The greatest challenge for most companies is the raw material stage, I believe enough noise has been made about 'child labour, bad working conditions especially in factories, employee compensation to the point that most companies that are focused on sustainability have managed to 'some what' manage these challenges.
The responsible sourcing of raw materials is still very much something that companies are struggling with, if you look at the current case of Apple inc where the gold used in their electronics is sourced from DR Congo and the conditions are appalling and this has caused a media frenzy.
Patagonia has definitely created value for the environment, customers and society.
First of all, I would like to thank Professor Sugai for a guest speaker last week. Mr. Ohara gave us a lot of information and interesting details of his own experience in Patagonia. Also it was a nice training for self -presentation skills for current student. It is always more interesting to listen the case from the first person rather than self-reading.
ReplyDeleteAfter the guest speaker the sense that Patagonia is the most responsible company (not sustainable) all over the world. During the presentation the name of Yvon Chouinard was mentioned thousands of times. Obviously he is the spiritual leader, like Steve Jobs in Apple.
My concerns are that such attitude to environmental issues is closely connected with one person. The fact that Patagonia is almost a private business (according to the case he and his wife are the only shareholders) allow the company to make the specific decisions. These decisions sometimes a not very good for company profitability.
The main treat for the company, and Mr Ohara confirmed it during class, the age of Mr. Chouinard. Even though his children are the Patagonia employees, their attitude to environmental question could be different. With new shareholders the stress could be moved to profit. And even current executives often do not agree with owner’s decisions.
Is it really possible to pursue a policy “environment the first – profit the second” with diversified shareholders. How can the company safe the current spirit in next century?