Etsy, the online seller of handmade and vintage goods, was founded as an alternative to mass-manufactured products. The company grew substantially in its first decade but remained unprofitable. When Etsy went public, stakeholders demanded a new level of financial returns and accountability. But the company continued to struggle to contain costs—until a new CEO arrived with a plan for a “purpose-driven turnaround.” In this episode, Harvard Business School professor Ranjay Gulati discusses his case, “Etsy: Crafting a Turnaround to Save the Business and Its Soul,” which explores how CEO Josh Silverman made Etsy profitable by rediscovering the company’s commitment to social and environmental sustainability.

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