Patagonia - the Company That Benefits from Increasing Environmental Standards

Introduction

„Will our grandchildren see it?"

Probably everybody has already heard this question that arouse many times during the last few decades. What is the reason for that?

Our planet is in danger and every one of us is either part of the problem or part of the solution. We have to face with great population growth, the pollution of the environment, decreasing oil reserves, scarcity of food and water supplies, greenhouse effect and the depletion of the ozone layer.

Therefore the realisation of sustainable development is getting more and more important. We can define sustainable development as „development which meets the needs of the present

without compromising the ability of future generations to meet their own needs."

Three aspects of sustainable system exist:

Economic:

An economically sustainable system must be able to produce goods and services on a continuing basis, to maintain manageable levels of government and external debt, and to avoid extreme sectoral imbalances which damage agricultural or industrial production.

Environmental:

An environmentally sustainable system must maintain a stable resource base, avoiding over-exploitation of renewable resource systems or environmental sink functions, and depleting non-renewable resources only to the extent that investment is made in adequate substitutes. This includes maintenance of biodiversity, atmospheric stability, and other ecosystem functions not ordinarily classed as economic resources.

Social:

A socially sustainable system must achieve distributional equity, adequate provision of social services including health and education, gender equity, and political accountability and participation.

1. Patagonia

1.1. History

There is a company in America which tries to solve current environmental issues and contribute to sustainable development. That is called Patagonia which is an outdoor clothing firm with a strong commitment to environmental causes.

It was established by Yvon Chouinard and Tom Frost - climber and engineer- in 1965. At the beginning they sold only climbing tools. By 1970, Chouinard Equipment had become the largest supplier of climbing hardware in the U.S. During the nine years that Frost and Chouinard were partners, they redesigned and improved almost every climbing tool, to make them stronger, lighter, simpler, and more functional. They returned from every trip to the mountains with new ideas for improving existing tools. During the late sixties, men did not wear bright, colourful clothes, not outside. "Active sportswear" consisted of basic gray sweatshirts and pants. Patagonia became a pioneer with starting to produce colourful sportswear. The company began to see clothing as a way to help support the marginally profitable hardware business and they began to make more and more clothes.

In 1980 they came out with insulating long underwear made of polypropylene, a synthetic fibre that has a very low specific gravity and absorbs no water. It had been used in the manufacture of industrial commodities like marine ropes, which float. Its first adaptation to clothing was as a non-woven lining in disposable diapers.

They began to read about global warming, the cutting and burning of tropical forests, the rapid loss of groundwater and topsoil, acid rain, the ruin of rivers and creeks from silting-over dams and these reinforced what they saw during their climbing trips. At the same time, they slowly became aware that uphill battles fought by small, dedicated groups of people to save patches of habitat could yield significant results.

In 1988, they initiated their first national environmental campaign on behalf of an alternative master plan to deurbanize the Yosemite Valley. Each year since, they have undertaken a major education campaign on an environmental issue. They took an early position against globalization of trade where it means compromise of environmental and labour standards. They also began initial steps to reduce their own role as a corporate polluter: They have been using recycled-content paper for their catalogues since the mid-eighties. They worked with Malden Mills to develop recycled polyester for use in our Synchilla fleece.

1.2. About the company

The company's philosophy in one word is 'environmentalism': „We believe in using business to inspire solutions to the environmental crisis." They are working with processes that cause the least harm to the environment.

Patagonia is unique because they appear to be guided more by the desire to contribute to the greater social system than by the desire to maximize quarterly profit statements. Patagonia customers are dedicated to the company as well as to the environment. This combination adds to the maximization of the triple bottom line. Patagonia is a company that is truly focusing on people, planet, and the profits follow. Patagonia's direct-to-consumer and wholesale revenue have grown to a healthy $240 million, and the firm's employment has reached 1,200 worldwide.

Its competitors are: Columbia Sportswear Company, VF Outdoor Inc., Adidas AG, Nike and Timberland.

1.3. Products and selling

Patagonia sells its products through retail outlets and by mail order. The company is online since 1996. Their mail order service is quite popular nowadays because they offer:

- free shipping

- no sales tax

- authorized internet retailer

- hacker safe site

Patagonia produces sportswear for men, women and kids, footwear, travellers' gear, climbing tools etc. They always search for the best materials for their products and work with suppliers in order to develop outstanding new fabrics such as 'Synchilla fleece', 'Capilene' base liners or 'Regulator' insulation.

1.4. E- fibers

At Patagonia it is very important to use environmentally friendly materials such as organic cotton, hemp, wool, recycled polyester and recycled nylon. In case of organic cotton the peculiarity is the fact that the farmers who grow these materials don't use chemicals which can endanger people. Of course, these cottons are more expensive, but it's worth buying it instead of the traditional one for