Rethinking Ownership: Putting Purpose at the Center
Rethinking Ownership: Putting Purpose at the Center
An excerpt from our recent publication, in Harvard’s Social Impact Review.
When Yvon Chouinard, founder of Patagonia, transitioned the company to a purpose trust in 2022, it made headlines around the world and brought attention to an emerging form of corporate ownership. Patagonia, long hailed as a model for how to operate a company to the benefit of society and the planet, now exemplifies how to align a company’s ownership with its purpose.
Patagonia’s conversion is part of a broader movement to rethink the fundamentals of corporate ownership. A few years prior, Organically Grown Company, a large wholesale produce distributor out of Oregon, had done the same thing. In 2023, Clegg Auto, a retail service chain in Utah, did too. These very different companies faced the same problem: How could founders retire while perpetuating the intent of what they’ve built? How could they ensure the people who are creating the value, including workers and communities in which they operate, also share in the benefits? How could they grow without “selling out,” and enshrine their values for the long-term?”
Read the rest of our paper on the Harvard Advanced Leadership Initiative’s website.
