If you’re wondering how social entrepreneurship works at a marquis company, try this New York Times interview with Patagonia’s recent CEO, Rose Marcario.

I’ve cited Patagonia many times as an example of a company that gets a lot of things right. Social responsibility is part of its DNA and has been from the very beginning. I was very intersted to learn about some of the initiatives under Marcario’s leadership, and particularly the open embrace of political activism.

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Found this list of 25 “Greenest Brands in America“—but frankly, I’m skeptical.

It’s based on reader votes. In any kind of reader popularity contest, the votes go to companies the most people are familiar with—or those whose marketers actively campaign and tell their fans to go vote for them.

Certainly, all these corporations have major environmental achievements; by now, every major corporation does. In fact, I attended a conference last month that focused on the profitability case for green action. Several of these 25 had speakers. I even moderated a panel that included Coca-Cola.

But this kind of survey pushes away the small companies with smaller followings but very green practices (Interface, Timberland, Patagonia, etc.) Only two such companies made the list: Tom’s of Maine and Ben & Jerry’s, and both are owned by much larger companies.

Patagonia's fish/mountain range-shaped logo
Patagonia’s fish/mountain range-shaped logo

I was also struck by three absences I would have expected to be there: Walmart, which has done more to green the supply chain and its own operations than any other player, but whose demographic doesn’t typically participate in sustainability surveys (and which has serious issues on other parts of the social entrepreneurship spectrum, especially on labor and supplier policies), Starbucks, which talks a great line to the right demographic, but whose practices don’t always mirror its rhetoric, and Whole Foods, whose entire mission intersects so well with green practices. Also kind of surprised to see Apple included. Either they’ve cleaned up their act or people give them more kudos than justified because their products are so cool and their fan base is so strong. To go from the Foxconn scandal to being named on a Top 25 list for green practices in just over two years is quite remarkable.

Even in surveys based on research, what you measure influences your conclusions. For example, Monsanto often wins data-driven corporate responsibility awards (and loves to brag about them), yet to many food activists, its policies are anything but responsible; they would call this award greenwashing.

 

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As someone who is decidedly NOT a fan of the annual Black Friday shopping orgy—and who participates instead in celebrating Buy Nothing Day (like Black Friday, always on the day after US Thanksgiving), I just love this!

Patagonia had pledged to donate all of its worldwide online and offline revenues on Black Friday to environmental causes.

Patagonia's fish/mountain range-shaped logo
Patagonia’s fish/mountain range-shaped logo

Here’s what happened, as reported by ABC News:

The outdoor clothing maker previously announced it would donate 100 percent of its global retail and online sales on Black Friday. It says it expected to reach $2 million in sales, but instead generated five times more. Patagonia says the fundraiser “attracted thousands who have never purchased anything from Patagonia before.”

Mind you, that’s not the profits from its $10 million in sales. It’s the whole amount, the gross revenue. Nothing set aside for product costs, operating costs, or anything else. I hope this generates many loyal new customers and lifelong fans. May the company’s generosity be a source of continued abundance, and maybe next year they can repeat and do even better.

All I can say is BRAVO and WOW!

Personally, I’ve been a fan of Patagonia for decades. I even profile the company in my latest book, Guerrilla Marketing to Heal the World. I didn’t happen to hear about this ahead, but might have actually moved from participating in Buy Nothing Day to making an online Black Friday purchase to support the environment. That would not have felt like the crass commercialism that seems to fill every moment of airspace in November and December, and feels especially extreme on Black Friday.

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On a LinkedIn discussion board, someone asked, “So, why has bettering the world become a mantra for a new generation of entrepreneurs?”

This sparked a very lively discussion, mixing the cynics and the optimists.

You can view this discussion here (you might have to join the group first).

My first comment was quick and straightforward, discussing my new work at Business For a Better World:

I’m 57 years old, been in business since 1981, and my business has *always* been about fostering a better world. This year, I took it further, beginning a campaign to show business how solving hunger, poverty, war, climate catastrophe, etc. is not only the right thing to do, but can be highly profitable (and we actually already have a lot of the technology to make it possible).

But as others responded, I felt a need to go deeper, and I want to share my responses to two of them with you:

Tim asked, “…If these entrepreneurs are so hot on giving to humanity, why not put their technologies in the public domain? There’s a topic for debate: Which is the better outcome, the Gates Foundation or Wikipedia?…”

Tim  – great question! The Gates example has always interested me, in that it follows the pattern of 100-150 years ago, when predatory ubercapitalists like Carnegie and Rockefeller began to seek out a higher purpose later in life and became uberphilanthropists–yes, some of Microsoft’s practices were quite predatory under Gates’ leadership. I can’t think of an equally prominent example in the years between the “Robber Barons” and Gates. (I also think Melinda may have had a lot to do with Gates finding HIS higher purpose–but he has fully embraced it and discovered it provides meaning in his life.) Most towns in my area of New England are still using little public libraries built with Carnegie money.

Warren Buffett is another very interesting example, but his choices and motivations, I suspect, were very different. Buffett never seemed to care personally about accumulating wealth to “better” his own life. He still lives in the simple ranch house he bought in the 1950s. And as far as I know, Berkshire Hathaway under his leadership was not a predatory company. It didn’t shock me when he gave away most of is fortune–to the Gates Foundation (which kind of brings this discussion full-circle).

But I propose that it is possible to be socially conscious from the get-go AND do quite well financially, and that getting wealthy is not a sin. Prominent examples include ice cream superstars Ben Cohen and Jerry Silverman, Yvon Chouinard of Patagonia, Anita Roddick of The Body Shop, and many others. I suspect the Chicken Soup guys (Jack Canfield and Mark Victor Hansen) are in this category; they do not shy away from the trappings of wealth–but they also find many ways to use their wealth to better the world. Jack I know for sure started from very humble beginnings; I have no clue about Mark’s early years, nor can I quickly find anything in public sources.

Jennifer commented, “…The world is in crisis – how do we milk it for all it has now people are focusing on the bad guys that have put the world in crisis. ‘We make the world seem like we care’ – new market. But hang on – ‘we kind of do care – well some of us anyway’ – but hang on ‘the global village concept doesn’t seem to be working’ – Ok; so now what?

Let’s make the world betterment program a thing for entrepreneurs – get rich while you increase people hopes even though those hopes are false…”

Jennifer  – Yours is one of several cynical posts in this discussion, but yours is ambivalent while the others are pretty much set in stone. So I choose to engage with you. I think we need to harness the cynicism and skepticism about business’ ulterior motives to create the action we want, despite our suspicion of their motives. For me, seeking personal wealth has never been as important as making the world better. My millionaire colleagues would laugh at my income. Let them laugh! As long as I can motivate them to make a difference.

I am personally very cynical about the ability to solve our biggest problems–hunger and poverty, war and violence, catastrophic climate change–based on the ways we’ve always done it. Too often, we’ve tried to motivate on guilt, fear, and shame–and it doesn’t work.

So I’m taking a leaf from the libertarians and ubercapitalists and attempting to motivate based on self-interest. If your goal is personal material wealth and I can show you how to realize that goal by seizing the opportunity to make money, and the work that governments and NGOs have failed to do gets done, then fine, take your fortune and go live in your big house. Think about a super-profit-driven company like Walmart: not exactly a tree-hugger hangout. But Walmart realized years ago that there was a lot of money to be made selling organic foods, low-watt lightbulbs and other green products–and a lot of money to be saved implementing green into its own operations, deeply. I have many issues with Walmart in other areas, but on the environment, I give them BIG props. Working from the profit motive, they have done more to spread green consciousness *and* green *practices* through society than I have in a lifetime of speaking and writing and consulting.

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Fascinating article by Marc Stoiber on how Patagonia’s latest environmental initiatives tells customers not to buy what they don’t need, and to make what they do buy last forever. And if it doesn’t last forever, Patagonia will take it back and recycle it for you.

It may be counter to common logic, but Stoiber thinks this will increase sales, and tells why. And I agree, for reasons I cite in my latest book, Guerrilla Marketing Goes Green—that caring and an envirnmental/soial justice agenda build fans and build the brand.

Patagonia is always a great company to watch and learn from, and this initiative does not surprise me.

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