Yvon Chouinard of Patagonia on Profits With a Purpose

 Redefining Capitalism: How a Cannibal Capitalist Climbed to the Top of the Business World Yvon Chouinard is not your typical capitalist. The fact that Chouinard is the founder of Patagonia — one of the most widely admired companies in the world, due not only to its excellent outdoor clothing, but also to the ethical compass of the man at its helm — is also kind of a party trick of its own, because he has torn up all the old presumptions about how our economy might work best. He didn’t go into business to make money — he went in to solve problems. The project to create lasting climbing equipment gave way to a pioneering blueprint of how ethical entrepreneurship can thrive.

From Dirtbag Climber to Entrepreneurial Reluctant In the days before Patagonia became a billion-dollar brand, Chouinard was a blacksmith and a serious rock climber. Back in the 1950s and ’60s, he made his own climbing gear out of necessity. His wares, first peddled out of the boot of his car, were soon well known for their quality and innovation. But success brought dilemmas. The more gear he sold, the more environmental impact he saw. This paradox planted the seeds for a business model that would combine purpose with profits in the future.

The Creation of Patagonia and a Mission-Driven Ethos Founded in 1973, Patagonia wasn’t designed to maximize profit or to fuel growth. From its earliest days, the company planted a seed of environmental stewardship in its DNA. Chouinard’s philosophy was basic: make quality gear while doing as little as possible harm to the planet.

Just Do It: An environmental activist’s dream fulfilled Patagonia is one that has put its money where its mouth is when it comes to activism. In 1986, the company pledged to donate 10 percent of its profits to environmental causes — a commitment that has since evolved to 1 percent of sales or 10 percent of profits, whichever is greater. They have also embarked on some bold campaigns like “Don’t Buy This Jacket,” which encouraged consumers to think twice about consumption and repairing as opposed to replacing.

The Common Threads Initiative and Its Consequences

The Common Threads initiative, established in 2011, was a direct provocation to the profligate standards of the fashion industry. The programme encouraged costumers to minimize, mend, reuse and recycle what they wear. And Patagonia went so far as to provide repair services, thanks to the nation’s largest garment repair facility.

Advocating for Public Lands and Policy Change In 2017, Patagonia took the Trump administration to court over the shrinking of Bears Ears and Grand Staircase-Escalante National Monuments. It was a radical move for a corporation, and the company established itself as a major political player.