Companies that aren't known for high quality will have a much more difficult time employing the first tactic in particular. There are three tactics available to companies that focus on high quality goods. I believe it's possible that Patagonia's new campaign could actually lead to revenue growth for the apparel maker. The paradox remains.Ĭan Patagonia's 'buy less' campaign provide an essential tool to solve the paradox? And should your company pursue a similar strategy? While this can reduce the pressure shareholders place on companies to grow, it doesn't completely eliminate this pressure. There is a movement within the US to encourage corporations to adopt a new structure - the 'B corporation.' This designation is for profit-driven companies to signal to the market their intention to manage their business for the benefit of stakeholders, not just shareholders. Most for-profit companies (as opposed to for-profit partnerships) are classified as 'C corporations.' C corporations are legal entities with a fiduciary responsibility to maximise shareholder value. A similar but less draconian tactic would be a shift in corporation structure. A shift from for-profit to not-for-profit would remove the pressure to grow, thereby breaking the capitalism-environmentalism Gordian Knot. One tactic to be considered is changing your company's tax status.
That is, how can for-profit businesses grow while actively lobbying individuals to buy less? These companies might now be asking themselves how Patagonia's approach can resolve the conscious capitalist's paradox all for-profit businesses face. Nevertheless for-profit companies worldwide have long looked to Patagonia for managerial advice and insight.
As a family owned business with a very strong track record of environmental and social stewardship, the company is famous for putting sustainability ahead of profit. Those familiar with Patagonia's mission will conclude the company's campaign is both genuine and borderline heroic.
In addition consumers will now be able to resell their used Patagonia apparel on a new Used Clothing & Gear section on Patagonia's website. To put the idea into action, Patagonia is partnering with eBay to provide consumers a way to resell their used Patagonia apparel via the Common Threads Initiative site on eBay.
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