What Patagonia’s ‘gift to earth’ means for authenticity
Nick Rewcastle, Managing Director of New Reach PR, ponders in SportsPro
whether Patagonia’s lauded decision to commit all future profits towards protecting the planet could mark a shift in the meaning of brand authenticity.
Patagonia has ‘given their company to planet Earth’. In layman’s terms, what that means is that the ownership of the company has been transferred to two charitable trusts, allowing profits not required to be reinvested into the running of the business to go directly towards fighting the effect of climate change.
The brand claims that “instead of ‘going public’, you could say we’re ‘going purpose’.” It’s fair to say that sacrificing profit to instead give back to the planet is pretty purpose-led.
The news spread like wildfire across the US and overnight here in the UK, before we knew it, every daily was running it. It was even the second most read story on BBC News – yes, in the week after The Queen’s death.
However, the best thing about this was that it wasn’t a ‘PR activation’ from Patagonia – this is genuine. Patagonia embodies the definition of being a purpose-led business. It actually cares. We can’t ignore the fact that founder Yvon Chouinard (pictured above) is a billionaire, but the authenticity comes from the fact that instead of financial growth, he commits to giving back and to his values.
Chouinard has written an open letter detailing the reasons behind this decision. He claims that he never wanted to be a businessman, things escalated and before he knew it, Patagonia was what it was. He never wanted to be a billionaire, and just wants to do good – that ethos has resonated through the brand’s existence.
Now, Earth is Patagonia’s ‘only stakeholder’. It’s powerful, and everyone is talking about it. Could we regard this as the most authentic moment in business history?
For a few years now, in the rise of the purpose-led movement, and the need for brands to be seen to do good, the definition of authenticity has been scrutinised. Nobody has really come up with the answer. Perhaps unbeknown to Chouinard, we finally have our answer.
Is this the big shift that we needed in authentic action?
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