What effect does Patagonia’s culture have on organizational profit?
Patagonia is an outdoor apparel business based in Ventura, California. Its’ founder, Yvon Chouinard instilled in it a great sense of morals and created a work environment very different from other businesses; this would lead to profit.
Patagonia is based on sound morals and values which it holds firm to everyday. Patagonia is very conscious of the environment and its surroundings. While trying to make a profit, the small business attempts to lessen its effect on the environment, so there is a world for future generations to live in. One of the biggest parts of its culture is the idea of environmental tithing, or trying to reduce waste, use less natural resources, and minimize its’ effect on the environment. The best example of this concept is Patagonia promise to give 1% of its sales or 10% of its pretax revenue (whichever amount is larger) to environmentally conscious groups. Customers of Patagonia respect its’ efforts to help the environment and may buy more products, increasing profits. Also, Patagonia has made many loyal customers because of its’ morals, so that leads to steady profits over a lifetime.
Along with the sound morals and sense of social responsibility, Patagonia has a work environment like no other. Work at Patagonia is very relaxed. At lunch time, members of the business have volleyball matches. Patagonia has even held food fairs. Best of all, the employees can work without having to worry about their kids because Patagonia provides a child care service for its’ employees. This atmosphere, which is part of Patagonia’s culture, encourages employees to be creative and enjoy work. This idea leads to quality products. Customers that buy from Patagonia usually return for more products because of Patagonia’s passion for creating innovative, useful clothing. Once again, profit results from the customer loyalty that Patagonia attracts.