Patagonia - Legally Bound to its Purpose

Finally, a brand, other than Apple, we can express immense admiration for, or as my flatmate tweeted this week, "open-mouth kiss" - hello Patagonia!

Last week, I wrote about its Common Threads initiative, where Patagonia clearly establishes its role/purpose within the global community - "to build useful things that last, to repair what breaks and recycle what comes of its useful life"- then asks its customers to do the same to help accomplish its purpose.


Now, Patagonia has asked the government to help it truly live by its purpose without boundaries, becoming California's first Benefit Corporation. This gives Patagonia's directors legal protection to consider social and environmental benefits over financial returns!


"This new legal status was designed to embed goals into companies’ missions that go beyond profitability"


For too long, companies have had to sacrifice their brand purpose - the big hairy audacious goal they set out to accomplish upon inception - to meet the short-term demands of shareholders when going public.  I'm ecstatic to see a brand who wasn't afraid to challenge the rules and ask for support from the government to ensure its ability to live up to its brand purpose everyday.


Often, shareholders are so concerned with short-term returns, that they forget to take a long-view perspective of the brand.  By Patagonia actively, consistently and, now, legally living up to its brand everyday, helping reduce unnecessary purchases and creating products that will live 'forever', it establishes immense trust and advocacy for the brand, which creates demand and sustained or even increased value for itself in the long-term.

It's a step in the right direction, having brands ask for and receiving support, to create, and be truly caring, responsible and sustainable brands.  I look forward to seeing more brands become Benefit Corporations or finding other creative ways to satisfy their big hairy audacious dreams!  The key is not to be afraid to imagine what isn't possible today and ask for it, so it can be a reality tomorrow!

Note: Image found here