A more compassionate capitalism, with Cotopaxi’s Davis Smith
Feb 20, 2025
auto_awesome
Davis Smith, founder of Cotopaxi, an outdoor brand dedicated to social justice, discusses the transformative power of business. He shares his journey of integrating purpose into a brand, highlighting lessons on team dynamics and the significance of gut feelings in entrepreneurship. Smith reveals the innovative 'Lobatical' program that enhances employee loyalty and explains his bold decision to step down as CEO to foster new leadership. With a vision of compassionate capitalism, he inspires listeners to embrace both adventure and social responsibility.
Davis Smith founded Cotopaxi out of necessity during an adventure race, leading to a unique brand identity focused on creativity and social impact.
By stepping back from his CEO role to serve his church, Smith underscores the importance of aligning company leadership with core values and vision.
Deep dives
Atio: A Revolutionary CRM
Atio stands out as a customer relationship management system designed to adapt to a company's unique workflow, rather than forcing them to conform to its own processes. Unlike traditional CRMs, Atio employs AI to automatically organize contacts, sync calendars, and enrich data without requiring manual input. This innovative approach streamlines complex business processes and frees teams to concentrate on scaling their operations. With Atio, businesses can expect efficiency and greater productivity that aligns perfectly with their specific operational needs.
Davis Smith and the Birth of Cotopaxi
Davis Smith founded Cotopaxi, an outdoor gear company, out of necessity during an adventure race where he had to quickly create backpacks from leftover fabric. This led to a unique brand identity characterized by bold color combinations and one-of-a-kind bags that resonate with consumers. Every product is distinct, showcasing the creativity and passion of the artisans involved in their creation, which has resulted in an impressively low return rate. Over the years, Cotopaxi has built a loyal customer base and a strong reputation among outdoor enthusiasts by combining quality products with innovative design.
The Mission-Focused Approach
Cotopaxi is guided by a simple yet impactful philosophy: 'Do good.' The company's social mission is integral to its operations, as it donates 1% of its revenue to fight poverty and operates as a certified B Corp. Davis emphasizes that doing good is not just marketing; it reflects a deeper commitment to conscious capitalism. His personal experiences, particularly his time as a missionary, heavily influenced this vision, driving him to create a brand that prioritizes social impact alongside profitability.
Embracing Change and Future Leadership
Davis Smith has chosen to step back from his CEO role at Cotopaxi to serve his church in Brazil, illustrating a strong commitment to both personal values and the greater good. In transitioning to a leadership role outside the company, he highlights the importance of identifying the right talent to take Cotopaxi forward with an aligned vision. He emphasizes selecting leaders based on their compatibility with the company's values rather than personal relationships. As he considers his future, Davis plans to maintain a connection with Cotopaxi while potentially mentoring the next generation of leaders passionate about social impact.
Cotopaxi founder Davis Smith believes business can be a force for change. He built a world-class outdoor brand around a simple but powerful motto: Do Good. In this conversation with host Jeff Berman, Smith shares the spark of inspiration that set Cotopaxi in motion, the hard-won lessons that shaped his approach to building teams, and why he chose to step away from the CEO role amid the company’s impressive growth.