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Strategies adopted by companies

Shivone Smith

Southern New Hampshire University

Professor Jarrett Walton

MBA 500

12/1/2022

Therefore, you will review Patagonia's activism and corporate social responsibility initiatives.

Moreover, identify potential critical financial performance indicators (KPIs).

Patagonia is a clothing brand that takes pride in its high-quality, ecologically friendly apparel line and commitment to the well-being of its employees. Despite the inability to see financial reports, several key performance indicators (KPI) are provided on their corporate social responsibility page. They acknowledge on their website that while they conduct research, design, and testing for their equipment, they do not produce anything. "Companies that have the technical expertise and equipment to make fabrics and do the actual cutting and stitching" are hired to handle this operation. Patagonia seeks new factories consistent with its CSR initiatives, mission, vision, and values, ensuring that the factory is sustainable and its employees are adequately trained, fairly treated, and paid a living wage. Because a living wage is not guaranteed, Patagonia will pay these employees extra money to make a difference (Sarvaiya et al., 2018). Patagonia downsized its manufacturing by half in the early 2000s, resulting in savings directed toward various projects. They are investing in their employees by paying wages and encouraging up to two months of volunteer time. This reduces the cost of hiring new employees. They continue to prioritize collaboration with factories that share their concern for the environment and employee safety. Recognizing that regenerative agriculture is less harmful to the environment, Patagonia collaborates with cotton farmers to convert to holistic farming, consistent with their commitment to animal welfare and social justice. Patagonia invests in the environment, which they have financially supported for the past 30 years, by donating 1% of profits or 10% of pre-tax income to environmental groups, whichever is greater. Patagonia bases all it does on environmental protection. Although their products are not cheap, the fact that they are environmentally friendly minimizes the possibility that they will wind up in the garbage. If they focus on the environment, their CSR strategy works. They have been in business and taking risks for over 30 years. Even without a financial statement, it is clear that they are making a net profit, both monetarily and in terms of the Triple Bottom Line. They invest in manufacturing that reflects their environmental commitment and strive for a livable income. Even if the company's profit margins occasionally fall, Patagonia is not going away anytime soon.

Analyzing the health and beauty company that I work for

Common financial KPIs and how to incorporate strategies to reach their own KPIs

The KPI I am interpreting from this is an investment. When sponsoring research for initiatives, products, media concepts, and loyalty programs, Patagonia invests in the world's future in the same way that Walmart and our health and beauty companies do. Although Patagonia's products are, by definition, expensive, and their brand is well-known worldwide, being sustainable has a long-term positive impact on the environment. "We're in the business of saving our home planet," they say. Our health and beauty company can adopt Patagonia's environmental CSR by considering our products and the sustainability of our packaging. We can support their environmental goals by investing in our people, particularly our employees. Customers will be more likely to choose our products over our competitors if we demonstrate that we appreciate and care about the environment (Gond et al., 2018). We must keep an eye on the bottom line to ensure that we can continue to produce a high-quality product while remaining profitable. Relationships will be formed as we work inside our communities and alongside our neighbours to give back, and our CSR goal will become a reality.

How activism leads to better brand image

Patagonia's CSR approach prioritizes the environment. It entails investing in the environment, employee safety and benefits, and high-quality, eco-friendly materials. They take part in community action to support environmental initiatives. They work to reduce their carbon footprint by donating a portion of their profits to environmental organizations researching ways to advance environmental sustainability.

References

Gond, J. P., Cabantous, L., & Krikorian, F. (2018). How do things become strategic?‘ Strategifying'corporate social responsibility.  Strategic Organization,  16(3), 241-272.

Sarvaiya, H., Eweje, G., & Arrowsmith, J. (2018). The roles of HRM in CSR: strategic partnership or operational support?  Journal of Business Ethics,  153(3), 825–837.