Case Study Patagonia

Another challenge for companies when considering social responsibility is the possible negative perception of shareholders. Historically, publicly-owned companies had a primary focus of maximizing shareholder value. Now, they must balance the financial expectations of company owners with the social and environmental

Many firms are learning that being environmentally friendly and sustainable has numerous benefits. (O.C Ferrell, Fraedrich, Ferrell, 2015). This could enable them to increase goodwill from various stakeholders and also save money in the long term. This will mean that they are being more efficient and less wasteful of resources, which will enable them to be more competitive by satisfying stakeholders. The CEO of

Patagonia determines how its possible ventures will be both business practical and environmentally friendly by turning their company into a eco friendly environment. It clearly states this in their mission statement. “ Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis” Their main focus is going “green” to help the environment but also using business as a

Because corporations are established to profit and shareholders invest money with expectations of a greater return, managers cannot be given a directive to be “socially responsible” without providing specific criteria of checks and balances to which needs to adhere. Therefore, it is imperative to the success of a corporation for managers to not act solely but rather to act within the policies of the shareholders.

Every business organization has a social responsibility in ensuring that the environment it operates in is protected. Many companies have identified that they have a major role to play in protecting the natural habitat and ensuring that business is not only about making profits. Some organizations are setting aside funds that are developed in the protection of the environment while other organizations are setting a tree-planting day as part of their annual calendar. Companies have legal and ethical responsibilities that guide the organization in making sure that the environment is taken care of. The natural resource depletion and the environmental pollution have led to conservation groups setting rules that govern the company in utilizing natural resources.

Monthly meetings discussing the Workbook Process are currently too frequent, inhibiting the company from progressing in other areas. Our group suggests that these meetings involve all managers and lower-level employees from all departments and should be held annually, while meetings involving strictly managers should be held quarterly. Although the intervals between meetings need to be expanded, this does not mean that the information flow should decrease under the reduced meetings. Thereby, Patagonia should keep an open-door policy for departmental managers and allow the employees to give timely feedback whenever they discover potential problems or have suggestions for improvement.

Fashion Range Co. is a clothing retail company in Canada that offers great quality clothing for teenagers and adults. We are small independent company that compasses of 80-100 employees stretching across Canada making environmentally friendly materials for our fashion trend clothes while emphasizing the importance of sustainability. Our fashion trend is more demographically targeting young men & women aged 13 to 45. Our customers are part of a generation constantly looking for that next best thing. Our stores are mainly located inside shopping malls for our customers to best reach and online store at www.fashion-range.com. With a focus on the latest fashion trends, our customers can be confident in knowing they’ll receive

Patagonia’s value proposition is based on embedding environmental sustainability in every business decision it makes. Its core strategy is differentiation by focusing on durability and quality of products whilst minimising its carbon footprint and use of synthetic ingredients (what). The business model revolves around developing innovative technologies and influencing competitors and suppliers alike to adopt environmentally-friendly processes (how). Commitment to these causes while maintaining quality has allowed it to develop a loyal customer base amongst high income groups and athletes (who) and significantly increase customer’s willingness to pay.

1. Patagonia uses personnel and cultural control to apply this strategy. For personnel control, the company hires people who are as passionate about environment as Yvon.

The recent publication on Patagonia works says that it is an honor to be known as President Obama for the societies to working families. Patagonia is the best place for families. To support the families, Patagonia offers health care services other leaves as well as financial help who have no access to these benefits. Employees get lots of benefits like paid leaves, class play for kids etc. This makes the child curious and excited. They become more attentive to the class.

1. Strategy: Patagonia’s product differentiation as their strategy, through CSR, which involves sustainability, philanthropic initiatives, moral obligations, and reputation. They operate in ways to secure long-term economic performance by avoiding short-term behavior that is socially detrimental or environmentally wasteful. They do this all while keeping their quality high and having their core consumers in mind.

EcoSpun was started by the company Wellman Inc. and it completely changed how we view fabrics. These fabrics blend with other materials like cotton to make the product soft to the touch. Patagonia adopted this process to make recycled material that would help the environmental issues and make a really cool product. Yvon Chouinard founder of Patagonia is committed to making a change with pollution and to still have outerwear products that will last someone for many years. Chouinard and his team worked with Malden Mills to make the polyester out of recyclable bottles. There are billions of plastic bottles and they are harmful to the environment, Patagonia, as well as other companies, are taking them into make materials. As Chouinard company was helping with the environmental crisis and letting out millions of chemicals, he decided there had to be a change. His next steps are to find new recyclable fabrics as well as finding other ways to recycle polyester. Also, they are working to receive old Patagonia’s product to re-made into a fiber or other forms of

While Patagonia is a good role model, I think there are many other companies that are environmentally friendly. For example, Ikea has around 700,000 solar panels to power its facilities. They also purchase “close to 50 per cent of [their] wood from sustainable fosters” (Viles, Aaron) along with many other things. Ikeas goal is to be able to return as much energy back into the power grid as it consumes. (Howard,

Although their unconventional business approach can in no way be exactly measured to determine the effectiveness of it, the company succeeds at making the experience of purchasing one of their products special because the consumer knows they are getting a high quality product that was made in a environmentally friendly process. This unique positioning that Patagonia has in the outdoor apparel market, allows it to sell its products two to three times the average price of their competitors like Uniqlo. What differentiates Patagonia from its main competitors, The North Face Company and Columbia Sportswear, is that Patagonia has found and connected with a niche market that wants not only a high quality product but also a product that was made in an environmentally sustainable

A key issue facing management was balancing the company’s desire for environmentalism with its existence as a for-profit business. The idea of running a for-profit business implies operating at the lowest cost, growing as rapidly as financially feasible, and maximizing returns to financial stockholders ( I think it should be stockholder since it is financial return). A commitment to the environment can raise costs and hurt margins because environmentally-friendly policies are not the most financially savvy. This issue is important because Patagonia’s entire brand and