Daniels Fund Ethics Initiative
University of New Mexico
http://danielsethics.mgt.unm.edu
Case 10: Lululemon: Encouraging a
Healthier Lifestyle
CASE NOTES FOR INSTRUCTORS
This case demonstrates the successes and struggles of a popular company. Lululemon is an athletic
apparel company intended for individuals with active lifestyles. The organization has deep roots in
the yoga community and is one of the few businesses to offer apparel for this specific market. Denis
“Chip” Wilson founded the company in 1998.
From the get-go, Lululemon had a strong mission that embraced a healthy and active lifestyle.
Inspired by author and philosopher Ayn Rand, Chip Wilson modeled Lululemon with the intent that
involves “elevating the world from mediocrity to greatness.” Stores are heavily engaged in
community involvement. The company has adopted seven core values that guide its decisions.
QUESTIONS AND DISCUSSION
1. How has Lululemon handled various ethical issues that it has faced over the last few years?
2. How has the ethical culture of Lululemon impacted its relationship with customers and
employees?
Lululemon has a strong employee culture that stresses inspiration. It seeks to inspire
employees to live healthy and strive for their goals, even paying for them to attend the self-
3. To avoid negative publicity and ethical challenges, what steps should Lululemon take to
improve its stakeholder relationships?
Students’ answers will vary. Some answers might be to increase oversight over quality