As we head into a new decade, I couldn’t resist my last post of 2019 being about Patagonia, a company I continue to love and salute for its unswerving drive to make the world a better place, whilst still remaining hugely profitable and attracting and retaining a talented tribe.
“The examined life is a pain in the arse.” stated the inspirational founder Yvon Chouindard, however, he is a man on a mission to hold his company to account and has been for some time.
A competitor Bayard Winthrop, who is the founder of US retailer American Giant says that Patagonia is the company all retail competitors use as a best in class benchmark. He captures the Patagonia approach well “Patagonia is about two things: quality and values. Simple as that. They consistently execute on those two core ideas, and don’t get caught up in the noise. This is effectively what puts them in a class of their own.” Simplicity always rules in a complex, over-crowded, complicated world.
Chouindard seems to have been brought to us way before his time with Patagonia at the forefront of what is now emerging as an increasingly sought-after business approach – profit with purpose.
This isn’t unsurprising as today’s customers want their money to go to companies that will use their money to make the world a better place. Patagonia donates 1 percent of sales to environmental non-profits, and in 2016 gave 100 percent of Black Friday sales—about $10 million—to environmental groups.
Late last year, it changed its mission statement to “We’re in business to save our home planet.” Backing this to the hilt, in September, Patagonia shut down its stores and offices so that employees—including the CEO —could strike alongside youth climate activists.
As a growing number of consumers understandably worry about our environment, Patagonia’s activism in this space has been good for business. The number of belief-driven buyers, who choose a brand based on its position on social issues, is growing worldwide, and includes 59 percent of all shoppers in the United States, according to a survey of 40,000 consumers by market consultancy Edelman.
Patagonia is also pushes it out of the ballpark too when it comes to innovation and trying to help our planet. It was the first company to make fleece out of recycled bottles with its synthetic chinchilla, or “synchilla,” which it unveiled in 1993. In 2005, it launched “Worn Wear,” which sends employees to college campuses and climbing centres, teaching consumers how to repair things; the company also repairs customers’ clothes in 72 repair centres globally. In 2011, Patagonia ran an ad in The New York Times telling customers “Don’t Buy This Jacket” to discourage over consumption. Earlier this year, Patagonia said it would prioritize other “mission-driven companies” over companies like financial institutions when making co-branded apparel like corporate vests.
This cultural package of uniqueness continues to attract a type of tribe that are committed, motivated and clamouring to be part of the company. More than 9,000 people applied for 16 internship positions last summer. Prospective employees are attracted not only by what it stands for and how innovative the company is, but there’s also perks like on-site childcare, a cafeteria selling subsidized organic meals, and the opportunity to surf or hike at lunchtime.
Patagonia doesn’t rest on its laurels and continues to ‘call’ itself. It’s now supporting the B Corporation movement and even though I’ve only just read about this on the website, I like what I see. Companies, big and small, signing up to this are legally required to balance profit and social and environmental considerations.
Thinking back to the quote regarding the core ideas that sit at the heart of Patagonia – values and quality – they’re absolutely critical to the success of a company, along with defining a compelling purpose, vision and strategy that all align. Do click here to find out more about my Culture Capitaliser programmes that can help a company go to the next level of purposeful, connected performance, whilst also making a difference for its customers, colleagues and community.