Scaling the Peak of Values: Check out this popular retailer’s expedition into ethical entrepreneurship!

Tuesday: Return Driven Strategy FROM THE DESK OF MILES EVERSON: Welcome to today’s “Return Driven Strategy (RDS)!” I’m excited to share with you an important insight in this article. For those of you who aren’t familiar with it yet, RDS is a pyramid-shaped framework with 11 tenets and 3 foundations. When utilized properly, these principles enable businesses to achieve high performance levels and returns. Today, let’s talk about RDS’ Tenet 1: Ethically Maximize Wealth. Continue reading to know why it’s important for firms to operate within the ethical boundaries of the constituents they serve. CEO, MBO Partners Chairman of the Advisory Board, The I Institute

Scaling the Peak of Values: Check out this popular retailer’s expedition into ethical entrepreneurship! What factors do you consider when buying outdoor wear? Breathability? Mobility? Durability? Well, it’s true that all of these factors are important when shopping for clothes from an outdoor brand. … but did you know that aside from these factors, one outdoor brand stood out from the rest by exceeding consumers’ expectations? We’re talking about… Patagonia! In the vast outdoor apparel industry, Patagonia is a beacon of sustainability and social responsibility. Founded in 1973 by Yvon Chouinard, an environmentalist, climber, surfer, and businessman, Patagonia is celebrated for its premium outdoor gear and unwavering dedication to environmental responsibility and sustainability. Redefining Outdoor Fashion with a Purpose Picture this: You’re out on the trails, with the wind whipping through your hair, and you’re decked out head-to-toe in Patagonia gear. Talk about #OutdoorWearGoals! … but did you know that every stitch of Patagonia clothing is part of a much bigger story—one of environmental consciousness and social responsibility? Take its “Worn Wear” program, for instance. More than being a clever marketing ploy, the program is a genuine effort to reduce waste and promote longevity in clothing. What does this look like? Suppose you have a piece of clothing you’ll no longer be using. Instead of throwing out that torn jacket or worn-out pair of pants, Patagonia encourages you to repair and recycle them, extending their lifespan and reducing your carbon footprint in the process. The “Worn Wear” program offers multiple avenues for extending the lifespan of your clothing and reducing waste. These are the following: Repair Services: You can bring your damaged Patagonia clothing to one of the brand’s repair centers or use the online repair request form. Patagonia’s skilled technicians will mend your clothing, often using recycled materials, to make them look new again. DIY Repair Guides: Patagonia provides free resources and guides on its website to help you repair your clothing at home. This empowers customers to tackle minor repairs themselves, further extending the durability of their garments. Trade-In Program: If your clothing is beyond repair or you simply no longer need it, you can trade it at a Patagonia store. In exchange, you’ll receive store credit that can be used to purchase new or used Patagonia items. Recycling Program: Patagonia offers a recycling program for items that are truly worn out and can no longer be repaired or traded in. You can drop off your old Patagonia clothing at a store or mail it back to the company to recycle the materials and create new products out of it. Interesting, right? Through the “Worn Wear” program, it’s like you’re giving your old gear a second chance at adventure! In fact, with dedication to environmental and social justice, Patagonia leverages its influence and prosperity for the betterment of the planet and the people. This means in choosing the brand, individuals aren’t just purchasing garments; they’re also investing in a steadfast commitment to environmental sustainability. Patagonia’s Business Strategy as Seen Through the Lens of Return Driven Strategy (RDS) This means in choosing the brand, individuals aren’t just purchasing garments; they’re also investing in a steadfast commitment to environmental sustainability. As a beacon of corporate responsibility, Patagonia illuminates the path for businesses worldwide, proving that profitability and purpose are not mutually exclusive but rather intertwined forces capable of driving meaningful change. Now, you might be thinking, “Sure, that all sounds great, but does that actually make Patagonia any money?” The answer is YES. Despite—or perhaps because of—its unwavering commitment to sustainability, Patagonia continues to rake in the green. As it turns out, doing good is also good for a business! So, what’s the secret behind Patagonia’s success? Let’s answer that question through RDS’ Tenet 1—Ethically Maximize Wealth. According to Professor Joel Litman and Dr. Mark L. Frigo in their book, “Driven”: “When the needs of the various constituents of a business are being met in voluntary exchange, the communities generally see the firm’s activities functioning within ethical parameters. Woe to the society that deems wealth-creation a bad thing or believes that wealth is only taken and never created.” In Patagonia’s case, the company makes sure its business practices support sustainability and consumers’ preferences by creating high-quality products with minimal environmental impact. This clearly shows that profit and positive global impact can go hand in hand! The brand isn’t just selling jackets and backpacks but also a vision of a better, more sustainable world. As long as the company keeps blazing that trail, its customers will be right there with them, fleece vests and all. — If you’re looking to gain a better understanding of Return Driven Strategy and Career Driven Strategy, we highly recommend checking out “Driven” by Professor Litman and Dr. Frigo. Click here to get your copy and learn how this framework can help you in your business strategies and ultimately, in ethically maximizing wealth for your firm. Hope you found this week’s insights interesting and helpful.     Are you having a great time in your current career? Learn more about the reasons why you could fail in your career in next week’s article!