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Written Assignment Unit 3

Patagonia is a leading outdoor clothing company known for its commitment to environmental sustainability and social responsibility since its founding in 1973. The company faces challenges related to environmental impact and labor practices but addresses these through sustainable materials, fair labor, and consumer engagement initiatives like the 'Worn Wear' program. Patagonia's advocacy for environmental issues and ethical practices not only enhances its reputation but also contributes to long-term financial success and customer loyalty.

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10 views4 pages

Written Assignment Unit 3

Patagonia is a leading outdoor clothing company known for its commitment to environmental sustainability and social responsibility since its founding in 1973. The company faces challenges related to environmental impact and labor practices but addresses these through sustainable materials, fair labor, and consumer engagement initiatives like the 'Worn Wear' program. Patagonia's advocacy for environmental issues and ethical practices not only enhances its reputation but also contributes to long-term financial success and customer loyalty.

Uploaded by

nazilaramzi25
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Patagonia: A Model for Long-Term Wealth Creation

BUS 3306-01 Business and Society - AY2025-T4

Written Assignment Unit 3

Instructor: Usha Palaniswamy

April 30, 2025


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Patagonia: A Model for Long-Term Wealth Creation

Nature of the Business

One prominent example of a company successfully embedding long-term wealth creation

through the preservation and expansion of human, social, and natural capital is Patagonia. This

well-known outdoor clothing and gear company specializes in products for activities such as

climbing, skiing, and surfing. Founded in 1973, Patagonia is recognized for its commitment to

environmental sustainability and social responsibility, making it a leader in corporate

responsibility within the apparel industry.

Long-Term Challenges

Patagonia faces significant challenges related to environmental degradation, resource

scarcity, and labor practices. The apparel industry is notorious for its substantial environmental

impact, including water pollution and high carbon emissions. Additionally, ensuring fair labor

practices across a global supply chain is a complex issue. As consumer awareness of these

challenges grows, companies like Patagonia must continuously adapt and innovate to maintain

their ethical standards and reputation.

Embedding Long-Term Wealth Creation

Through several key strategies, Patagonia has effectively embedded long-term wealth

creation into its operations. First, the company is dedicated to using sustainable materials and

practices. It uses organic cotton, recycled polyester, and other eco-friendly materials in its

products. This commitment helps preserve natural capital by reducing the environmental impact

of production. Furthermore, Patagonia supports initiatives to protect natural habitats by donating

1% of sales to environmental organizations through its "1% for the Planet" program. This not
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only enhances the company's image but also attracts environmentally conscious consumers

(Patagonia, 2023).

Another critical aspect of Patagonia's approach is its emphasis on transparency and fair

labor practices. The company actively works to ensure safe working conditions and fair wages

for all workers in its supply chain. By investing in social capital, Patagonia improves the lives of

workers, which builds trust with consumers who value ethical practices. This commitment

fosters customer loyalty and can lead to increased sales over time. Additionally, Patagonia

encourages customers to repair their gear instead of discarding it. The company offers repair

services and has launched the "Worn Wear" program, which promotes the resale of used

clothing. This initiative not only reduces waste but also fosters a culture of sustainability among

consumers, extending the life cycle of products and encouraging responsible consumption

(Patagonia, 2023).

Lastly, Patagonia takes an active role in advocating for environmental issues. The

company engages in campaigns to protect public lands and combat climate change. By aligning

its brand with social and environmental causes, Patagonia enhances its reputation and

strengthens customer loyalty. This advocacy not only helps the planet but also positions

Patagonia as a leader in the industry, contributing to long-term financial success (Patagonia,

2023).

In conclusion, Patagonia exemplifies how a company can effectively integrate long-term

wealth creation into its business model. Through its commitment to environmental sustainability,

ethical labor practices, and consumer engagement, Patagonia drives profitability and contributes

positively to society and the planet. This comprehensive approach ensures that Patagonia

remains a resilient and respected leader in the outdoor apparel industry.


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Word Count: 487

References

Patagonia. (2023). Our environmental & social initiatives. Retrieved from

https://www.patagonia.com/our-footprint/

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