In an increasingly polarized world, you can’t help but be interested in Patagonia’s ability to maintain its leading reputation.
As brands including Target, Bud Light and others are caught up reacting to backlash, Patagonia, a company that ideologically has center-left appeal, took the top spot in an Axios Harris poll for 2023.
How’d they do it?
Well, first it should be noted that, in general, consumers seem to be gravitating to brands that do what they say. In my humble opinion, Patagonia’s rock-solid reputation is part of this trend–and comes down to two things: clarity of values and consistent actions.
In a conversation with McKinsey last year, Patagonia founder Yvon Chouinard pretty much outlined the special sauce for HOW the company has maintained its stellar reputation.
While Chouinard’s seemingly off-the-cuff leadership principles can’t–and shouldn’t–be followed by every company, they do provide a solid framework for thinking about how companies today can leverage culture and behaviors as a secret weapon to build a world-class brand.
Treat business as a moral imperative
“What we take, how and when we make, what we waste, is in fact a question of ethics.”
Obsess over people and product quality
“A Patagonia employee is someone who can treat work as play, finds fulfillment in independence, and is obsessed with quality, whether that’s in a shirt or a store display.”
Attract, don’t persuade, talent based on values
“We spend a lot of time hiring the right person for a job or sourcing partners in business—so it isn’t so much about trying to “instill” our philosophy into a person as it is finding those who already share our values.”
Be brutally honest about sustainability
“We can’t delude ourselves into thinking that anything we or any other business does is “sustainable”. The best we can do is minimize the harm we do to the planet.”
Don’t chase endless growth
“We have to be cautious about growing too big. A company doesn’t last 100 years by chasing endless growth. There’s an ideal size for every business.”
Focus on action, not words
“Customers are putting pressure on companies to take action, and that’s a good thing. Young people are voting with their purchases, and companies should recognize that customers are changing.”
Build a better business model
In 2022, Chouinard and his family transferred ownership of Patagonia to the newly created Patagonia Purpose Trust and the not-for-profit organization, Holdfast Collective.
“We needed to find a way to put more money into fighting the environmental crisis while maintaining Patagonia’s values. There weren’t any good options available, so we had to create our own. The new ownership structure ensures the company stays true for another 50 years or more and uses the wealth the company generates to protect our home.”