Business value

A business without value has no meaning. Companies exist to provide value to their stakeholders, including shareholders, employees, and also customers. Even companies that claim they’re not looking for profit need to generate value to stay alive. In 2022, Yvon Chouinard, the founder of Patagonia, Inc., a popular outdoor clothing company, decided to dedicate all the company’s profits to fighting climate change and protecting natural resources worldwide. At the time Chouinard took action, Patagonia’s valuation was approximately $3 billion, and the company generated profits of around $100 million a year. The founder started a letter he wrote to Patagonia’s employees by saying that the “earth is our only shareholder”. Most businesses don’t have the chance of doing what Patagonia did, as they can’t afford to stop sharing their profits with existing shareholders, investing in new product development, or improving their...