The Roots of Patagonia’s Marketing Metaphysics
Patagonia was founded in 1973 by outdoorsman, entrepreneur and environmentalist Yvon Chouinard. In 1985, the company began to donate significant amounts of money to environmental groups.
When Patagonia ran into financial trouble in the early ’90s, according to an article by Phillip Haid on the Financial Post website, Chouinard decided that the answer was not to abandon his ideals, but become truer to them.
“Actions most companies would never dream of taking because they are so counter to common business practice, have been wildly successful for Patagonia,“ Haid wrote, “because at their core they embody the idea of ‘profitable good,’ namely, embracing profit and purpose to drive a better bottom line.“
These days, Chouinard and his executives appear genuinely to want to accomplish two seemingly disparate goals: have a profitable company based on the sale of items to consumers while denouncing materialism and encouraging conservation.
Patagonia doesn’t just talk the environmental talk, wrote Poonkulali Thangavelu for the Investopedia website. It walks the walk. “The company donates a portion of its revenue to environmental causes and uses recycled, Fair Trade-certified and organic material in its clothing. It also uses solar energy at its company headquarters, and it is one of the founders of the Sustainable Apparel Coalition, a group of companies that has promised to reduce its environmental footprint.“
For two years running, Patagonia has taken second place to Unilever on the Sustainability Leaders Report. Other companies that often make the list are Nestle, GE, Coca-Cola, Nike, Tesla and Etsy. But sustainability and social-impact consultant Alice Mann argued on her blog that Patagonia deserves to be in its own category.
“One reason Patagonia stands alone,“ she wrote, “particularly among first-generation social-impact companies, is Yvon Chouinard’s fierce commitment to staying independent. Yvon and his wife own 100 percent of Patagonia’s shares. Many first-generation social-impact companies, once peer companies of Patagonia, have since sold to multinational corporations.“