Patagonia Sustainability Practices

Edye Pucciarelli

BUS 609

Case Study 1

May 20, 2014

Patagonia

Summary:

        Patagonia is a Ventura, California- based clothing company that was founded in 1973. Their product line is composed of high-end outdoor clothing and is a member of several environmental movements. Patagonia began by a group of climbers and surfers who promoted a minimalistic lifestyle. True to its founding values, the company continues to conduct business with the same sense. Further, the company is a certified B-Corporation, which according to the B Corp website is a company that is “certified by the nonprofit B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency.”

        Last year, the company ran a campaign that instructed customers to “buy less”. Customers did the very opposite and earnings rose 6% to $575M. Patagonia currently employs over 1200 people. (Bloomberg)

Social Responsibility and Sustainable Practices:

        In order for Patagonia to be deemed a B Corporation, the company must meet certain criterion in regards to governances, workers, community, and the environment. As depicted in the chart below, the company currently holds a B Score of 107 out of a possible 200.

        As detailed on the B Corp website, the companies governances is composed of independent members and is not publicly traded. The company shares its financials with its employees and its leaders come from various environmental arenas. From an employee standpoint, the company extends health benefits to even its part time employees. Further, external professional development programs are offered and utilized by over 80% of Patagonia’s full time staff.[pic 1]

        As a community, “100% of significant suppliers made transparent on website; >40% of management are women or ethnic minorities; >25% of employees took time off for community service; 1% of sales donated to environmental NGOs” (B Corporation).

        As a whole, the company is a major contributor to various environmental groups and commits 10% of its profits each year.  Since 1985, the company has donated $46M in cash to domestic and international grassroots environmental groups making a difference in their local communities (Wikipedia).   The company partakes in initiatives such as 1% For the Planet, World Trout Initiative, Environmental Internships, Common Threads Recycling Program, and The Footprint Chronicles.  As if that were not “enough”, the company also supports The Organic Exchange and The Conservation Alliance.