831–1840 599,125 immigrants arrive 1840s Crop failures in Germany, social turbulence triggered by the rapid industrialization of European society, political unrest in Europe, and the Irish Potato Famine (1845–1851) lead to a new period of mass immigration to the United States. 1841–1850 1,713,251 immigrants arrive 1848 The Treaty of Guadalupe Hidalgo ends the Mexican-American War and extends citizenship to the approximately 80,000 Mexicans living in Texas, California, and the American Southwest. 1848 Gold is discovered in the American River, near Sacramento, California. 1849
  • 4. The California gold rush spurs immigration from China and extensive internal migration. 1850 For the first time, the United States Census surveys the "nativity" of citizens (born inside or outside the US). 1851–1860 2,598,214 immigrants arrive 1854 The Know-Nothings, a nativist political party seeking to increase restrictions on immigration, win significant victories in Congress, a sign of popular dissatisfaction with growing immigration from Catholic Ireland. Protestant Americans feared that growing Catholic immigration would place American society under control of the Pope. 1855 Castle Garden is established as New York's principal point of entry. 1861–1870 2,314,825 immigrants arrive 1861 Outbreak of the American Civil War (April 12, 1861). 1862
  • 5. The Homestead Act provides free plots of up to 160 acres of western land to settlers who agree to develop and live on it for at least five years, thereby spurring an influx of immigrants from overpopulated countries in Europe seeking land of their own. 1862 The "Anti-Coolie" Act discourages Chinese immigration to California and institutes special taxes on employers who hire Chinese workers. 1863 Riots against the draft in New York City involve many immigrants opposed to compulsory military service (July 13–16, 1863). 1863 The Central Pacific hires Chinese laborers and the Union Pacific hires Irish laborers to construct the first transcontinental railroad, which would stretch from San Francisco to Omaha, allowing continuous travel by rail from coast to coast. 1869 The First Transcontinental Railroad is completed when the Central Pacific and Union Pacific lines meet at Promontory Summit, Utah (May 10, 1869). 1870 The Naturalization Act of 1870 expands citizenship to both whites and African-Americans, though Asians are still excluded.
  • 6. 1870 The Fifteenth Amendment is ratified, granting voting rights to citizens, regardless of "race, color, or previous condition of servitude." 1870 Jacob Riis, who later pioneered photojournalism and authored How the Other Half Lives, emigrates from Denmark to the United States. 1871–1880 2,812,191 immigrants arrive 1881–1890 5,246,613 immigrants arrive 1881–1885 1 million Germans arrive in the peak of German immigration 1881–1920 2 million Eastern European Jews immigrate to the United States 1882 The Chinese Exclusion Act restricts all Chinese immigration to the United States for a period of ten years. 1882 The Immigration Act of 1882 levies a tax of 50 cents on all
  • 7. immigrants landing at US ports and makes several categories of immigrants ineligible for citizenship, including "lunatics" and people likely to become public charges. 1885 The Alien Contract Labor Law prohibits any company or individual from bringing foreigners into the United States under contract to perform labor. The only exceptions are those immigrants brought to perform domestic service and skilled workmen needed to help establish a new trade or industry in the US. 1886 The Statue of Liberty is dedicated in New York Harbor. 1886 Emma Goldman, Lithuanian-born feminist, immigrates to the United States, where over the next 30 years she will become a prominent American anarchist. During the First World War, in 1917, she is deported to Russia for conspiring to obstruct the draft. 1889 Jane Addams and Ellen Gates Starr found Hull-House in Chicago. 1890 The demographic trends in immigration to the United States shift as immigration from Southern and Eastern Europe substantially increases, while the relative proportion of immigration from Northern and Western Europe begins to
  • 8. decrease. 1891–1900 3,687,564 immigrants arrive. 1891 Congress makes "persons suffering from a loathsome or a dangerous contagious disease," those convicted of a "misdemeanor involving moral turpitude," and polygamists ineligible for immigration. Congress also establishes the Office of the Superintendent of Immigration within the Treasury Department. 1892 The Geary Act extends the Chinese Exclusion Act for ten more years, and adds the requirement that all Chinese residents carry permits, as well as excluding them from serving as witnesses in court and from bail in habeus corpus proceedings. 1892 Ellis Island, the location at which more than 16 million immigrants would be processed, opens in New York City. 1901–1910 8,795,386 immigrants arrive 1901 After President William McKinley is shot by a Polish anarchist (September 6, 1901) and dies a week later (September 14, 1901), Congress enacts the Anarchist Exclusion Act, which
  • 9. prohibits the entry into the US of people judged to be anarchists and political extremists. 1902 The Chinese Exclusion Act is again renewed, with no ending date. 1906 The Naturalization Act of 1906 standardizes naturalization procedures, makes some knowledge of the English language a requirement for citizenship, and establishes the Bureau of Immigration and Naturalization in the Commerce Department to oversee national immigration policy. 1907 The Expatriation Act declares that an American woman who marries a foreign national loses her citizenship. 1907 Under an informal "Gentlemen's Agreement," the United States agrees not to restrict Japanese immigration in exchange for Japan's promise to voluntarily restrict Japanese emigration to the United States by not issuing passports to Japanese laborers. In return, the US promises to crack down on discrimination against Japanese-Americans, most of whom live in California. 1907 The Dillingham Commission is established by Congress to investigate the effects of immigration on the United States.
  • 10. 1911–1920 2 million Italians arrive in the peak of Italian immigration 1911–1920 5,735,811 immigrants arrive 1911 The Dillingham Commission, established in 1907, publishes a 42-volume report warning that the "new" immigration from Southern and Eastern Europe threatens to subvert American society. The Dillingham Commission's recommendations lay the foundation for the Quota Acts of the 1920s. 1913 California's Alien Land Law prohibits "aliens ineligible for citizenship" (Chinese and Japanese) from owning property in the state, providing a model for similar anti-Asian laws in other states. 1917 Congress enacts a literacy requirement for immigrants by overriding President Woodrow Wilson's veto. The law requires immigrants to be able to read 40 words in some language and bans immigration from Asia, except for Japan and the Philippines. 1917 The US enters the First World War. 1917
  • 11. The Immigration Act of 1917 restricts immigration from Asia by creating an "Asiatic Barred Zone." 1917 The Jones-Shafroth Act grants US citizenship to Puerto Ricans, provided that they can be recruited by the US military. 1919 The First Red Scare leads to an outbreak of fear and violence against people deemed to be political radicals and foreigners considered to be susceptible to communist propaganda and more likely to be involved in the Bolshevik Revolution. 1921–1930 4,107,209 immigrants arrive. 1921 The Emergency Quota Act restricts immigration from a given country to 3% of the number of people from that country living in the US in 1910. 1922 The Cable Act partially repeals the Expatriation Act, but declares that an American woman who marries an Asian still loses her citizenship. 1923 In the landmark case of United States v. Bhaghat Singh Thind, the Supreme Court rules that Indians from the Asian subcontinent cannot become US citizens.
  • 12. 1924 The Immigration Act of 1924 limits annual European immigration to 2% of the number of people from that country living in the United States in 1890. The Act greatly reduces immigration from Southern and Eastern European nationalities that had only small populations in the US in 1890. 1924 The Oriental Exclusion Act prohibits most immigration from Asia, including foreign-born wives and the children of American citizens of Chinese ancestry. 1924 The Border Patrol is created to combat smuggling and illegal immigration. 1929 The National Origins Formula institutes a quota that caps national immigration at 150,000 and completely bars Asian immigration, though immigration from the Western Hemisphere is still permitted. 1931–1940 532,431 immigrants arrive. 1933 To escape persecution by the Nazis, Albert Einstein, the greatest theoretical physicist of the century, immigrates to the United States from Germany.
  • 13. 1934 The Tydings-McDuffe Act grants the Philippines independence from the United States on July 4, 1946, but strips Filipinos of US citizenship and severely restricts Filipino immigration to the United States. 1940 The Alien Registration Act requires the registration and fingerprinting of all aliens in the United States over the age of 14. Sources Calavita, Kitty. US Immigration Law and the Control of Labor: 1820-1924. London, Orlando: Academic Press, 1984. Digital History: Ethnic Voices. LeMay, Michael and Robert Barkan Elliott, eds., US Immigration and Naturalization Laws and Issues: A Documentary History. Westport, Conn.: Greenwood Press, 1999. Smith, Marian L. Overview of INS History to 1998. 5/10/12 12:16 PMPatagonia's Founder is America's Most Unlikely Business Guru - WSJ.com Page 1 of 7http://online.wsj.com/article/SB1000142405270230351340457 735222…ml?KEYWORDS=Patagonia%27s+founder+is+Americ a%27s+most#printMode See a sample reprint in PDF format. Order a reprint of this
  • 14. article now Photograph by Tierney Gearon BOARD MEETING Yvon Chouinard (seated), Patagonia's founder, at his home in Ventura, California. When the waves are rolling, his staff goes surfing, thanks to the company's flex-time policy. By SETH STEVENSON A couple of years ago, Yvon Chouinard— founder of the outdoor- clothing brand Patagonia— gave a talk at a sustainable- fisheries conference in Vancouver. He'd been invited to speak in recognition of Patagonia's longtime commitment to environmental issues and its reputation as a company that manages to churn out profit while minimizing ecological impact. Chouinard delivered his spiel, but he came
  • 15. away frustrated by the surprising ignorance of his audience. "They didn't know what they were doing," he says Dow Jones Reprints: This copy is for your personal, non- commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visit www.djreprints.com WSJ. MAGAZINE Updated April 26, 2012, 8:23 p.m. ET Patagonia's Founder Is America's Most Unlikely Business Guru For years, Yvon Chouinard kept his eco-conscious, employee- friendly practices largely to himself. Now megacorporations like Walmart, Levi Straus and Nike are following his lead. http://online.wsj.com/public/resources/documents/Reprint_Samp les.pdf javascript:CopyrightPopUp(); http://online.wsj.com/search/term.html?KEYWORDS=SETH+S TEVENSON&bylinesearch=true http://www.djreprints.com/ 5/10/12 12:16 PMPatagonia's Founder is America's Most Unlikely Business Guru - WSJ.com Page 2 of 7http://online.wsj.com/article/SB1000142405270230351340457 735222…ml?KEYWORDS=Patagonia%27s+founder+is+Americ a%27s+most#printMode Photograph by Tierney Gearon
  • 16. Chouinard's blacksmith shop, where he has forged climbing equipment for 30 years. of the seafood merchants. "They had no idea about toxins, about incidental catch. Their customers are all going to want to know this stuff soon. Restaurants will want to know." So, despite having zero background in the food business, Chouinard decided to launch his own salmon fishery. Patagonia Provisions, which debuted at the beginning of April, sells packets of salmon jerky ($12.50 for two ounces) next to rain jackets, hiking pants and organic cotton shirts. The salmon is caught in British Columbia's Skeena River, using traditional equipment that the company describes as "First Nations fish wheels and dip nets." Chouinard has so far poured $1.3 million into this curious experiment. He isn't sure when he'll make it back. "I can't help myself," he says. "I just want to show the fishing industry how it can be done." The idealism, ambition, self-assurance and total hubris at the heart of this salmon escapade are all hallmarks of the Chouinard executive style. His approach to leading a company is perhaps best understood as a sort of performance art—less about the bottom line than about providing a road map for future entrepreneurs. "I never even wanted to be in business," he says. "But I hang onto Patagonia because it's my resource to do something good. It's a way to demonstrate that corporations can lead examined lives." That mission is already well under way. Chouinard's new book, "The Responsible Company," published this month, offers detailed checklists for making money without inflicting undue societal harm. Even megacorporations are paying attention to him these days. Chouinard has partnered with
  • 17. Walmart—an odd couple if there ever was one, in terms of size (Walmart's revenue exceeds Patagonia's 800- fold) and customer base—to advise the retail giant on reducing packaging and water use in its supply chains. Together the two companies teamed up to create the Sustainable Apparel Coalition, inviting other major brands, such as Levi Strauss, Nike, Gap and Adidas to join them in crafting clear, quantifiable standards for environmentally responsible clothing production. "I adore Yvon," says Mary Fox, an executive in charge of Walmart's global sourcing. "When we went around together to get other companies on board, we code-named ourselves David and Goliath. Because in the realm of sustainability, we were David. Patagonia was Goliath." At 73, Chouinard is a short, thick fireplug of a man who still looks barely 60. He is fit and tan from surfing, which he does any day there are half-decent waves. He prowls Patagonia's headquarters, in Ventura, California, checking in on new designs (he showed me a sturdy down jacket that felt about as heavy as a paperclip and then said he'd kill me before telling me how they make it) and tinkering with a lightweight camp stove of his own invention at his desk. If he so chose, he could be easing himself into a delightfully active retirement: He and his wife are sole owners of Patagonia, a privately held company that brought in $414 million in sales last year and is projecting a 30 percent increase in sales this year. With little left to prove, Chouinard could sell the company and happily spend his time catching breakers (here or at his other home up the coast, in Hollister Ranch), fly fishing (near his house in Jackson, Wyoming, using flies he ties himself), and mentoring and donating to his favored environmental causes. But Patagonia's forefather isn't quite done with Patagonia yet.
  • 18. The evolution of Patagonia into a clothing company began in the 1970s, when Chouinard—then a world-class mountain climber and a designer of mountaineering equipment—started importing durable rugby shirts and http://online.wsj.com/article/SB10001424052702303513404577 352221465986612.html?KEYWORDS=Patagonia%27s+founder +is+America%27s+most# 5/10/12 12:16 PMPatagonia's Founder is America's Most Unlikely Business Guru - WSJ.com Page 3 of 7http://online.wsj.com/article/SB1000142405270230351340457 735222…ml?KEYWORDS=Patagonia%27s+founder+is+Americ a%27s+most#printMode corduroy knickers for his climber pals to wear. Soon enough, Patagonia was designing its own line of clothes. Soon after that, sales of the clothes far outstripped sales of the climbing gear. This is how Yvon Chouinard became an accidental apparel mogul. This truly hit home when fashion models in New York City started wearing Patagonia fleece vests. He had no idea why, and didn't really care. But he realized his life had changed. At his weathered beachside home in a gated enclave a few miles north of Patagonia's headquarters, Chouinard puts out a plateful of his salmon, smoked and sliced. "This isn't the farmed stuff," he says through bites. "Fresh caught." We nibble on almonds he roasted himself, sip from a chilled bottle of chenin blanc he's uncorked and talk about his improbable journey. Chouinard was born in Maine, in far less posh environs, to
  • 19. French-Canadian parents who transplanted the family to Burbank, California, when he was seven. He didn't learn English until he was eight and says he spent much of his childhood in and around the Los Angeles River, wading for crawdads or hunting rabbits with a bow and arrow. By high school, he'd discovered rock climbing, becoming a self-described "dirtbag" who loved to tackle risky ascents. Finding the climbing equipment of that era not up to his standards, he attempted to create superior gear. He bought a used coal-fired forge and taught himself how to blacksmith. The resulting equipment was hugely respected in the climbing community. But the products that would eventually make him rich were not pitons and carabiners, but rather fleece jackets, board shorts and plaid shirts. No longer just designing technical gear for his pals, and hoping to fund his own climbing expeditions, by the mid-1980s Chouinard found himself helming a red-hot, rapidly expanding, internationally known fashion brand. He wasn't quite sure what to make of this unexpected role. "I wanted to distance myself as far as possible from those pasty-faced corpses in suits I saw in airline-magazine ads," he writes in his 2005 autobiography, "Let My People Go Surfing." "If I had to be a businessman, I was going to do it on my own terms." I've never seen a company tell customers to buy less of its product. It's a fascinating initiative. Those terms include adhering to what he calls his "MBA" management approach—"management by absence"— which sees him far away from Ventura, sometimes for months at a time, "wear testing" the company's outdoor
  • 20. gear while climbing or fishing. When he does clock in at the office, his daily uniform is jeans and a Patagonia button-front shirt. He has no computer at his desk, just an Etch A Sketch on which co-workers can leave friendly messages. When he greets employees in the hallways, he inquires about their recent climbing feats and invites them to surf at his house the next time the waves are rolling. There are economists who insist that companies must focus only on the cold, hard bottom line—and that capitalism itself depends in part on this unwavering focus. Back in 1970, Milton Friedman wrote a legendary essay for the "New York Times Magazine" titled "The Social Responsibility of Business Is to Increase Its Profits." Friedman pooh-poohed companies' charitable efforts, arguing that it's the sole duty of a business executive to maximize profits for shareholders. If executives wish to do good, they are free to plow their salaries 5/10/12 12:16 PMPatagonia's Founder is America's Most Unlikely Business Guru - WSJ.com Page 4 of 7http://online.wsj.com/article/SB1000142405270230351340457 735222…ml?KEYWORDS=Patagonia%27s+founder+is+Americ a%27s+most#printMode into charitable works. The company itself has no special competence in good-deed doing and should stay well clear of the game. Few would fault a business for funneling a portion of its profits to an in-house charitable arm. But corporate
  • 21. social responsibility (or CSR, as it's known in business-school parlance) often gets treated as a cute sideshow. It's a minor penance, used by giant companies to shape their public images, or to salve the consciences of their higher-ups. Traditional CSR results in many admirable endeavors. For example, the Ronald McDonald House Charities provide aid to the families of ill and injured children—a worthy project that also has zero to do with the McDonald's business model. Increasingly, CSR scholars argue that more profound results might be attained if companies like McDonald's considered social responsibilities related to their core operations. McDonald's could, for instance, examine the societal impact of its supply chain, its employment policies, its carbon footprint and so forth. And McDonald's has made efforts along these lines of late. But it has not yet engaged in anything akin to the radical self- flagellation that goes on daily at Patagonia. Yes, Patagonia takes part in some traditional corporate social responsibility—since 1985 it has given 1 percent of revenue (sales, not profit), totaling $41.5 million, to grassroots environmental organizations. Over the years it has convinced 1,400 other companies worldwide to join this "1% for the Planet" initiative. But Chouinard argues this is merely a tithe—he refers to it as an Earth tax. A more systemic transformation of the company began in 1991, after a sudden slowdown following years of overambitious growth threw Patagonia into turmoil. Credit was cut off—Chouinard says his accountant at one point introduced him to a mafia guy who offered to lend at 28 percent interest. The company was forced to make its first ever layoffs, of 120 employees, one-fifth of its workforce. Chouinard began to wonder whether he should
  • 22. stay in the game at all. He went to famed consultant Dr. Michael Kami, who recommended that Chouinard sell Patagonia for $100 million and just use the proceeds to do environmental good. "I seriously considered it," says Chouinard. "But I'd made the same mistakes every other company makes. I decided the best thing I could do was to get profitable again, live a more examined corporate life and influence other companies to do the same." Chouinard got his books in order. He vowed to run the company debt-free, which he now does. Then he looked at everything Patagonia made, shipped or processed, and resolved to do it all more responsibly. He changed materials, switching in 1996 from conventional to organic cotton—despite the fact that it initially tripled his supply costs—because it was less harmful to the environment. He created fleece jackets made entirely from recycled soda bottles. He vowed to create products durable enough and timeless enough that people could replace them less often, reducing waste. He put "The Footprint Chronicles" up on Patagonia's website, exhaustively cataloging the environmental damage done by his own company. He now takes responsibility for every item Patagonia has ever made—promising either to replace it if the customer is dissatisfied, repair it (for a reasonable fee), help resell it (Patagonia facilitates exchanges of used clothes on its website), or recycle it when at last it's no longer wearable. To be sure, these initiatives also serve as effective branding. Part of Patagonia's appeal stems from its commitment to the environment. Consider the clever reverse psychology of its recent advertising. Last November, on Black Friday—the unofficial American holiday of consumer gluttony—Patagonia took out a full-
  • 23. page ad in the "New York Times" with the bold-face headline "Don't Buy This Jacket." Below a picture of the 5/10/12 12:16 PMPatagonia's Founder is America's Most Unlikely Business Guru - WSJ.com Page 5 of 7http://online.wsj.com/article/SB1000142405270230351340457 735222…ml?KEYWORDS=Patagonia%27s+founder+is+Americ a%27s+most#printMode fleece jacket in question, the ad copy listed, in grueling detail, how much water was wasted and carbon emitted in the course of its construction. "I've never seen a company tell customers to buy less of its product," marvels Harvard Business School professor Forest Reinhardt. "It's a fascinating initiative. Yvon has the confidence to pull it off." In fact, Chouinard says the ad boosted Patagonia sales—though he argues it didn't drive more overall consumption, but rather stole existing customers from his competitors. Reinhardt co-authored a Harvard Business School case study of Patagonia in 2010. Like many of the other business-school professors I spoke with about Patagonia, he seemed genuinely impressed by Chouinard. Which is logical: In one sense, Patagonia's current success stems from classic business-school principles. The brand has maximized what B-school types refer to as WTP, or willingness to pay. Patagonia's perceived quality and do- gooder aura convince customers that its goods are worth a higher price.
  • 24. It's not just the marketplace Chouinard is affecting—it's the workplace. His flex-time policies allow workers to come and go whenever they want—say, when waves are high at the nearby surf point—as long as deadlines are met. There's a yoga room available any time of day (I walked in on the head menswear designer meditating there at around 11 a.m. on a Tuesday.) At the prodding of Chouinard's wife, Malinda, Patagonia was one of the first companies in California to provide on-site, subsidized day care. Even the chief bean counter, COO and CFO Rose Marcario, seems spiritually fulfilled. In previous jobs at other companies, she says, "I might have looked for ways to defer taxes in the Cayman Islands. Here, we are proud to pay our fair share of taxes. It's a different philosophy. My life is more integrated with my work because I'm trying to stay true to the same values in both." Skeptics argue that this kind of feel-good stuff could never work at a giant, publicly listed corporation, or at one that doesn't charge eye-popping prices for its gourmet gear. But when Chouinard counseled Walmart on sustainability, the retail behemoth found it actually saved money through environmental initiatives, like reducing its packaging and water consumption. "We are very focused on lowering prices for our customers," says Fox. "There were some investments we needed to make at the beginning, but the returns were quick enough that it came back in a reasonable time frame." Similarly, Levi Strauss—with more than 10 times the annual revenue of Patagonia—has embraced Chouinard's efforts to set data-driven benchmarks for improving apparel makers' environmental practices. Levi's has spent the past 18 months redesigning processes to save 45 million gallons of water, along with the energy that would have heated that water. This is not simply altruism. While the
  • 25. company won't share specific numbers, "the business savings costs are real," says Michael Kobori, Levi's V.P. of social and environmental sustainability. There's genuine shareholder value at the heart of many of Chouinard's ideals, which could carry over to all types of enterprise. A more fulfilling, happier workplace attracts and retains better workers, who in turn design superior products and develop smarter strategies. Thinking now about environmental impact helps companies get in front of inevitable future regulation—offering a jump on unprepared competitors. And it's just good brand management: Customers are increasingly aware of organizations' social ethics. Many critics argue that big business has lost its moral compass over the decades, but new legislation in seven states, including California, offers a different model. Registering as a "benefit corporation" lets a firm declare— in its articles of incorporation—that the fiduciary duty of its executives includes "consideration of the interests 5/10/12 12:16 PMPatagonia's Founder is America's Most Unlikely Business Guru - WSJ.com Page 6 of 7http://online.wsj.com/article/SB1000142405270230351340457 735222…ml?KEYWORDS=Patagonia%27s+founder+is+Americ a%27s+most#printMode Copyright 2012 Dow Jones & Company, Inc. All Rights Reserved This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our
  • 26. Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com of workers, community and the environment," and not just the bottom line. Chouinard marched into state offices on the morning of January 3, 2012, to make Patagonia the very first company to register as a benefit corporation in California. It remains the most prominent company nationwide to have registered thus far. For Chouinard, the value of this is less about the present than the future. He can do whatever he wants at Patagonia right now, with no threat of shareholders revolting if he sacrifices a bit of profit in the name of menschy communitarianism. He owns the place in full, for as long as he's alive. But he's cagey about succession, and it's clear what he fears: He never wants Patagonia to go public, or to lever itself up in search of rapid growth, as it mistakenly did before. He's convinced that becoming a benefit corporation will help prevent that from ever happening. Though he left New England when he was only seven, Chouinard still retains the unimpressed, dismissive mien of a flinty Mainer. But after hanging out with him for a while, you begin to glimpse what stokes his fires. It's not being indoors—you get the sense that he's not entirely comfortable under a roof. It's not technology—he neither has a cell phone nor uses a computer. And it's not luxury—he drives a beat-up Subaru wagon with 95,000 miles on it.
  • 27. Among the few times I saw him truly light up: When he spotted some ring-necked doves on the shore near his house; when he showed me a new pair of Patagonia aluminum crampons that he'd had a hand in designing; when he described the best wave he'd ever caught, which happened at age 50, off the South Pacific island of Moorea. He still occasionally blacksmiths in a little tin shed on the Patagonia campus, and he showed me his latest project, a metal mussel knife that he's been beating into perfect shape—sharp at the blade to pry open the shells, blunt at the handle to knock away the barnacles. He was dissatisfied with all extant mussel knives. So he made a better one himself. He looks forward to testing it in the shoals. http://online.wsj.com/public/page/subscriber_agreement.html http://www.djreprints.com/ 5/10/12 12:16 PMPatagonia's Founder is America's Most Unlikely Business Guru - WSJ.com Page 7 of 7http://online.wsj.com/article/SB1000142405270230351340457 735222…ml?KEYWORDS=Patagonia%27s+founder+is+Americ a%27s+most#printMode MGM 360- Business and Society Exam 2—Fall 2015 Instructions: This take home exam is due at 12:00 PM (NOON) on November
  • 28. 9th in the DropBox. All exams must be submitted in a MSWord file, single-spaced, 12- pt Times New Roman font. Use the header feature in MSWord to put your name in the top-right hand corner. Bring a hardcopy (printed out) exam to class on November 9th. Writing: As with the previous exam, these questions require detailed response (with the exception of the 5 point questions not needing a lot of detail) that require you to synthesize information and present it in an organized manner. Therefore, each response should have a thesis statement, an introduction, development of the points you would like to make, a summary and a conclusion. You will be graded on your writing, including organization, coherence and quality of your responses. Remember: Use your own words…do not copy straight from the book or straight from the internet. Do not wait until the last minute to begin the exam. Use paragraphs to organize each response. You cannot use just one paragraph for a response to each question. Proof read, spell check (remember spell check does not catch words used incorrectly). A visit to the university Writing Center can help. Finally, use the exam format posted in this section. You will lose points for not following the format. Chapter 5
  • 29. (5 points) What is corporate social responsibility? (10 points) Discuss the three elements of social responsibility. (10 points) When discussing CSR, there’s always the discussion of the cost associated (financial performance) with it. What is the relationship between financial performance and CSR? Chapter 6 (25 points) Read the article (WSJ-posted) Patagonia’s Founder is America’s Most Unlikely Business Guru. Discuss how Chouinard’s has implemented CSR. Cover all aspects of CSR you see used in Chapter 6 and apply these principles to the Chouinard philosophies and Patagoina practices. Chapter 7 (25 points) What are the factors that influence managerial ethics? Why is the example of company leaders considered perhaps the strongest influence on integrity in a corporate culture? Chapter 8 (15 points) Explain deontological ethics and then apply how this concept applied to the David Geffen case. (10 points) Discuss some practical suggestions for making ethical decisions. What strategy does Lockheed Martin use?