At TCU Neeley’s premier speaker series, Eric Artz outlined the importance of establishing a company’s objectives by clearly defining the company’s purpose and determining the corporate values. Artz said taking these steps builds a strong foundation for success.
March 18, 2024
By Miya Hillesland
In the realm of retail, where profit often takes precedence over purpose, Eric Artz, CEO and President of REI, is a leader in blending business success with ethical values. His journey from a small-town upbringing to the helm of one of the nation's preeminent outdoor retailers exemplifies the power of purpose-driven leadership and a solid foundation of values.
For REI, those values led to a company belief statement: A life outside is a life well-lived.
At TCU Neeley’s Tandy Executive Speaker Series, Artz discussed the importance of leadership within an organization, staying true to the established values, cultivating the community around a business, and supporting sustainability. The discussion was led by TCU Neeley School of Business Interim Dean Hettie Richardson.
REI, a co-op born in 1938 from the shared values of 23 climbers who wanted to encourage outdoor experiences and source equipment collectively, operates with a unique ethos. With no shareholders to answer to, the company is influenced by the insights and actions of its lifetime card-carrying members.
Richardson, who is a member of the REI Co-op, described her experience and the unique attributes of the business. “When you walk into REI it doesn’t feel like your average retailer, it feels like a different world. Artz has a natural leadership style that really fits with the REI brand,” she said.
The co-op structure not only fosters a deep sense of community, but also aligns with REI's bottom line, measuring success by better outcomes for employees, positive impacts on communities, and profitability. This devoted commitment is reflected in the distribution of profits, prioritizing employees' well-being, member benefits, and community investments.
“REI’s purpose is to inspire and enable a life outside for everyone. We strive to connect people to a life outdoors and encourage them to protect it,” Artz said.
This message resonated with attendees at the Tandy Executive Speaker Series, which included North Texas business leaders, and TCU faculty and staff and students.
Kassidy Allen, a Neeley student majoring in Entreprenurshp and Marketing said, “We learn throughout the BNSF Neeley Leadership Program the importance of living our values, and it was inspiring to hear Mr. Artz speak about how that played out in his own life.”
At the heart of REI's ethos are its core values—honesty, transparency, growth, and collective problem-solving akin to agricultural communities. Artz emphasized the importance of always being grounded in these values, ensuring REI remains true to its purpose both within its walls and beyond in the outdoor community.
For Artz, the outdoors and community are deeply intertwined. His upbringing instilled in him the values of family, integrity, and respect, shaping his approach to leadership.
“Nature doesn’t see the division that we see as humans,” Artz said.
Recognizing the importance of preserving nature for future generations, Artz is passionate about fighting for equitable access to outdoor spaces and championing diversity, equity, and inclusion initiatives in the industry.
Under Artz's leadership, REI’s profits have weathered storms like the COVID-19 pandemic by prioritizing the safety of its employees and closing down all in-store access. Artz believes a healthy enterprise starts with a healthy brand, and he's committed to reshaping and growing REI while holding true to its purpose.
“Profits had to take a hit at times in order to hold true to the company's values. Profits are in the back seat, and values are always in the front seat,” Artz said.
Artz emphasized the importance of clarity of purpose and adaptability in an ever-changing world. He urges business leaders to articulate their beliefs and values clearly, as these form the foundation for success, both in business and in life. Artz spoke about the importance of fostering conversations and being a flexible leader, drawing parallels between climbing routes and the ever-evolving landscape of business.
“Businesses will keep growing and changing, and it is important to be clear on your purpose and your values,” Artz explains.
First-time Tandy Executive Speaker Series attendee Kendra Mack, Vice President of DEIB at Kanarys, said, “Eric’s comment about how he impacts the values of his employees really resonated with me. I loved how he talked about his personal experiences and REI’s core values and how it plays a major role in his leadership style.”
Artz’s story serves as an inspiration for business leaders and a reminder that success is not just measured in profits, but in the positive change we create in the world.
