To foster a culture of transparency and prevent repeated errors, Seventh Generation publicly rewarded the employee who made the biggest mistake each week. This encouraged open admission of failure, allowing everyone to learn from it instead of hiding it.
Seventh Generation's co-founder admits that many eco-friendly products, like their disposable diapers, merely reduce negative environmental impact rather than eliminating it. He argues the industry needs a "sustainability 2.0" focused on reusable and zero-waste solutions.
While manufacturers hid that their toilet paper was recycled (associating it with low quality), Seventh Generation insisted on printing "Made with 100% Recycled Paper" on the packaging. They successfully turned a perceived negative into a badge of honor for eco-conscious consumers.
In the 1980s, Seventh Generation's founder learned that environmentalism alone wasn't a strong enough selling point. He successfully marketed products like water-saving showerheads by first emphasizing the economic benefit to the customer ("you'd save money") before mentioning the environmental gain.
Reflecting on their partnership failure, a founder realized the core friction was that both he and his partner wanted ultimate control. This dynamic worked when they were interdependent during a growth crisis but ultimately became untenable because, as he put it, "at the end of the day, I like being the boss."
In a highly risky move, Seventh Generation sold its profitable mail-order catalog business, which accounted for 80% of sales. They correctly intuited that the wholesale retail business had a much higher long-term upside and that they couldn't afford to fund both channels simultaneously.
Seventh Generation's CEO was ultimately fired partly because his focus shifted from pure operations to building a "responsible business movement." Activities like public speaking, writing, and getting arrested for his beliefs made his board nervous, especially while fundraising for growth capital.
To differentiate in a crowded craft beer market, founder Alan Newman banned typical marketing language about "finest ingredients." Instead, he positioned Magic Hat as a lifestyle brand centered on music, sponsoring festivals and aiming for it to be the go-to beer to bring to a party because it was "fucking cool."
When a founder took a sabbatical during a crisis, the lack of a written agreement about his return led to a complete breakdown. One partner felt abandoned and moved on, while the other was shocked to be fired. A simple document clarifying expectations could have saved the partnership.
Jeffrey Hollender's ability to raise $850,000 was not based on the new company's merits alone. The vast majority of investors came from his previous venture, where they had received a 10x return, making them eager to back his next project regardless of the specifics.
When their first major grocery retailer, Albertsons, entered a labor strike over healthcare, Seventh Generation faced a dilemma. Instead of pulling their products or staying silent, they donated all profits from Albertsons sales to the workers' strike fund, actively opposing their retail partner's position to uphold company values.