TEAM 5
Abdulrahman Daqqa
Tiago Silva
Mohammed Jalal Sulaiman
Prashant Maiti
Yashashree Kulkarni
Bisher Yousfi
Corporate Social Responsibility– Hult Business School - Dubai
Patagonia

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1. Introduction
2. The Initiatives
3. The Good
4. The Bad
5. The Ugly
6. Recommendation
Agenda

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Overview
Introduction Initiative Good Bad
Grew out of a small company
that made tools for climbers
Produces sustainable sport
clothing and gear for men,
women, kids, and babies
Founded by Yvon Chouinard
in 1972
Based in Ventura, California
Ugly Recommendation
Part of several environmental
movements and it’s a
Certified B Corp
Employs around 2,000 people

11 Fair Trade Certified Styles14
200 Fair Trade certified Styles16
300 Fair Trade certified Styles (Forecast)17
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Fair Trade
Source: Cara Chacon, Senior director, Social and Enviromental Responsibility
!
!
!
Introduction Initiative Good Bad Ugly Recommendation

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• Privately held company
• Initial purpose: Financing of founder’s outdoor
hobbies
• 14% of CAGR Revenue Growth for the past 8 Years
• 2015 Revenues of $750M
• 1% Of Revenues are donated to conserve and
restore nature
Patagonia
Introduction Initiative Good Bad Ugly Recommendation

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Environmental + Social initiatives
- With the support of Patagonia, people at Pratibha Syntex could get $76,000
additional earning in 20151 (this is equal to 9 days’ wages per worker)
Future State
The company is working to add new fair trades certificates in Thailand, Vietnam,
Colombia and Mexico
Current State
- The company grew Fair Trade offering from 33 to 192 in
20151
- First Fair Trade was with Pratibha Syntex “a registered
society of smallholder cotton farmers in district Khargone
the state of Madhya Pradesh in India” [fairtradenapp.org]
Fair Trades
Introduction Initiative Good Bad Ugly Recommendation

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Environmental + Social initiatives
§ The Taiwan factory was found relying on labor brokers to
hire workers (found during social responsibility audits in
2011)
§ Some workers might pay up to $7,000 to labor brokers
who charge migrant workers in Asian countries to place
them in factory work in Taiwan
The challenge of the Labor Brokers in Taiwan
Actions Taken by Patagonia
ü Partnered with Verité—an NGO dedicated to ensure workers worldwide work
safely and under fair and legal conditions
ü Developed new changes in the company supply chain, compensate current
workers
ü New standards, pre-hiring interactions, review labor contracts and wages and
review passport retentions and labor working conditions
Introduction Initiative Good Bad Ugly Recommendation

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Environmental + Social initiatives
The Sustainable Apparel
Coalition is the apparel,
footwear and home
textile industry’s
foremost alliance for
sustainable production.
Patagonia & Walmart
joined forces to create
universal approach to
measuring sustainability
performance for
apparel, textile and
footwear.
Introduction Initiative Good Bad Ugly Recommendation

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Environmental + Social initiatives
Introducing the Traceable Down Standard
§ Inhuman live plucking is widely used to collect
down from birds
§ Birds are exposed to this process every 6-7 weeks
before they get slaughtered (or die from the
trauma of the plucking itself)
Actions Taken by Patagonia
ü Patagonia developed and implemented an animal-
welfare program through its supply chain.
ü In 2014, the company confirmed that all down products contain only 100%
Traceable Down that can trace the to ensure they never force-fed or live-plucked
ü Worked with NSF to adopt the company standard globally
Introduction Initiative Good Bad Ugly Recommendation

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B Corp: Using Business to Solve Social and Environmental Problems
Environmental + Social initiatives
§ In 2014, the company completed the required B Impact assessment
§ In 2011, the company scored 116 (minimum score for B Corp certification is 80 out of 200)
Governance:
The company board includes independent members to present community and environment interest
Workers:
Part-time staff à Extend health scheme
Full-time staff à 80% health insurance coverage
Community:
100% à suppliers are disclosed on the company website
>40% Management à women or ethnic minorities
>25% Employees à time off for community service
1% Sales à Environmental NGOs donation
Environment
75% Materials à environmentally preferred (organic, recycled, etc.)
5% Energy à generated onsite
Introduction Initiative Good Bad Ugly Recommendation

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$6.2M donated 2014
to fund environmental work
741 Environmental groups
Received the aid in 2014
$20M environmentally and
socially responsible companies
through venture capital fund
$70M donations since 1985
192 Fair Trade Certified™
Styles - 2015
164k pounds of prod. recycled
and upcycled since 2004
84% of water saved compared
To regular denim
100% taken
back for recycling
30k products repaired at
Service Center
$100M 1% for the Planet® has
donated to nonprofit
environmental groups
The Good
Introduction Initiative Good Bad Ugly Recommendation

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There is no information if Patagonia uses renewable
energy at any stage of its supply chain, if the brand has
measured its greenhouse gas emissions for its supply
chain, and the scope of its greenhouse gas emission
measurements.
After six consecutive years, Patagonia have fallen off
the 2013 World’s Most Ethical Companies
list (Ethisphere)
The Bad
Introduction Initiative Good Bad Ugly Recommendation

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Audits of Patagonia’s raw-materials suppliers in 2012
revealed that labor brokers charged migrant workers
from Asian countries up to $7,000 to get a job in
Taiwanese fabric mills that supply Patagonia.
Hazardous POFA found in outdoor clothes as per
Greenpeace hazardous chemicals reports
The Bad
Introduction Initiative Good Bad Ugly Recommendation

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In August 2015, PETA released a
video taken at Patagonia’s wool
supplier, Ovis 21, in Argentina. The
video showed cruel practices being
carried out on sheep at ranches
within the Ovis 21 network.
The Ugly
Introduction Initiative Good Bad Ugly Recommendation

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- Boost revenues in order to maximize the profit
- Establish local factories to create more shared values
for the local community and save environment from
shipping economical and environmental costs
- Increase checks are required on supply chain and
involve 3rd part inspection for routine audits
- Spend more on the R&D to find alternatives for the
hazardous materials used in outdoor clothing
Recommendation
Introduction Initiative Good Bad RecommendationUgly

THANK YOU

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References
1. http://www.wsj.com/articles/patagonias-balancing-act-chasing-mass-market-appeal-
while-doing-no-harm-1471426200
2. http://www.environmentalleader.com/2013/03/07/ge-starbucks-make-most-ethical-
list-patagonia-best-buy-drop-off/#ixzz4NpiCK4Nw
3. http://www.patagonia.com/corporate-responsibility-history.html
4. https://www.greenbiz.com/news/2012/11/16/amid-criticism-patagonia-works-rid-
outerwear-pfc-chemicals