9 minute read
Trust, Stromberg, and Steinar J.
Norwegians are known and respected for their honesty, practicality, and hard work. They have a close bond with nature and legendary sailing skills. In the 1970s their farming, forestry, and fishing industries were radically transformed by the discovery of oil. Now finance is Norway’s greatest export. The country is home to the world’s largest Sovereign Fund, with more than 1 trillion dollars, that comes with a brief for ‘socially responsible finance’. Add to this incredible journey a certain Mr Steinar J. Olsen. He is one of Norway’s most innovative, influential, and respected entrepreneurs as well as the Founder and Chairman of the sports and outdoor clothing brand Stormberg. Under his captaincy Stormberg has sailed into uncharted waters when it comes to social inclusivity, ethical sourcing, and trusting their staff. 1% of sales are allocated to charitable projects and Mr Olsen has been recognised by the Nordic Business Forum as the second most responsible Nordic leader. Rather than talk business on the golf course, Mr Olsen goes hiking in the mountains to discuss matters with the prime minister, encouraging the government to follow Stormberg’s policy that part of their workforce is made up of those who are typically excluded; this includes people with substance abuse problems, ex-prisoners, and those who suffer from mental health problems. NWIND spoke with Mr Olsen about trust—one of the cornerstones of Stormberg’s success, and part of the company’s ethical and sustainable business approach that positively shapes government policy and improves communities.
What's in a name?
Advertisement
Q: Looking on the map of Norway, I could not find Stormberg, (maybe I overlooked a really tiny village). I travelled through the impressive Stormberg mountain range in South Africa last year—where does the name come from? How did you know this would be the right name for your company?
A: I hadn’t heard of the Stormberg mountains when I founded the company. The reason I chose Stormberg was that I wanted a name associated with Nature. We Norwegians love the mountains and live in a country with harsh weather, so the name consists of ‘storm’, which means the same in Norwegian, and ‘berg’, which means mountain. The name works well in English and in all Scandinavian languages. We tested it and came to the conclusion that we had found the right name. I grew up near the sea and spent my time on boats and also in the mountains, which had great trekking areas, so I did lots of hiking.
Q: Your organisation and its structure are based on trust, respect, and politeness. What were the moments in your life when you learned to trust, and how did you come to have the sense of integrity and decency which you later instilled in Stormberg?
A: When I was a little boy I always believed that people are intrinsically good; I trusted people, and that has influenced the way I run Stormberg. I believe that everyone deserves a second chance, no matter what they may have done in the past. It isn’t easy to pinpoint a particular starting point, but I think it has to do with the way I was brought up—with belonging to a loving family. My family and close friends have always been very important to me. I believe in loyalty and long-lasting friendships. We are all shaped by the past, by our life lessons, and by the people we meet, especially those who have inspiring stories to tell.
For example, the first time I employed someone from a prison was back in 2002. He was still in jail when he started working for us. He was allowed to leave the prison at 7 o’clock in the morning to be at Stormberg by 8, and he had leave at 4pm to be back in prison by 5. I remember interviewing him for the job. It was difficult for him to speak because he was rather nervous. I was the first potential employer he had met since he went to prison, and he was not very familiar with the Norwegian language. But I felt I could trust him. At the end of the interview he said, ‘If you give me this chance you will never regret it.’ That was 16 years ago, and he is still an employee today. He has played an important part in the growth of Stormberg. It was very important; he is a very positive employee and that experience made it possible for me to employ more people from prison. At the beginning, in 1998, I had started to employ people who had various difficulties getting a job, but 2002 was the year I began working with someone directly from prison. In the following years I recruited employees from prisons all over Norway.
Q: You had several businesses that failed before Stormberg. How were you able to find trust in yourself and your abilities? What gave you the motivation to start again?
A: Well, I was 16 when I started my first business, and 27 when I founded Stormberg. Of course, it was tough when the previous businesses failed, but I knew I would never give up. In fact, it was never an option to give up because I had a family to provide for, and a debt I wanted to repay in full. I have always believed in hard work, endurance, willpower, and capable employees. I also believe in the value of having an influential business that really changes things—I have these skills, and this is also what motivates me.
Planet – People – Profit
Q: When you founded your company 20 years ago, what kind of response did you receive from investors, backers, and customers? Was it difficult to win their trust?
A: The sports industry consists of many strong international brands which had a very different level of financial resources compared with Stormberg. Supporting Stormberg was not an obvious decision, and no one wanted to give us money. Therefore, I chose not to focus on investors. I decided to start with the small amount of money I had, and then carefully build the business, stone by stone. In the first year there were four of us, and now we are 370. We have enjoyed careful, but positive growth over these 20 years.
Trusting your intuition
Q: After 20 years of building your company on a platform of sustainability and inclusion, while still making a profit, you are now focusing on ‘inclusion, diversity, sustainability and animal welfare’—how did you know that it was time to step into something else full-time? What did your team think of this decision?
A: In 2014, I spent a month hiking in the mountains. When I returned I was glad to see that the company had had one of its best months ever. That was a very good feeling. I have very competent colleagues, which is calming, because I know that Stormberg’s daily operations now go on smoothly without me. I think it’s a natural process. I’m very content to be able to spend more time working for sustainability, animal welfare, diversity, and, of course, the inclusion of people with mental problems, substance abuse problems, and prison sentences into the workforce. This is very important to me. The team were very pleased to be responsible for everything related to daily operations, and they are happy that I have more time to do the things that are close to my heart. But no doubt I will still be a very active chairman.
Q: What initiatives are you planning?
A: The Norwegian public sector is important for Norwegian society, employing around 40-45% of the workforce. Earlier this week I met with government leaders to discuss a new initiative. At Stormberg, 25% of our employees are people who have had difficulties entering the workforce. Now, in the areas that join the initiative, 5% of new employees in the public sector will be such people. If this works out well in Norway it will be a big step in the right direction, benefiting many people who are struggling to find jobs, especially young people. We are doing our best to inspire the government. Last autumn I went hiking with the Norwegian prime minister and this was one of the issues we discussed. It’s very important to work to influence both businesses and government.
Q: Stormberg has an exemplary record when it comes to workforce practices, community empowerment, and a sustainable business model. How do you find the right people to carry your vision forwards, what do you look for in a person?
A: In order to succeed I have focused more on finding people with the right qualities and values, those that are important to us at Stormberg. Diversity and inclusion is a goal in itself, because it gives us the opportunity to do better for our customers, and it allows us to better understand society. To me, the most important thing is that we associate ourselves with people that believe that what we do is important.
Q: Good intentions can have unfortunate consequences—how do you create trust between your business and your customers?
A: It is important that our customers can see and feel that the company is doing everything it can to contribute to a more sustainable future, and that can sometimes be difficult. It’s important for us to have a collection made of recycled plastic, because we need to use the plastic that already exists; it must be given value, and in a positive way. If all the world’s clothes were made from cotton, we would have a big problem feeding everybody. 5% of the world’s cultivated land is used for cotton production, these 5% could be used for food production instead. Also, pesticides are used on cotton plantations, which is neither good nor sustainable. At the moment we are participating in a research project led by Norway’s largest research institute, SINTEF, in order to learn more about microbeads and how to combat plastic pollution. We are trying to be part of the solution.
Q: 1% of your profits go to charity—what response has this commitment earned from other business leaders? When can we expect all large companies to make a similar commitment, despite the travails of the stock market and the world's economy?
A: Our customers, partners, and other businessmen greatly value Stormberg’s efforts to make the world a better place. However, I’m rather surprised that more businesses have not committed in the same way that Stormberg has—that might be a sign that it is difficult to move from words to action. Many agree on the idea, but there are only a few who translate their beliefs into action as enthusiastically. I believe all businesses rely on a well-functioning society, which is why it’s important to get engaged beyond our business interests.
I believe in telling the stories, showing what is possible. Many businesses understand the story of money, so maybe Stormberg can be an inspiration. Stormberg is the best-selling outdoor clothing brand in Norway—maybe the way we run our business can be an inspiration to others. We have been successful in doing our part to change social norms, and we have also grown successfully, reaching excellent economic results. If we work to make society better, it is also better for the company. We are all part of the same society and we need it to function well.
The first 10 years I travelled around China a great deal, and I have colleagues in China who follow up on the factories where our goods are produced. The positive thing here is that we can have an impact on the factories that produce our clothes—by improving working conditions, by paying a fair price to factory owners who then pay a fair salary to their employees. If we all do our part, it really makes a difference.
Q: What do you delight more in, the known or the unknown? Where does your confidence stem from?
A: To create something new, I think we need to explore new paths; we need to have the requisite trust to walk them. I can say, from my own experience, that it's ok to make mistakes, and if we learn from those mistakes we do better the next time. As a child I was not expected to be the best, to perform at a high level. I was expected to do the best I could, and that was always enough—to do what I could. That gave me a sense of achievement and better self-esteem. And maybe that also gave me the confidence to try new things, to venture into the unknown, and to walk a new path.
Norwegian winters are long and dark—perhaps the trust people have in themselves and one another comes from having to deal with such an unforgiving climate? Or maybe the answer can be found in the distant past, when the Norsemen went on raids, leaving their wives in charge of the farmsteads, rowing thousands of kilometres, relying only on their fellow men. It is clear that trust forms the foundation of any community. Enabling those who have been left out in the cold, for whatever reason, to rejoin society and contribute the best they have to offer—this is part of the success of this extraordinary businessman, and a call to action for the wider business community.
Text By: Paul Emmet
