When thinking about corporate sustainability reports and social performance, apparel always seems to come into the minds of many people and for many reason. There are always discussions about sweatshops and the treatment of labor as well the far-reaching impact apparel has on the environment, from water and energy usage to chemical release. Moreover, it is difficult to discern if the issues are relevant to the clothing a consumer is considering purchasing and therefore the issue of transparence is also very relevant when it comes to the social performance of an apparel organization. Patagonia and North Face are two outdoor apparel companies that have many similarities in terms of views and importance of corporate involvement in society, however the two organization social performance are vastly different. While the organization emphasize many of same values, each has their own strength, weakness, and social performance scores.
Both Patagonia and North Face compete in the same outdoors apparel industry. Being that both firms are in this industry each places a very high emphasis on their commitment to the environment and their commitment to societal values. There are many values both organizations emphasize. The environment is one issue each organization have valued and stressed. Patagonia and North Face both use sustainable fibers, such as organic cotton and recycled polyester, while also innovating and creating new fibers and processes to reduce the impact of their
Primark meets the corporate social responsibility to environment at large. Firstly, Primark establishes a partnership with CottonConnect aiming to improve the farming technique that growing cotton with fewer resources. In this way, the farmers can earn more money for themselves. Secondly, in order to promote a green production
Robert Swan once said “the greatest threat to our planet is the belief that someone else will save it.” Two companies that understand this concept are Patagonia and Nike. How they address these issues regarding sustainable business practice vary, however. Both have made it their mission to deliver excellence and make the best quality products within their industries, Patagonia focussing more on outdoor active wear, while Nike is more sports oriented. Part of this process has been developing products from sustainable sources. Patagonia, for example, actively took a stand against chemical intensive cotton in 1994, and has since switched to less harmful means of organic cotton within all their cotton-based products. They are even going the extra
Patagonia determines how its possible ventures will be both business practical and environmentally friendly by turning their company into a eco friendly environment. It clearly states this in their mission statement. “ Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis” Their main focus is going “green” to help the environment but also using business as a
TenTree has created a product with the positioning to give customers clothing options that are environmentally and socially responsible. They promise to plant ten trees for every item purchased and only use factories that are approved by WRAP. (TenTree, n.d.) They also have a large selection of t-shirts, hoodies, sweaters, tanks, hats, and toques, in a variety of different colours and sizes. (TenTree, n.d.) Satisfying the customer wants for a wide variety of socially and environmentally responsible clothing has created functional-instrumental value for their customers.
Lululemon is the third leading speciality sports apparel store, behind Nike and Adidas (appendix 1), retailing for women and a small range of men. They have capitalised on the growing trend of fashionable gym and street clothes (Ibisworld, 2016). Their vision is “Elevating the world from mediocrity to greatness”, through their 350 stores and online store shipping to 80 countries (Lululemon, 2016). A SWOT analysis in appendix 2 reveals the sustainable niche of Lululemon’s market, while below demographics, social trends and environment macro-environmental factors are discussed due to their relevance to Lululemon as a modern brand, the others are outlined in appendix 3.
Nordstrom has continued to improve their dedication to the environment, steps such as: reducing carbon dioxide released into the air, using organic cottons and investing time and money into the discovery of more sustainable fabric clarification. Although many of these steps may seem like obvious choices so many large companies are still struggling to make the leap nordstrom has shown in these areas. The hunt for more sustainable fabrics is in hopes to lower the unlawfully logged forests and continue to encourage other brands, which they outsource from to be aware of how and where their fabric materials are made. The ethical decision to improve their own environmental practices and inspire other brands to do the same shows they care about the recent changes in society and are willing to form to these
Both Patagonia and The North Face focus a lot of their attention on being environmentally friendly. Unlike many businesses, Patagonia and The North Face use organic materials, treat employees
Patagonia’s value proposition is based on embedding environmental sustainability in every business decision it makes. Its core strategy is differentiation by focusing on durability and quality of products whilst minimising its carbon footprint and use of synthetic ingredients (what). The business model revolves around developing innovative technologies and influencing competitors and suppliers alike to adopt environmentally-friendly processes (how). Commitment to these causes while maintaining quality has allowed it to develop a loyal customer base amongst high income groups and athletes (who) and significantly increase customer’s willingness to pay.
“Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” Patagonia's unique mission statement shows what they stand for and proves to competitors that their products will always be high quality without harm to the environment which is very important to the target market that the brand sells to. With a mission statement this bold consumers know that they are buying products from a company that cares which is rare to find because how competitive the market is. What propelled Patagonia into the limelight as a premier outdoor clothing brand was its high quality and sustainably produced line of products. Patagonia was the leading company to pave the way in waste reduction. Patagonia's iconic design and high tech materials allowed for the brand to gain significant market share amongst consumers.
The most serious threat to The North Face is Patagonia, as both companies target the more serious outdoor adventurers. But of the two outdoor apparel companies, The North Face is trendier and appeals to a younger market, particularly college students, and products are available in thousands of retail stores nationwide. Therefore, The North Face appeals to more of a mass-market. In comparison, Patagonia has a distribution strategy that requires the operation of a limited number of retail locations in areas where demand is not as popular for outdoor apparel. Moreover, Patagonia continues to target the same market and do not aspire to become a trendy brand that is similar to The North Face.
In 1993, Patagonia was the first company to make plastic soda bottles into fleece, as well as other materials. As many other brands are following in their footsteps, this new technology is a new way to make an Eco-friendly material and that is durable and well made. Patagonia has changed how people view recycling. They are focused on reducing the amount of pollution in the environment. They needed 20,000 barrels of oil to make raw materials, but as they started recycling plastic bottles there was no need for that. Now, there is space in the landfills by keeping millions of bottles out, which eliminates harmful air emissions, making the environment a better place. While Patagonia strives for environmental improvements and to make their products, sustainable, there are now expanding to other fabrics. It has been over
Patagonia strives to provide quality clothing and outdoor equipment while staying as environmentally friendly as possible. A hiking boot, for example, would need to fit strict requirements. The boot would need to be durable, comfortable, stylish, and made from environmentally friendly products. You also need to determine if there is a large enough market for the product. This would provide the means necessary to determine if the product has the highest chance of being successful. Given these strict requirements, one way to help keep the costs down is to use recycled material from older products that costumers turn in, therefore saving resources and money.
Although their unconventional business approach can in no way be exactly measured to determine the effectiveness of it, the company succeeds at making the experience of purchasing one of their products special because the consumer knows they are getting a high quality product that was made in a environmentally friendly process. This unique positioning that Patagonia has in the outdoor apparel market, allows it to sell its products two to three times the average price of their competitors like Uniqlo. What differentiates Patagonia from its main competitors, The North Face Company and Columbia Sportswear, is that Patagonia has found and connected with a niche market that wants not only a high quality product but also a product that was made in an environmentally sustainable
A key issue facing management was balancing the company’s desire for environmentalism with its existence as a for-profit business. The idea of running a for-profit business implies operating at the lowest cost, growing as rapidly as financially feasible, and maximizing returns to financial stockholders ( I think it should be stockholder since it is financial return). A commitment to the environment can raise costs and hurt margins because environmentally-friendly policies are not the most financially savvy. This issue is important because Patagonia’s entire brand and
There are a large amount of social and environmental problems within the global apparel industry.