When Yvon
Chouinard founded Patagonia, his vision was to establish a company that creates
the best outdoor and recreational gear.
However, shortly after Patagonia had just opened their new Boston store,
the employees working there began to complain about getting headaches. After further investigation, the company
discovered that the same air in the store was being recycled, and there was
formaldehyde in the air from the cotton clothes. This is when Patagonia began to question their
business practices and changed their company mission statement:
“Build the best product, cause no
unnecessary harm, use business to inspire and
implement solutions the environmental crisis.”
This mission has led Patagonia to implement a variety of policies
and initiatives to help the environment. Patagonia turned to making all of their
clothes with 100% organic cotton and only using recycled polyester. This was only the start of these types of
programs and initiatives. Patagonia has
been able to make serious changes and impacts, not only because they are a
large legitimate corporation, but also because they were able to embrace and
understand the Reasonable Person Model.
They have been able to support people’s effective functioning by helping
them truly prospect about the future of our planet. I broke down the Reasonable Person Model into it's 3 components and how various policies and initiatives at Patagonia fulfill those...
1.
Model Building
Patagonia
knows that people need to have the opportunity to understand and explore. Patagonia attempts to convey the message that
our planet is facing severe effects because of climate change caused by
humans. They want to help people
understand. Being such a legitimate
company, Patagonia has been able to teach employees, customers, and other
companies about implementing sustainable practices and cleaning up their supply
chain. For example, Patagonia has paired
up with Wal-Mart to teach them how to integrate environmentally friendly
solutions in their supply chain.
2.
Being Effective
In order
for their message to really catch people’s attention, Patagonia’s message must
be clear and coherent. They can do this
by making a strong statement. For
example, Patagonia makes the promise to donate 1% of all their sales to
environmental organizations. Another
example is Black Friday, in which they donated 100% of their sales to
environmental groups, bringing in more than $10 million. By doing this, Patagonia is able to make a
strong statement that they value the environment over profits and that they are not going to do "business-as-usual".
3.
Meaningful Action
I feel Patagonia embraces this part of the Reasonable Person Model the best. Patagonia provides employees tons of
opportunities for them to feel that they are truly apart of something
bigger. For example, employees are
allowed to take up to 60 days of paid leave to volunteer at a grassroots
organization of their choice. This
opportunity allows employees to feel as if they are truly making a
difference. Patagonia also allows
customers to feel like they are making a difference simply by buying their
products. Customers are supporting a
company that they feel makes an actual impact and difference. It is important for people to believe that
they are contributing to the planet, because these small steps can lead to
larger ones. Even small efforts can make
difference. However, we know from Jevon's Paradox that as products become more efficient, there is an increased rate of consumption. Patagonia battles this by keeping their prices higher and developing ads that say "Don't buy this jacket" to help discourage over-consumption. They even came out with a recycling program for old Patagonia gear.
Patagonia has been able to enhance the prospection skills of
their customers to make them more aware and concerned about the future of our
planet. Slowly Patagonia has made an
impact by incentivizing the future, or more specifically, demonstrating the
wonders of our planet and how we should preserve these for future generations
to enjoy. Even though Patagonia would be
considered an expert in their field, they are able to communicate stories on an
emotional level that affects most people. This strategy has worked immensely in their
favor, as they continue to be extremely successful and contribute to
sustainability efforts.
It's interesting that Patagonia's "don't buy this jacket" campaign has shown to actually increase purchases of their products. Perhaps this is due to the fact that they are giving people a way of contributing to the environmental movement by buying environmentally-responsible products? I wonder if they will change this policy in the future. It's nice to see, though, that they are also giving some of their proceeds to charity and offer their employees the chance to volunteer with non-profits (helping to build their mental models and become more effective!). Very interesting questions here about how other companies could participate in the environmental movement in different ways.
ReplyDelete