The Ethical And Sustainable Business Practices Of Patagonia

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.

Robert Swan once said “the greatest threat to our planet is the belief that someone else will save it.” Two companies that understand this concept are Patagonia and Nike. How they address these issues regarding sustainable business practice vary, however. Both have made it their mission to deliver excellence and make the best quality products within their industries, Patagonia focussing more on outdoor active wear, while Nike is more sports oriented. Part of this process has been developing products from sustainable sources. Patagonia, for example, actively took a stand against chemical intensive cotton in 1994, and has since switched to less harmful means of organic cotton within all their cotton-based products. They are even going the extra

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

or so many years our society has been thinking of forming new creative and innovative businesses, which would be more environmental and customer friendly. Nowadays a large number of different companies follow the social, ethical, as well as moral consequences when it comes to their decision making. One of the relatively new concepts involving economic and social concerns is Corporate Social Responsibility. Many of us apply this approach not only at work, but also in everyday life without even recognizing.

In spite of all advantages mention earlier about ethically and socially responsible business practice, it also has disadvantages, limitation and challenges. The most common and obvious limitation would be the cost that comes together with every investment a business does in order to meet all publicity’s requirements, for instance setting up Ronald McDonald House Charities. Every business has a goal which is at the top of their goal list and it is to be profitable. What is more, it is challenging to maintain the publicity’s and stakeholders’ satisfaction when investing into the society, employees and the environment.

Bertrand Piccard quotes, “In the 21st century, the heroes will be the people who will improve the quality of life, fight poverty and introduce more sustainability. This is a powerful message, it sums up the concepts discussed throughout the course. Additionally, the case studies such as the New Belgium Brewery, SC Johnson and The Kimberly Clarke organization have been proven to practice this philosophy. As society progresses in its efforts to provide a more sustainable future, there is a fundamental foundation of principles that must be followed to ensure success. Sustainable business development takes into account the application of business operations as it relates to the three pillars of sustainability, which is a dynamic yet integrative place to begin this journey. DesJardins, (2006) calls for a re-imagination of the future to create a vibrant sustainable model; which forms similar beliefs to Piccard. In addition, organizations are more inclined to create sustainable practices based on consumer demand and the willingness of leadership to participate in sustainability programs.

Utilizing this knowledge, we can determine whether the actions of Chipotle qualify it as a socially responsible organization. In studying Chipotle, one would can acknowledge multiple practices that qualify as abiding by the standards of a socially responsible business. Chipotle has made a commitment to provide healthy food ingredients, purchased from local farms that practice humane husbandry, and seeks to execute business in the most environment-friendly means possible (Chipotle). Chipotle has gone beyond industrial norms, and

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.

In today’s economy, sustainable entrepreneurship is a popular topic. Companies all over the world are trying to create a green image. A sustainable business has a positive impact on the global and local environment, community, society and economy, and focuses on the three P’s: People, Planet and Profit (Milieufocus, par. 3). The focus on pPeople looksstand for fair and beneficial business practices towards labor and the community and region in which a corporation conducts its business. Emphasis on the pPlanet

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,

Patagonia Case Study “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” Since being founded in 1973 by outdoor enthusiast Yvon Chouinard, Patagonia has gone to great measures to follow their mission statement and build a brand based on quality, trust, sustainable practices, innovation, and loyalty. By becoming a pioneer of using organic cottons in its product lines and using environmentally sustainable processes to make its products, Patagonia has managed to appeal to a certain yet growing consumer base. The consumers are men and women between the ages of 18-40 primarily in North America (West Coast and North East) who are active, outdoor nature lovers, and are supporters of sustainable and environmentally friendly practices. In addition, they are the ones who try to live a healthy lifestyle by eating organic products and attempt to reduce their environmental impact by

“Sustainable” business practices are being touted, or even required, more and more by western society. What is ANZ’s sustainability policy and how is this congruent (or not) with cutting edge sustainability thinking and theory. Does this thinking and practice change across borders? And if so, how does the ANZ’s Australian head office engage with it? Does what they espouse align with the reality of their practice?

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

Amazon is the big online shopping conglomerate we know today, which is known for their presence in the online shopping scene. They started with Jeff Bezos’ leadership, growing to where they are today. Amazon is a powerful company, however it is not without its problems. The company’s problems regard its strategies with growth, compared to Patagonia, leading them towards unsustainable results (LMPGS). To bring forth my proposal, I will talk about the narrative of Amazon’s start. Also, the definition of sustainability and why it’s relevant to the proposal at hand. Thirdly, a counter-argument will be brought forth on a practice used by companies that counteract sustainability. The proposal to change practices, such as the waste of packages, and the communication with suppliers. Amazon could be made more sustainable by studying other, less growth-oriented companies.

This research is compiled to explain how good ethical practices and good values in business can yield sustainability within the business and the society as a whole and in order to do this the concept of ethical business practice and values have to be understood.