Corporate CEOs ignore the free-market dictum that the purpose of a firm is to maximize profits at their own peril as well as the peril of their employees and shareholders. One way to do make that error is to inject the firm into bitter partisan politics.
Doing so is terrible policy as it alienates customers who can simply find other firms to the meet their needs without the baggage of contributing to the profits of a company whose politics are found offensive.
The CEO of outdoor clothing giant Patagonia has apparently determined that attacking President Trump is a more important goal than building the firm she is responsible for leading. In so doing, she is derelict in her responsibilities as the top leader of the firm and should be replaced.
“The CEO of outdoor clothing giant Patagonia is burnishing her anti-Republican bona fides again, this time saying she intends to pledge her entire company to the “resistance” of President Donald Trump.
Patagonia CEO Rose Marcario recently attacked President Trump for his statements about rolling back President Obama’s unusually aggressive campaign of confiscating millions of acres of state lands and claiming them as ‘national monuments.’
“‘We have to fight like hell to keep every inch of public land,’ Marcario said in a May article at Huffpost. ‘I don’t have a lot of faith in politics and politicians right now.'”
That’s an interesting comment for her to make. Given her intention to use her firm as a vehicle for attacking the policies of President Trump and other conservatives, her shareholders should not have “a lot of faith” in her either.
“In an effort to prevent citizens from retaking possession of their state lands, one of her immediate actions will be to sue the Trump administration for its efforts to scale back Obama’s unprecedented land grab.
“‘A president does not have the authority to rescind a national monument,’ Marcario said in an April 26 statement after Trump announced his national monuments order. ‘An attempt to change the boundaries ignores the review process of cultural and historical characteristics and the public input.'”
Is this a personal lawsuit or one filed by Patagonia? Does she or her firm have standing to bring such a lawsuit? On what does she base her opinion of that President Trump is powerless to rescind Mr. Obama’s establishment of national monuments?
Yet these questions are secondary to the matter at hand. A CEO has decided that promoting leftist political beliefs and attacking the President of the U.S. and other conservatives is a more important use for investors’ funds than is pursuing the growth of her firm in order to generate wealth for those very shareholders.
They should demand her removal for her dereliction of her responsibilities as CEO.