Discussion: How Leadership Influences Company Culture Complete your assigned reading for Week 4 (Chapters 14-17) and then read the article below that corresponds to this week's discussion topics. Then answer the questions below the article. Use concepts from the course textbook and article to support the information in your initial publication. You are required to support your initial publications and peer publications with information cited from all the sources you use and provide all sources in your reference list to meet APA style requirements. Leadership Lessons from a Pair of Socks When David Heath advises entrepreneurs to approach his product, he speaks from personal experience. Before officially launching the Bombas clothing brand in 2013, Heath walked around New York City with a backpack of sock prototypes that he handed out to almost everyone he encountered, including the homeless community, which he considered its target audience. This hands-on interaction gave Heath useful information and direct feedback that he took into account when designing the perfect sock. Staying close to your customers is essential to maintaining a mission-focused work culture, Heath said at a recent Business School meeting. He still personally delivers socks to the homeless during charity events, and participation is highly encouraged for all employees. Bombas holds up to 15 donation events monthly, including breakfast service at shelters and late-night soup deliveries in winter. "We put a lot of emphasis on company culture," Heath explains. "The people in our organization really live what we do... They come to work every day knowing they are fighting for something because they have built relationships in the community and can see the direct impact." As part of a recent crop of charities For-profit organizations that pledge to give away their product every time they make a sale, New York-based Bombas has donated more than 25 million socks to homeless shelters. Along the way, annual sales have surpassed $100 million, with year-over-year growth of around 100 percent for what has been called "the most comfortable, high-quality pair known to man." Heath, who studied business administration at Babson College, got the idea for Bombas in 2011 when he read that socks were the most requested item of clothing in U.S. homeless shelters. At the time, the startup Toms Footwear (founded in 2006) promised to donate a pair of shoes for every pair sold, a model adopted by Warby Parker when the eyeglass maker launched in 2010. Heath thought it could also work for socks Bombas funded 145.000 dollars in 2013 and then raised another million dollars in 2014 from friends and family. That same year, Heath made a $200,000 investment with Shark Tank's Daymond John. Bombas subsequently raised another $3 million in Series A funding. In its first two and a half years of business, Bombas sold (and donated) 1 million pairs of socks; The company surpassed 25 million donations at the end of last year. Adding to the company's social appeal, in 2017, Bombas became a Certified B Corporation, a designation given to companies that meet high standards of sustainability, income equality and community impact. Research suggests that millennials and Gen Z consumers really value the fact that companies have a social mission. As with any new company, Heath recognized some challenges over the past six years. At one point, Bombas' reliance on Facebook for marketing became an issue when the social media giant changed its algorithm in a way that hurt the consumer's cost per acquisition. This was a lesson in the need to diversify marketing channels. They have also overcome obstacles to maintaining sufficient inventory. One year, Bombas projected holiday sales so low that the company had to refund more than 1 million customer orders that could not be fulfilled on time. Another aspect of the learning curve was figuring out how to design a sock that would be most useful to the homeless community. Initially, Bombas donated the same socks that he sold. But the homeless population continued to request socks in darker colors, which the company's charitable partners explained was due to a preference for socks that would not show wear. Bombas modified the product to reflect that color preference, as well as adding features like an antimicrobial treatment and reinforced seams. In an effort to better measure the social impact of sock donations, Bombas is collecting more quantitative data to determine how communities benefit from their donations. As an anecdote, Heath already knows that Bombas is making a difference. By giving socks to a homeless shelter in North Carolina, one of more than 3,000 partners nationwide, the company was able to help the shelter save about $30,000 that was used to send two young people to community college. , said. Bombas is now expanding into channels beyond socks, including t-shirts How leadership influences company cultureBombas sold (and donated) 1 million pairs of socks; The company surpassed 25 million donations at the end of last year. Adding to the company's social appeal, in 2017, Bombas became a Certified B Corporation, a designation given to companies that meet high standards of sustainability, income equality and community impact. Research suggests that millennial and Gen Z consumers really value the fact that companies have a social mission. As with any new company, Heath recognized some challenges over the past six years. At one point, Bombas' reliance on Facebook for marketing became an issue when the social media giant changed its algorithm in a way that hurt the consumer's cost per acquisition. This was a lesson in the need to diversify marketing channels. They have also overcome obstacles to maintaining sufficient inventory. One year, Bombas projected holiday sales so low that the company had to refund more than 1 million customer orders that could not be fulfilled on time. Another aspect of the learning curve was figuring out how to design a sock that would be most useful to the homeless community. Initially, Bombas donated the same socks that he sold. But the homeless population continued to request socks in darker colors, which the company's charitable partners explained was due to a preference for socks that would not show wear. Bombas modified the product to reflect that color preference, as well as adding features like an antimicrobial treatment and reinforced seams. In an effort to better measure the social impact of sock donations, Bombas is collecting more quantitative data to determine how communities benefit from their donations. As an anecdote, Heath already knows that Bombas is making a difference. By giving socks to a homeless shelter in North Carolina, one of more than 3,000 partners nationwide, the company was able to help the shelter save about $30,000 that was used to send two young people to community college. , said. Bombas is now expanding into channels beyond socks, including t-shirts How leadership influences company cultureBombas sold (and donated) 1 million pairs of socks; The company surpassed 25 million donations at the end of last year. Adding to the company's social appeal, in 2017, Bombas became a Certified B Corporation, a designation given to companies that meet high standards of sustainability, income equality and community impact. Research suggests that millennials and Gen Z consumers really value the fact that companies have a social mission. As with any new company, Heath recognized some challenges over the past six years. At one point, Bombas' reliance on Facebook for marketing became an issue when the social media giant changed its algorithm in a way that hurt the consumer's cost per acquisition. This was a lesson in the need to diversify marketing channels. They have also overcome obstacles to maintaining sufficient inventory. One year, Bombas projected holiday sales so low that the company had to refund more than 1 million customer orders that could not be fulfilled on time. Another aspect of the learning curve was figuring out how to design a sock that would be most useful to the homeless community. Initially, Bombas donated the same socks that he sold. But the homeless population continued to request socks in darker colors, which the company's charitable partners explained was due to a preference for socks that would not show wear. Bombas modified the product to reflect that color preference, as well as adding features like an antimicrobial treatment and reinforced seams. In an effort to better measure the social impact of sock donations, Bombas is collecting more quantitative data to determine how communities benefit from their donations. As an anecdote, Heath already knows that Bombas is making a difference. By giving socks to a homeless shelter in North Carolina, one of more than 3,000 partners nationwide, the company was able to help the shelter save about $30,000 that was used to send two young people to community college. , said. Bombas is now expanding into channels beyond socks, including t-shirts How leadership influences company cultureHeath acknowledged some challenges over the past six years. At one point, Bombas' reliance on Facebook for marketing became an issue when the social media giant changed its algorithm in a way that hurt the consumer's cost per acquisition. This was a lesson in the need to diversify marketing channels. They have also overcome obstacles to maintaining sufficient inventory. One year, Bombas projected holiday sales so low that the company had to refund more than 1 million customer orders that could not be fulfilled on time. Another aspect of the learning curve was figuring out how to design a sock that would be most useful to the homeless community. Initially, Bombas donated the same socks that he sold. But the homeless population continued to request socks in darker colors, which the company's charitable partners explained was due to a preference for socks that would not show wear. Bombas modified the product to reflect that color preference, as well as adding features like an antimicrobial treatment and reinforced seams. In an effort to better measure the social impact of sock donations, Bombas is collecting more quantitative data to determine how communities benefit from their donations. As an anecdote, Heath already knows that Bombas is making a difference. By giving socks to a homeless shelter in North Carolina, one of more than 3,000 partners nationwide, the company was able to help the shelter save about $30,000 that was used to send two young people to community college. , said. Bombas is now expanding into channels beyond socks, including t-shirts How leadership influences company cultureHeath acknowledged some challenges over the past six years. At one point, Bombas' reliance on Facebook for marketing became an issue when the social media giant changed its algorithm in a way that hurt the consumer's cost per acquisition. This was a lesson in the need to diversify marketing channels. They have also overcome obstacles to maintaining sufficient inventory. One year, Bombas projected holiday sales so low that the company had to refund more than 1 million customer orders that could not be fulfilled on time. Another aspect of the learning curve was figuring out how to design a sock that would be most useful to the homeless community. Initially, Bombas donated the same socks that he sold. But the homeless population continued to request socks in darker colors, which the company's charitable partners explained was due to a preference for socks that would not show wear. Bombas modified the product to reflect that color preference, as well as adding features like an antimicrobial treatment and reinforced seams. In an effort to better measure the social impact of sock donations, Bombas is collecting more quantitative data to determine how communities benefit from their donations. As an anecdote, Heath already knows that Bombas is making a difference. By giving socks to a homeless shelter in North Carolina, one of more than 3,000 partners nationwide, the company was able to help the shelter save about $30,000 that was used to send two young people to community college. , said. Bombas is now expanding into channels beyond socks, including t-shirts How leadership influences company cultureIn an effort to better measure the social impact of sock donations, Bombas is collecting more quantitative data to determine how communities benefit from their donations. As an anecdote, Heath already knows that Bombas is making a difference. By giving socks to a homeless shelter in North Carolina, one of more than 3,000 partners nationwide, the company was able to help the shelter save about $30,000 that was used to send two young people to community college. , said. Bombas is now expanding into channels beyond socks, including t-shirts How leadership influences company cultureIn an effort to better measure the social impact of sock donations, Bombas is collecting more quantitative data to determine how communities benefit from their donations. As an anecdote, Heath already knows that Bombas is making a difference. By giving socks to a homeless shelter in North Carolina, one of more than 3,000 partners nationwide, the company was able to help the shelter save about $30,000 that was used to send two young people to community college. , said. Bombas is now expanding into channels beyond socks, including t-shirts How leadership influences company culture

Answer the following questions: 

1. Describe transformational leadership and explain how managers can participate in it. How is transformational leadership different from transactional leadership? Explain. 

2. What type of leadership style does the CEO of Bombas, David Heath, implement in the management of the company? Why? Explain.

3. Would you say that Heath is a charismatic leader? Explain. 

4. Discuss the source(s) of power that David Heath implements in his leadership to affect the behavior of other people.

5. Discuss how Heath motivates his followers using the guidelines of House's Path-Goal Theory.