a basic duty of corporate social responsibility.pptx

business corporate social responsibility report and requirements

1. Corporate Governance and Social Responsibility Implemented in Patagonia Student name- Module name- Tutor- Dr Josh Poklad 1

2. Introduction Patagonia is an American company of outdoor recreation clothing and it is created by Yvon Chouinard in 1973 in Californa , America (Pankhurst, 2006). The company is known for its high-quality products and dedication towards social and environmental responsibility. Patagonia follows its basic principles towards the environment including reduce, repair, reuse, re-imagine and recycle. Mission statement of Patagonia is “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis” (O’Rourke and Strand, 2017). The company is also famous for promoting used wear and tells customers to consider twice while buying their products. 2

3. Organizational structure Patagonia follows horizontal organizational structure with decentralized decision making through its valued employees. Company’s organizational culture also includes strong relationships with its employees, family-friendly, democratized leadership, and flexibility, treating work as play and work-life balance ( Cuofano , 2023). 3

4. Organizational culture Patagonia’s culture focuses on environmental sustainability, work life balance and corporate social responsibility. Company’s culture is reflected in its quality products, employees satisfaction, supply chain practices, fair trade practices, flexible workings, good working conditions and fair audit practices. Company has active involvement in environmental practices. Company emphasis on transparency in its practices and maintain ethical operations through considering welfare of workforce and sustainable sourcing of products and material (O’Rourke and Strand, 2017). 4

5. Key governance roles and processes for accountability in Patagonia Company uses a steward-ownership model to distinguish economic and voting rights. The company’s Board of directors overseeing the operations, establishes strategic goals, check financial performance, approve major policies and provide support in promoting sustainability actions. Patagonia regularly publishes updates regarding social and environmental practices, detailing about challenges, goals and impact of sustainable practices (O’Rourke and Strand, 2017). 5

6. Key governance roles and processes for accountability in Patagonia Company implement training programs for their employees to ensure that employees adhere to company’s code of conduct, values and sustainability goals. This may led to increase the culture of responsibility and accountability within the company through its valuable employees. Last, company conduct regular assessments and audits regarding its performance and operations to find the areas for enhancement, check growth towards social responsibility and ensure compliance of company’s policies and standards. 6

7. Company’s approaches to ethics, responsibility, and sustainability Patagonia is a leader and known for its corporate social responsibility that it achieves through internal sustainability initiatives and donations and also by creating awareness among society towards environmental issues ( Kortum , 2018). Company is contributing 1% of its profits towards the welfare of society and environment. Patagonia has worked to increase the awareness for various other environmental issues through a blog named “The Cleanest Line” including a video about negative ecological effects of dams called "Dam Nation” ( Kortum , 2018). 7

8. Company’s approaches to ethics, responsibility, and sustainability Moreover, company has created a unique website named “Worn Wear” for the purpose of reselling used clothing of Patagonia in order to managing waste. In a highly competitive world, Patagonia propagates the best use of clothing stuff in place of disposing off used clothes and buying new one. 8

9. Critical review of ethical issue of company Patagonia’s mission is to follow the principle of social norms and introduce the practical methods for enhances environmental protection as well as individual well-being ( Bürklin , 2019). Company does not make their own products but pay other companies that have technical expertise in order to maintain quality at any cost. In Covid-19, Patagonia was one of the first companies to fully shut down their workings and ensure the wellbeing of their employees. 9

10. One of the ethical issues that is solved by the company is the campaign named “Worn Wear” for the purpose of reusing the clothing and reducing clothing waste. The campaign includes various components for inducing customers’ behavior regarding recycling, repair and disposal behavior of customers. Patagonia creates an online site for used clothing to implement current practices of mere consumerism. This way, social marketing has been applied in a commercial way and induce the customers’ behavior and contribute quality and good life. 10

11. Strength of Worn Wear Campaign Engages directly with customers. Build personal relationships with customers. Exorbitant efforts towards getting the clothes repaired. Give experience of conscious lifestyle to customers. Fulfill environmental goals of the company. Cause no unnecessary harm. Promotes simplistic lifestyle. 11

12. Weaknesses of Worn Wear Campaign High financial investment Skepticism among new customers. 12

13. Factors affecting social responsibility of Patagonia Accessibility Customers’ choice Inadequate Government support Legal formalities Competition 13

14. Recommendations Execute new product line. Provide new customer mindset towards social responsibility and sustainability Implement mobile applications and connect people at worldwide level. Encourage people and aware them regarding care for their own clothing. Implement more new campaign towards the sustainability. 14

15. References Bürklin , N., 2019. Worn Wear: Better than New—How Patagonia’s Social Marketing Campaign Enhances Consumers’ Responsible Behavior.  Social Marketing in Action: Cases from Around the World , pp.187-201. Cuofano , W.I.G. (2023) Patagonia organizational structure . https://fourweekmba.com/patagonia-organizational-structure/#:~:text=Patagonia%20has%20a%20particular%20organizational,defining%20the%20company's%20strategic%20direction. Kortum , G. (2018) Patagonia’s approach to environmental responsibility — Business Today Online Journal . https://journal.businesstoday.org/bt-online/2018/patagonias-approach-to-environmental-responsibility. O’Rourke, D. and Strand, R., 2017. Patagonia: Driving sustainable innovation by embracing tensions.  California Management Review ,  60 (1), pp.102-125. Pankhurst, R.J., Rapela , C.W., Fanning, C.M. and Márquez , M., 2006. Gondwanide continental collision and the origin of Patagonia.  Earth-Science Reviews ,  76 (3-4), pp.235-257. 15

16. 16 THANK YOU