Corporate Social Responsibility and Ethics in Patagonia: A Case Study

Corporate Social
Responsibility and
Ethics
Individual assignment
Junlong Hu

Content
Introduction......................................................................................................2
Company background and sustainability activities...........................................3
Asses 1..............................................................................................................4
Sustainability operation and strategy ........................................................4
Asses 2..............................................................................................................7
Sustainability activities on profitability.......................................................7
Elaborate..........................................................................................................8
Stakeholder initiative drives shareholder theory .......................................8
Conclusion........................................................................................................8
References:.......................................................................................................9

Introduction
Consideration of both social responsibility and profit maximization has long been
a matter of discussion among corporations. This is a challenging task for many
companies, as not every firm can handle both. However, with the fast growth of the
economy, manufacturers and industrial enterprises have caused significant damage to
the environment and climate. However, not every corporation realizes the deteriorated
condition of the environment and the significance of sustainability for future business
growth. This report will use Patagonia as an example by analyzing the correlation
between its sustainable activities and profitability, how sustainable operation is
integrated with company strategy, and identifying whether Patagonia is
a greenwashing and how it balances corporate social responsibility with maximizing
profits.
Company background and sustainability activities
Patagonia is a company that specializes in outdoor apparel and environmental
protection. The firm was founded in 1973 by Yvonne Chouinard and has its
headquarters in Ventura, California, United States. It has between 1,000 and 5,000
employees, more than 70 locations in 16 countries, and a market value of one billion
dollars. In addition, Patagonia started "1% for the Planet" in 1985, a program that
donates 1% of annual sales to non-profit environmental groups to support and protect
the Earth's ecosystem. It is important to note that this action is not simply a publicity
marketing ploy; it is also put into the registration information and regulations, which
demonstrates Patagonia's determination to restore the ecological environment of the
planet. (Patagonia, n.d.). In addition, since 1996, the company has used only organic
and regenerative materials in its manufacture, including organic cotton, hemp,
recycled polyester, and recycled nylon, among others. These materials can be recycled
and reused to produce several products. Furthermore, all Patagonia-owned stores,
offices, and delivery centers are powered completely by renewable energy (Patagonia,
n.d.). Moreover, In 2012, Patagonia was the first firm in California to be certified as a