Monthly Archives: October 2014

The Downside of Being Charitable: Lululemon

Throughout our lessons in Comm101, I have learned about the positives of giving back to the community from a business’ point of view. Large companies can connect with the community by being ethical and fulfilling a value proposition of being a business that cares about the environment and social ethics, creating a positive reputation and marketing a desirable brand.  Yet, Lululemon may be feeling the downsides of being charitable. Lululemon has always been a brand that has promoted ideals about sustainability, leadership, education and community. Yet, by donating $750,000 over the next three years to the Dalai Lama Center for Peace and Education, some people are accusing the yoga brand of riding on the popularity of the Dalai for corporate gains.

Dalai Lama Cr. Asianews Italy

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One of Lululemon’s Ads Cr. Lululemon

I personally believe that Lululemon did not commit anything wrong – they are truly donating because they care. Ethically, businesses should donate portions of their revenue to charity as a way to give back to the consumers who support them. I am not surprised that numerous organizations are finally going eco-friendly and socially ethical; consumers want to support a brand that believes in the same morals that they do. By donating, Lululemon is actually taking a further step than just being ethical, but pro-active. Despite the accusations, I believe the majority of the public supports Lululemon. Lululemon has already created a strong brand of being pro-active, thus making me believe this charity pact is genuine. I believe it shows a benefit of creating an ethical brand as the general public, as do I, will assume Lululemon is once again trying to give back to the world community.

Lululemon Cr. Brantfordexpositor

The Northern Gateway Project – First Nations and Businesses

Businesses have numerous factors to understand and tackle in their business plans. We have learned in Comm 101 that businesses must understand PEST – political, economical, social and technological macro-economic factors that greatly affect the company. For the Enbridge Northern Gateway Project,  a major PEST factor are the first nations; the First Nations are external threats to the business plan of Enbridge due to their political factor.

Construction material for pipeline Credit: REUTERS/Julie Gordon

I believe the current situation with the First Nations is that they are an impediment for Enbridge. Currently, numerous First Nations tribes are attempting to stop the construction of the pipeline. Tribes such as Gitxaala are even going through the federal court to legally stop the project. I believe that Enbridge will need to tackle these external factors by evaluating the beliefs of these First Nations and the importance of this ancestral land. This may mean adapting to the needs of the First Nations and other political factors around them. Additionally, the first nations care about the environment, the environmental part of PESTLE, which Enbridge will need to tackle by finding a guaranteed way to deliver oil without a chance of spillage or environmental damage.

Douglas Channel Cr: Darryl Dyck

 

Overall, external factors from PESTLE can greatly affect companies, which I can see from the Enbridge and First Nations debacle. Tackling factors from PEST is definitely difficult as external factors require the companies to adapt to them, rather than having the problem being under the company’s full control.