Whole Foods CFO: Aim for Purpose, Not Profits

By Jennifer Lloyd

In 1980, a ragtag group of Austin entrepreneurs began a new type of grocery store in the shell of a former night club. They called it Whole Foods Market.

Nearly 30 years later, Glenda Chamberlain, Whole Foods executive vice president and chief financial officer, is a polished leader of the nation’s largest natural and organic foods retailer. And she is teaching others why “conscious capitalism” is the best business paradigm.

“Why can’t business people be said to have aspirations related to the public good?” Chamberlain asks. “The truth is that there are many large corporations today that do have great purposes.”

Chamberlain, BBA ’73, spoke to a large audience of McCombs accounting students on Oct. 10 as part of the Lyceum Speakers Series. According to Chamberlain, Whole Foods is one example in which “big” business does not equate to “bad” business. She urged the next generation of business leaders to find a purpose beyond maximizing profits.

A Holistic View of Profit-Building

Chamberlain attributes Whole Foods success to the company’s holistic approach. In 2006, Whole Foods reported sales of $5.6 billion, and with the recent acquisition of Wild Oats Markets based in Boulder, Colo., Whole Foods now operates 270 stores in three countries.

Using Whole Foods as an example, Chamberlain points to the “paradox of profits” as a way for businesses to have successful revenues and a positive impact.

“The best way to maximize profits is by not aiming directly at them,” Chamberlain says. “We achieve profits by not focusing on them, but rather by focusing on a higher business purpose—customer satisfaction, employee happiness, social and environmental responsibility and great products.”

Sustainable on a Local and Global Scale

Whole Foods accomplishes this through several techniques. The company aims to sell products which improve the health of their consumers, says Chamberlain. It also strives to treat employees as team members. Employees have access to open salary information, gainsharing and stock options. Also, a salary cap decreases the disparity between the CEO’s pay and the average worker’s salary.

In addition, the company aims to give back on a global scale. Through the Whole Planet Foundation, the company partners with Grameen Trust of Bangladesh to battle poverty. The foundation has spurred entrepreneurship by offering micro loans to poor women in the region of Costa Rica where the company buys pineapples and bananas and also in an area of Guatemala known for coffee production.

For those who receive the microcredits, Chamberlain says it “significantly improves the living conditions for themselves and their families.”

The Silent Stakeholder

Chamberlain says Whole Foods is similarly dedicated to minimizing environmental impacts.

“The environment is the silent stakeholder,” Chamberlain says. “Everyone else can … call you on the phone or send you an e-mail. But the environment cannot do that.”

Whole Foods has several approaches to protecting the environment, including supporting organic, local and sustainable agriculture, constructing locations according to green building standards and off-setting energy use by purchasing wind-energy credits.

Chamberlain concluded her lecture by challenging students to incorporate conscious capitalism in their future careers.

“We believe this is the only system that is sustainable over the long term,” Chamberlain says. “I hope that each one of you will challenge yourselves to, instead of criticizing the business failings of current large corporations, think about how we can contribute individually to changing both the reality and the perception around businesses and to move the world toward a more holistic and conscious era.”