Patagonia Another Way of Doing Business

Patagonia makes their products by using natural resources and its consumers would really enjoy while they are using them. The situation of the environment is one of the most important reasons that Patagonia starts its field. Chouinard and Stanley mention that the state of environment is becoming worse and worse. The Responsible Company shows that the behavior of an enterprise in designing products, source materials and manufacturing is heavily influenced by risk. Therefore, the gradual increase of corporate responsibility will slow down a lot of problems.

“Let every individual and institution now think and act as a responsible trustee of Earth, seeking choices in ecology, economics and ethics that will provide a sustainable future.”

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

Embrace new technologies to improve efficiency, maintain environmental stewardship through green practices and sustainable operations, support continuous improvement of the business processes, develop employees’ capability, and provide excellent customer services.” (Hillsborough County, 2015)

The culture for Patagonia is environmental friendly, they have analyzed the human relations behavior to achieve efficiency and high employee moral. Patagonia provides both intrinsic and extrinsic rewards to their employees. The intrinsic rewards offered by Patagonia is offering employees to display their passion. The extrinsic rewards are the benefit of having a child care on campus and offering exercise classes during lunch breaks.

Each jacket Patagonia produces leaves behind two thirds its weight in waste. Every product they make, we cannot give back to the Earth. Their mission statement clearly states, “ Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” Patagonia has taken the less traveled path with their advertisement, but one that has helped them grow leaps and bounds. By discouraging sales and being upfront about how the production of their clothing hurts the environment, they are building an extremely loyal customer who will not only buy their product, but not purchase from other competitors. You have to admit that this advertisement is smart, but with smart comes a lot of

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.

Patagonia provide a work environment and values by offering benefits they have been giving to their employees. Most businesses in the world like Patagonia usually consist of many divisions and one of the divisions is employees who play a part in the achievement of organization’s goals and objectives. “The company has run a child care facility at its headquarters since 1985. Here, children remain close to their parents and are considered to be as much a part of the company as its employees” (Ferrell, Hirt, Ferrell, 2009).

In the context of our business model our number one key process is our Rules and Norms (a complete breakdown of Patagonia’s current business model and a to-be-proposed business model are available for review in Exhibit I). This ethos that started with the founding of Chouinard Equipment continued through the creation of Lost Arrow and indeed Patagonia. Our self-proclaimed “dirtbag” culture has resulted in some unorthodox business practices over the years. We pride ourselves on our efforts to reduce the social and environmental impact of the lifetime of the goods and services we produce. This is something that our competitors recognize but do not focus efforts on; for

“Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” Patagonia's unique mission statement shows what they stand for and proves to competitors that their products will always be high quality without harm to the environment which is very important to the target market that the brand sells to. With a mission statement this bold consumers know that they are buying products from a company that cares which is rare to find because how competitive the market is. What propelled Patagonia into the limelight as a premier outdoor clothing brand was its high quality and sustainably produced line of products. Patagonia was the leading company to pave the way in waste reduction. Patagonia's iconic design and high tech materials allowed for the brand to gain significant market share amongst consumers.

This report describes the systems, policies, and procedures of Patagonia’s reverse logistics structure and corporate responsibility model. Patagonia utilizes a unique system with regards to how they process and furthermore “end”-process its products. We will discuss the history of the company to include the founder, Yvon Chouinard, to paint the picture of the company’s foundation and environmental initiatives which shape its logistical processes. We will discuss the typical reverse logistics process steps including tracking the supply chain, reverse logistics partners and downstream players. We will describe the company’s overall policies and procedures with regards to its reverse logistics and sustainability with emphasis on the benefits

Patagonia “… contributes 1% of its annual net sales to environmental groups and has preset employee-friendly policies” that made record-breaking profits (Ferrell et. al., 2009, pg. 352). This was a success by the implementation of ideas from employees, who are from all parts of the company. According to (Ferrell et. al., 2009, pg. 352), members of the company “… serve on a council where they work together to determine which organization they will support, this allows all members to contribute to the cause; therefore, creating a since of affiliation, achievement and worth, which is a critical issue and factor for the business. The next key fact and critical issue was the company receiving “… criticism from the business community for their unorthodox business practices”, yet employees remain loyal to the cause (Ferrell et. al., 2009, pg.

HRM system at Patagonia is a blend of Contingency and Configurational perspective. The ultimate goal of HRM system is to deliver specific types of employee behavior, which would generate desired performance. These behaviors may be specific to individual, group or organization as a whole, to provide the company with the differentiation strategy to gain a competitive edge over its competitors.

The responsible company, a firsthand account of Patagonia’s rise to become a leader in sustainable business and environmental practices. This book goes over the ethical and sustainable business practices that Patagonia has been using for the past 40 years. They started off as a small company called Chouinard Equipment, they sold rugby shirts, ice axes, and much more basic mountain climbing equipment. Throughout the course of this paper I will be discussing, Patagonia’s values, ethical framework, and the different elements that made them a highly sustainable business.

Both Patagonia and North Face compete in the same outdoors apparel industry. Being that both firms are in this industry each places a very high emphasis on their commitment to the environment and their commitment to societal values. There are many values both organizations emphasize. The environment is one issue each organization have valued and stressed. Patagonia and North Face both use sustainable fibers, such as organic cotton and recycled polyester, while also innovating and creating new fibers and processes to reduce the impact of their