Patagonia's Sustainable and Responsible Business Practice
For this assignment you will develop an individual case study that draws upon the various elements of theory from the module. The case study context should be an organisation of your choice; this might be an organisation/Industry you have previously worked in, the case organisation from the guest lecture or an organisation/Industry you are interested in. Your organisation should be approved by your tutor, and we recommend that you work on your assignment throughout the module. You will have the opportunity to receive formative feedback throughout the module on the work you develop, on a weekly basis.
Critically consider the position of your organisation/Industry in relation to sustainable and responsible business practice, in order to do this you will need to (1) critically evaluate and justify the need for responsible business; (2) explain the logic and underpinning theory associated with ethical decision making (normative, behavioural and management ethics), including the organisations approach to ethics and sustainability; and (3) explain how the various stakeholders are engaged with and impacted by this position. You should use real-world examples of current practice (including scandals or examples of innovative practice) to illustrate the position of your organisation. You may find it useful to compare and contrast the position of your organisation to others who operate in a similar field. Your task is to illustrate your understanding and appreciation of the ethical theory and how this is applied in practice to further the agenda of responsible and sustainable business behaviour and to consider recommendations to develop good practice within your selected organisation. Your recommendations should be in some depth rather than surface level solutions such as increased recycling or donating more money to charity etc.
Example Structure and Word Count
- 1. Context and Scenario (Guidance: 700 words)
Provide an overview of your chosen organisation and their approach to responsible business. Critically reflect responsible and ethical business approaches in line with relevant theory.
- 2. Ethical Underpinning (Guidance 700 words)
Critically evaluate the ethical, social, and environmental impacts of your organisation and consider how the organisation might become more ethical and sustainable. How might the organisation decide what kind of role it should take in contributing to the wider / macro environment? This should be underpinned with ethical theory and reasoning.
- 3. The Role of Stakeholders and Proposed Solution(s) (Guidance: 700 words)
Identify and evaluate the role of stakeholders in your strategy. What does the organisation expect from its stakeholders in its new responsible and ethical approach? To what extent is the organisation innovative relative to sustainability within its organisational context? You might include examples of past attempts by other organisations to become more ethical and sustainable (including those who have failed, the guest Lecture might be useful here). What steps might your organisation take in relation to various stakeholders to become a more sustainable and responsible business.
- 4. The Resolution (Guidance: 400 words)
Describe the issues linked to the situation you have identified. Reflect on this outcome and consider how your organisation might respond to these challenges in the future.
Word limit and Submission Information
The word limit is 2,500 words. You must stick to the word limit plus or minus 10%. If you don't write enough words that is up to you. If you write too many we will disregard any over the limit, (as that is likely to be your conclusion it could affect your grade considerably). Turnitin tells us how many words there are. The bibliography and reference list don't count, but everything else does.
Submit your essay to the electronic submission point on blackboard and to Turnitin. Links for both submission points are on Blackboard under the Assessment tab. Versions submitted to both point MUST be identical.
ANY PIECE OF WORK THAT IS NOT SUBMITTED THROUGH BOTH THE ELECTRONIC SUBMISSION POINT AND TURNITIN BY THE DEADLINE WILL NOT BE MARKED I.E. IT WILL BE TREATED AS A NON-SUBMISSION.
Response and Ethical Business Practice
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Response and Ethical Business Practice
SECTION A
Introduction
Patagonia is a company that was established in 1972 by Yvon Chouinard. The business is known for its green business model. Throughout the years, the business has strived to develop the best products, cause no harm to the environment, and use its business practices to inspire and develop solutions to the environmental crisis the globe is currently experiencing. The product line of the business is made up of four categories. They are Technical Outwear, Hard goods, technical knits, and sportswear. It is important to note that it has not been a smooth road for the organization. In 2010 when the company was planning to launch its unique environmental initiative called the product lifecycle initiative, some leaders were not willing to cooperate since they believed this approach could destroy the profitability of the business. This was a challenge because the company would require significant investment and construction of repair centers. At the same time, the company was supposed to balance its mission of solving the environmental crisis and maintaining profitability and competitive advantage in the market. This case study will examine the operational strategies of Patagonia, an enterprise that focuses on manufacturing and distributing outdoor apparel and equipment. Known for its dedication to ethical business practices and sustainability, Patagonia has played a significant role in promoting the sustainable business movement. The company has established a loyal customer base and earned recognition for its efforts to minimize its environmental impact by implementing a distinctive approach to conducting business. Through this case study, it will be possible to explore how Patagonia has effectively incorporated sustainability into its core values, marketing tactics, and operations.
Approaches to responsible business
Patagonia is a renowned clothing company in the United States specializing in outdoor apparel and accessories. Established in 1973 by Yvon Chouinard, the company is strongly committed to responsible business practices and sustainable manufacturing processes (Choi, 2014). Patagonia has been at the forefront of the sustainable fashion industry and has been recognized with numerous awards for its efforts to protect the environment (Choi, 2014). In this case study, we will analyze Patagonia's ethical and responsible business practices in light of relevant theories (Pogge, 1988).
Patagonia, a company with various initiatives to reduce its carbon footprint, has set ambitious goals for reducing greenhouse gas emissions (Crumbie, 2019). The company’s 'Footprint Chronicles program offers transparency about the environmental impact of its products and its attempts to minimize it (Laasch & Conaway, 2015). To reduce its carbon emissions, the company also invests in renewable energy sources like solar power (Wicks, 2010). Patagonia's commitment to social responsibility is demonstrated by its strict adherence to labour standards and promoting sustainable agriculture. The company ensures that all its suppliers follow fair labour standards, such as safe working conditions and human rights while sourcing materials from organic and regenerative farms (Laasch & Conaway, 2015; Laasch, 2021; PrettyLittleThing, 2022).
Relevant theory
Patagonia's commitment to responsible business practices aligns with various theories and frameworks that promote sustainability and ethical business operations. Patagonia adopts the triple-bottom-line philosophy, which takes into account the social, environmental, and financial dimensions of business practices (Duncan, 2020). This approach acknowledges that a firm's achievements are not solely determined by its financial outcomes but also by its influence on society and the natural environment (Lauren, 2019),( Wong, 2016).
Corporate social responsibility (CSR) is another relevant theory that Patagonia adheres to. Corporate Social Responsibility (CSR) denotes an organization's pledge to conduct its operations ethically and sustainably, considering its stakeholders' concerns (Kohlberg, & Hersh, 1977). Patagonia's commitment to fair labour practices, sustainable sourcing, and reducing its environmental impact exemplifies its adherence to CSR principles (McNeill, & Moore, 2015).
The cradle-to-cradle approach is another relevant theory that Patagonia implements in its operations (Dietz & O'Neill, 2013). This approach advocates for the concept that materials must be developed and utilized to enable them to be reused or recycled after their lifecycle (Porter, & Kramer, 2006). Patagonia's use of recycled materials in its products and its 'Worn Wear' program, which focuses on reducing waste, are examples of the cradle-to-cradle approach The (RSA, 2021).
Patagonia's ethical business practices are rooted in its mission statement, which seeks to "Create the best product, do no unnecessary harm, utilize business to inspire and implement environmental solutions." (Patagonia, n.d). Its operational techniques and merchandise show the firm's commitment to sustainability and social accountability. They use eco-friendly materials and methods, minimize waste, and promote fair labour practices. Furthermore, Patagonia participates actively in environmental advocacy and contributes 1% of its sales to environmental initiatives (Patagonia, n.d.).
Patagonia's responsible business approach aligns with the principles of sustainable business as defined by Kopnina & Blewitt (2018). Sustainable business involves using resources responsibly, reducing waste and pollution, promoting social justice and equality, and considering the long-term impact of business decisions on society and the environment. Patagonia's use of eco-friendly materials, sustainable manufacturing practices, and commitment to fair labour practices is consistent with these principles.
Patagonia's ethical business practices are based on a stakeholder theory perspective, as Wicks et al. (2010) described. This approach considers the interests of all stakeholders, not just shareholders, in business decision-making. At the same time, it is imperative to note that this approach provides a framework for evaluating different alternatives and selecting the best. Wicks et al (2010) state that stakeholders are required to understand the potential impact of business decisions before choosing the right direction (TOMS, 2022). Patagonia's commitment to fair labour practices and environmental activism demonstrates its concern for the well-being of its employees, customers, and the environment. Furthermore, their transparent reporting on their social and environmental impact reflects their dedication to accountability and ethical behaviour.
SECTION TWO
Introduction
Patagonia, a prominent outdoor clothing and gear company, is well-known for its ethical and sustainable business practices. However, in 2011, it was discovered that the company's organic cotton supplier in Turkey was sourcing non-organic cotton from other suppliers, which led to a scandal (Kopnina & Blewitt, 2018; Laasch & Conaway, 2015; Laasch, 2021; Wicks et al., 2010). This case study aims to evaluate the ethical, social, and environmental impact of this scandal and explain Patagonia's actions using virtues, deontological, and theological ethics. Additionally, the study provides recommendations on how the company can become more ethical and the role it should fulfil in society as a contribution.
Evaluation of Patagonia's Scandal
The scandal involving Patagonia's organic cotton supplier in Turkey had various ethical, social, and environmental impacts (Dietz & O’Neill, 2013; Porter & Kramer, 2011; Rambotti, 2015). Firstly, it undermined the company's reputation as a sustainable and ethical business. Patagonia's customers and stakeholders were disappointed and felt betrayed by the company's actions, which contradicted its environmental and social responsibility commitment. Secondly, the scandal hurt the environment as non-organic cotton farming involves the use of pesticides and chemicals that can harm ecosystems, wildlife, and human health. Finally, the scandal hurt the social and economic conditions of cotton farmers and workers who were exposed to hazardous chemicals, low wages, and poor working conditions.
Patagonia's Actions Using Virtues, Deontological, and Theological Ethics
Patagonia's ethical actions can be examined from different ethical perspectives, which include virtue, deontological, and theological ethics (Taylor, 2013; Laasch & Conaway, 2015; Wicks, 2010). Firstly, the company's actions align with virtue ethics, which underscores the importance of nurturing moral character traits like honesty, integrity, and responsibility. Patagonia exhibited these virtues by admitting to the scandal, offering apologies to its customers and stakeholders, and implementing corrective measures to avert a recurrence of the issue.
Secondly, Patagonia's conduct corresponds with deontological ethics, which emphasizes duty, rules, and moral obligations. Patagonia fulfilled its moral responsibility to customers and stakeholders by openly admitting to the scandal, taking necessary corrective steps, and upholding its commitment to environmental and social responsibility (Laasch, 2021).
The actions of Patagonia can be analyzed through theological ethics, which emphasizes the importance of religious and spiritual values in ethical decision-making. Patagonia's conviction in environmental and social accountability is founded on the notion that corporations have a moral obligation to safeguard the environment and advocate for social equity (McElvoy, 2019).
Recommendations for Patagonia to Become More Ethical
To become more ethical, Patagonia can adopt various practices such as conducting regular audits and inspections of its suppliers to ensure compliance with environmental and social standards, enhancing transparency and communication with its customers and stakeholders by disclosing more information about its suppliers, products, and sustainability practices, developing a comprehensive sustainability strategy that incorporates environmental, social, and economic objectives, increasing investments in renewable energy and eco-friendly technologies to reduce its carbon footprint, and collaborating with other stakeholders, including NGOs, governments, and suppliers, to promote sustainable and ethical practices in the fashion industry (Kazmin, 2018).
The Role of Patagonia in Society
Patagonia has a significant role to fulfil in society as a business, and it has a moral responsibility to protect the environment and promote social justice. The company can contribute to society by adopting sustainable and ethical practices, creating high-quality and durable products, and supporting local communities and small businesses (Laasch & Conaway, 2015; Wicks et al., 2010). Furthermore, Patagonia can promote environmental and social awareness among its customers and stakeholders by providing educational resources, sponsoring events, and advocating for policy changes that promote sustainability and social justice (Forbes, 2019), (Wicks, 2010). Furthermore, Patagonia can promote environmental and social awareness among its customers and stakeholders by providing educational resources, sponsoring events, and advocating for policy changes that promote sustainability and social justice (Forbes, 2019).
Over the past few years, the company has been growing tremendously because of making ethical decisions whereby the cost has been high in the short them but has favoured sustainability and conservation of the environment (H&M Group, 2022). While there is always a trade-off between a business making profits and being profitable, what is vital is the organization promotes and engages in activities that conform to its values, vision, and mission. At the same time, there is no certainty that certain initiatives and decisions the company will make will jeopa...