L8: Patagonia

BEYOND value creation through product:

«inspiring and implementing solutions to the environmental crisis»

1. Environmental policies

2. Helping other firms: sharing technologies with competitors

1. Sharing best practices can help lower costs of adopting them

2. Lowers the uncertainty of the value of adopting them by serving as an example of their return

3. It can become costly for competitors to be left behind

• Product Lifecycle Initiative: exchange, return, repair

• lead by example (being profitable)

• Cause no unnecessary harm

• Share practices

• The move is intended to shield the company from «the pressure to create short-term gain at the expense of long-term vitality and responsibility» + create funding for environmentalism organizations

• TRUST/HOLDING control voting rights

• Foundation with philanthropic activities

• Legacy issues: family succession are problematic just as

  much as selling a company in terms of keeping alive the founders’ vision

“Organizations that run commercial operations with the goal of addressing a societal problem, thus adopting a social or environmental mission”

1. Instrumental Level: At this basic level, companies focus on meeting customer demands by providing high-quality products. The emphasis here is on utilizing the company's skills and competencies to satisfy customer needs, which is a direct and straightforward approach to CSR.

2. Transactional Level: This level goes a bit deeper. It involves companies acting with integrity and complying with both the legal and moral expectations of society. This means not just following laws but also doing what is ethically right. Companies at this level are also expected to operate transparently and treat all their stakeholders fairly.

3. Transformational Level: At the highest level, CSR is integrated into the very core of a company's business strategies and operations. Here, a company aims to go beyond just self-interest; it seeks to create value for the entire society and drive positive change. This level suggests that a company's actions should contribute to the overall well-being of society, indicating a more holistic and forward-thinking approach to CSR.