Patagonia: A Sustainable Outlook on Business
How can businesses make a difference in a world of decreasing resources? Patagonia is diligently
working toward finding an answer to that question. Patagonia is a privately held outdoor clothing
company based out of Ventura, California. Patagonia’s clothing has been developed and marketed
toward a variety of outdoor sports, travel, and everyday wear. The company has integrated core beliefs
and values into every product it produces and is known for its innovative designs, exceptional quality,
and environmental ingenuity. Its high integrity and commitment to the environment has placed
Patagonia on the Ethisphere Institute’s “World’s Most Ethical Companies” list for six consecutive years
since the list was first developed in 2007.
HISTORY OF PATAGONIA
Like many successful companies, Patagonia stems from one entrepreneur’s passion. In 1953 Yvon
Chouinard, founder of Patagonia, developed a passion for rock climbing. His passions brought him west
to the San Fernando Valley in California, where he became an expert at climbing and rappelling.
Unfortunately, his passion was limited by a lack of appropriate climbing gear. The only available climbing
gear were pitons, metal spikes that were driven into cracks or seams in rocks. These pitons were left in
the rock, meaning that a long climb could require hundreds of these tools.
Recognizing a need for better, more environmentally-friendly equipment, Chouinard began to make his
own reusable pitons that were stronger than what was currently on the market. Word of Chouinard’s
invention spread, and he began selling his pitons out of the back of his car for $1.50 each.
By 1965 Chouinard decided to partner with Tom Frost to create Chouinard Equipment. For nearly a
decade Chouinard and Frost made improvements on nearly every climbing tool. Soon Chouinard and his
wife Malinda were selling clothing as way to support the hardware business, but by 1972, the clothing
line had expanded to become its own business venture. The name of the line was Patagonia, and was
intended to reflect the mysticism of far off lands and adventurous places located not quite on the map.
Due both to financial hardships and a strong focus on the environment, the Chouinards new they
needed to make a change. The company switched to the more expensive organic cotton in 1996, a risky
business move considering it increased the firm’s supply costs. Conceivably, the more durable the
product, the less customers need to purchase from the company. However, the exact opposite
occurred: consumers were more willing to do business with Patagonia due to its environmental
consciousness and the fact that they could trust Patagonia’s products to last a long time.
Today Patagonia is debt-free, and is still willing to bend the rules. For instance, the firm—which
constantly remarks that it places the environment over profits—has embarked upon a “Buy Less”
campaign, among other initiatives that seem like they might discourage revenue growth. However,
revenue has more than doubled since 2008.
PATAGONIA’S PURPOSE AND CORE VALUES
When Patagonia was first developed, Yvon and Malinda agreed that the company would produce only
products of the highest quality and manufactured in the most responsible way. They selected the
following mission statement for the company: “Build the best product, cause no unnecessary harm, use
business to inspire and implement solutions to the environmental crisis.”
Patagonia strives to live out its mission statement every day. To make its mission into a reality,
Patagonia has adopted four core guiding principles for its operations: Quality, Integrity,
Environmentalism, and Not Bound by Convention.
For Patagonia, this means working with friends, hiring self-motivated, intelligent employees, and giving
them flexible time to enjoy surfing, climbing, and spending time with their families. Another important
value involves finding ways to be responsible by restoring or reusing, which has prompted the company
to open retail locations in old buildings that have been restored. After the company nearly went out of
business during the 1990s, Yvon Chouinard vowed to never again stray from the core values that he had
adopted to develop Patagonia. These values are strongly embedded into all company operations and
activities.
PATAGONIA’S LEADERSHIP AND MANAGEMENT STYLE
Yvon Chouinard set out to create a company that was proactive in its approach to how business is
conducted by embracing a progressive corporate culture. For instance, Patagonia believes that
employees should be out enjoying nature or tending their children when sick. Chouinard’s ideas have
made the company widely popular with employees and have steered the company toward innovation
and success on a global platform.
Although Yvon Chouinard owns Patagonia, he surrounds himself with talented leaders to help advance
the company’s goals. Patagonia CEO Casey Sheahan is strongly committed to Patagonia’s vision of
