To what extent does Lululemon’s response to the greenwashing scandal restore
its reputation as a sustainable company?
KEY CONCEPT: SUSTAINABILITY
IB Business and Management IA
Word Count: 1800
Area of Syllabus:
SWOT Analysis, Descriptive Statistics, Triple Bottom Line
1
, Table of Contents:
Introduction:..........................................................................................................4
Keyconcept:......................................................................................................5
ResearchandAnalysis:...........................................................................................6
Analyticaltools:......................................................................................................7
SWOTAnalysis:.................................................................................................7
DescriptiveStatistics:........................................................................................9
Socialresponsibility:...........................................................................................................10
Environmental:....................................................................................................................11
Financial:..............................................................................................................................11
Conclusion:...........................................................................................................12
Supportingdocuments:.........................................................................................13
2
, Introduction:
Lululemon Athletica Canada Inc is an athletic apparel company that gained
popularity starting in July 2007 when their stock went public, raising $327.6 million (Marcom
2024). It was founded by Chip Wilson in Vancouver, Canada in 1998.
The company is involved in a greenwashing scandal which occurred, due to them
claiming to be very environmentally friendly, initiating projects such as the ‘Be Planet project’
where they promised to start producing products with 75% sustainable materials (Supporting
document 2). Which would have reduced their carbon footprint, however their emissions were
still exponentially increasing which caused the public and government to be upset (Supporting
document 4).
With many pressure groups for environmental safety present in Canada,Lululemon
needs to be able to keep up with the demands required to be fulfilled for the environment
(Supporting document 5). Therefore, they have begun initiatives in order to keep up with the
demands for a sustainable production of clothing.
Nonetheless Lululemon claimed to understood the importance ofsustainability,
releasing official statements and publications aboutsustainability(Supporting document 2).
Adopting a sustainable approach to their production would allow them to appeal to their
customers. For example, just in Canada, searches for sustainable fashion have increased 37% in
2020 (Jessica 2023) which indicates that it is becoming a topic of interest for many when
purchasing clothing.
The key concept ofsustainabilityis essential incomprehending the research question,
“T
o what extent does Lululemon’s response to the greenwashingscandal restore its reputation
as a sustainable company?”.Sustainabilitycan allowfor a deeper understanding on how
exactly the scandal impacted Lululemon’s reputation as asustainablecompany.
3
its reputation as a sustainable company?
KEY CONCEPT: SUSTAINABILITY
IB Business and Management IA
Word Count: 1800
Area of Syllabus:
SWOT Analysis, Descriptive Statistics, Triple Bottom Line
1
, Table of Contents:
Introduction:..........................................................................................................4
Keyconcept:......................................................................................................5
ResearchandAnalysis:...........................................................................................6
Analyticaltools:......................................................................................................7
SWOTAnalysis:.................................................................................................7
DescriptiveStatistics:........................................................................................9
Socialresponsibility:...........................................................................................................10
Environmental:....................................................................................................................11
Financial:..............................................................................................................................11
Conclusion:...........................................................................................................12
Supportingdocuments:.........................................................................................13
2
, Introduction:
Lululemon Athletica Canada Inc is an athletic apparel company that gained
popularity starting in July 2007 when their stock went public, raising $327.6 million (Marcom
2024). It was founded by Chip Wilson in Vancouver, Canada in 1998.
The company is involved in a greenwashing scandal which occurred, due to them
claiming to be very environmentally friendly, initiating projects such as the ‘Be Planet project’
where they promised to start producing products with 75% sustainable materials (Supporting
document 2). Which would have reduced their carbon footprint, however their emissions were
still exponentially increasing which caused the public and government to be upset (Supporting
document 4).
With many pressure groups for environmental safety present in Canada,Lululemon
needs to be able to keep up with the demands required to be fulfilled for the environment
(Supporting document 5). Therefore, they have begun initiatives in order to keep up with the
demands for a sustainable production of clothing.
Nonetheless Lululemon claimed to understood the importance ofsustainability,
releasing official statements and publications aboutsustainability(Supporting document 2).
Adopting a sustainable approach to their production would allow them to appeal to their
customers. For example, just in Canada, searches for sustainable fashion have increased 37% in
2020 (Jessica 2023) which indicates that it is becoming a topic of interest for many when
purchasing clothing.
The key concept ofsustainabilityis essential incomprehending the research question,
“T
o what extent does Lululemon’s response to the greenwashingscandal restore its reputation
as a sustainable company?”.Sustainabilitycan allowfor a deeper understanding on how
exactly the scandal impacted Lululemon’s reputation as asustainablecompany.
3
