{"id":2935,"date":"2023-02-19T16:11:09","date_gmt":"2023-02-19T16:11:09","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/apply-it-6-3-corporate-social-responsibility\/"},"modified":"2025-05-12T18:16:13","modified_gmt":"2025-05-12T18:16:13","slug":"apply-it-6-3-corporate-social-responsibility","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/apply-it-6-3-corporate-social-responsibility\/","title":{"raw":"Apply It 6.3: Corporate Social Responsibility","rendered":"Apply It 6.3: Corporate Social Responsibility"},"content":{"raw":"<section class=\"textbox learningGoals\">\r\n<ul>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Define corporate social responsibility (CSR)&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Define corporate social responsibility (CSR)<\/span><\/li>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand the impact of CSR on stakeholders&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand the impact of CSR on stakeholders<\/span><\/li>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Recognize examples of CSR&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Recognize examples of CSR<\/span><\/li>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand controversies surrounding CSR&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand controversies surrounding CSR<\/span><\/li>\r\n<\/ul>\r\n<\/section>\r\n<section class=\"textbox example\">\r\n<h2>Who owns Patagonia now?<\/h2>\r\n<p><img class=\"size-medium wp-image-5495 alignright\" src=\"https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/18202129\/pexels-guduru-ajay-bhargav-1076081-300x200.jpg\" alt=\"group of hikers carrying backpacks\" width=\"300\" height=\"200\" \/>If you\u2019re looking for a company that\u2019s a leader in environmental and social responsibility on many fronts, look no further than Patagonia, a designer of outdoor clothing gear for the \u201csilent sports\u201d\u2014climbing, surfing, skiing, snowboarding, fly fishing, and trail running. Just start with Patagonia\u2019s mission statement: \u201cBuild the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.\u201d<\/p>\r\n<p>In addition to being fair-trade certified for all of its sewing production, the brand knows and publicly discloses all of its first-tier suppliers and is actively working to map out the rest down to the farm level for the raw materials used in its gear. Many consider Patagonia to be an outdoor brand, but it offers products in many categories, from sundresses to skinny jeans.[footnote]Balwin, Cory. \u201cEthical, Sustainable Brands You Can Really Trust.\u201d Vox, August 22, 2017. https:\/\/www.vox.com\/2017\/8\/22\/16171338\/ethical-sustainable-fashion-brands-where-to-buy-sustainable-clothes[\/footnote]<\/p>\r\n<p>A large portion of the company\u2019s products are made from recycled materials or raw organic cotton. Plastic soda bottles are made into fleece jackets, guayule plants are made into wetsuits, and they take back worn-out Patagonia products that consumers return to the store at no charge and then recycle them into their supply chain.[footnote]Reasons We Love Patagonia. (n.d.). accessed August 4, 2021, from https:\/\/www.wearedore.com\/photos\/reasons-we-love-patagonia\/[\/footnote]<\/p>\r\n<p>In 2022, Patagonia's founder, Yvon Chouinard, announced that he and his family transferred ownership of the $3 billion company to a specially designed trust and a nonprofit organization.[footnote]Behring, Natalie. \u201cBillionaire No More: Patagonia Founder Gives Away the Company.\u201d NYT, September 14, 2022[\/footnote] Chouinard, who is 83, hopes that this will result in a new form of capitalism that \"doesn't end up with a few rich people and a bunch of poor people.\"[footnote]Id.[\/footnote]<\/p>\r\n<p>As he looked toward retirement, Chouinard's children did not want to take over ownership of Patagonia and he especially did not want to take the company public because he had no confidence that a publicly traded company would prioritize the welfare of workers.[footnote]Id.[\/footnote] He told the New York Times, \"I didn\u2019t know what to do with the company because I didn\u2019t ever want a company. I didn\u2019t want to be a businessman. Now I could die tomorrow and the company is going to continue doing the right thing for the next 50 years, and I don\u2019t have to be around.\"[footnote]Id.[\/footnote]<\/p>\r\n<p>Patagonia will still operate as a for-profit business; however, the Patagonia Purpose Trust will control the company. At the same time, the newly established nonprofit organization, the Holdfast Collective, will receive 100% of Patagonia's profits, estimated at $100 million a year, and be responsible for ensuring that the money is used to combat climate change and protect undeveloped land around the globe.[footnote]Id.[\/footnote]<\/p>\r\n<\/section>\r\n<section class=\"textbox tryIt\">[ohm2_question height=\"300\"]4316[\/ohm2_question]<\/section>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>","rendered":"<section class=\"textbox learningGoals\">\n<ul>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Define corporate social responsibility (CSR)&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Define corporate social responsibility (CSR)<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand the impact of CSR on stakeholders&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand the impact of CSR on stakeholders<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Recognize examples of CSR&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Recognize examples of CSR<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand controversies surrounding CSR&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15233,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand controversies surrounding CSR<\/span><\/li>\n<\/ul>\n<\/section>\n<section class=\"textbox example\">\n<h2>Who owns Patagonia now?<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-5495 alignright\" src=\"https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/18202129\/pexels-guduru-ajay-bhargav-1076081-300x200.jpg\" alt=\"group of hikers carrying backpacks\" width=\"300\" height=\"200\" srcset=\"https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/18202129\/pexels-guduru-ajay-bhargav-1076081-300x200.jpg 300w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/18202129\/pexels-guduru-ajay-bhargav-1076081-1024x682.jpg 1024w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/18202129\/pexels-guduru-ajay-bhargav-1076081-768x512.jpg 768w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/18202129\/pexels-guduru-ajay-bhargav-1076081-1200x800.jpg 1200w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/18202129\/pexels-guduru-ajay-bhargav-1076081-65x43.jpg 65w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/18202129\/pexels-guduru-ajay-bhargav-1076081-225x150.jpg 225w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/18202129\/pexels-guduru-ajay-bhargav-1076081-350x233.jpg 350w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/18202129\/pexels-guduru-ajay-bhargav-1076081.jpg 1280w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>If you\u2019re looking for a company that\u2019s a leader in environmental and social responsibility on many fronts, look no further than Patagonia, a designer of outdoor clothing gear for the \u201csilent sports\u201d\u2014climbing, surfing, skiing, snowboarding, fly fishing, and trail running. Just start with Patagonia\u2019s mission statement: \u201cBuild the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.\u201d<\/p>\n<p>In addition to being fair-trade certified for all of its sewing production, the brand knows and publicly discloses all of its first-tier suppliers and is actively working to map out the rest down to the farm level for the raw materials used in its gear. Many consider Patagonia to be an outdoor brand, but it offers products in many categories, from sundresses to skinny jeans.<a class=\"footnote\" title=\"Balwin, Cory. \u201cEthical, Sustainable Brands You Can Really Trust.\u201d Vox, August 22, 2017. https:\/\/www.vox.com\/2017\/8\/22\/16171338\/ethical-sustainable-fashion-brands-where-to-buy-sustainable-clothes\" id=\"return-footnote-2935-1\" href=\"#footnote-2935-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a><\/p>\n<p>A large portion of the company\u2019s products are made from recycled materials or raw organic cotton. Plastic soda bottles are made into fleece jackets, guayule plants are made into wetsuits, and they take back worn-out Patagonia products that consumers return to the store at no charge and then recycle them into their supply chain.<a class=\"footnote\" title=\"Reasons We Love Patagonia. (n.d.). accessed August 4, 2021, from https:\/\/www.wearedore.com\/photos\/reasons-we-love-patagonia\/\" id=\"return-footnote-2935-2\" href=\"#footnote-2935-2\" aria-label=\"Footnote 2\"><sup class=\"footnote\">[2]<\/sup><\/a><\/p>\n<p>In 2022, Patagonia&#8217;s founder, Yvon Chouinard, announced that he and his family transferred ownership of the $3 billion company to a specially designed trust and a nonprofit organization.<a class=\"footnote\" title=\"Behring, Natalie. \u201cBillionaire No More: Patagonia Founder Gives Away the Company.\u201d NYT, September 14, 2022\" id=\"return-footnote-2935-3\" href=\"#footnote-2935-3\" aria-label=\"Footnote 3\"><sup class=\"footnote\">[3]<\/sup><\/a> Chouinard, who is 83, hopes that this will result in a new form of capitalism that &#8220;doesn&#8217;t end up with a few rich people and a bunch of poor people.&#8221;<a class=\"footnote\" title=\"Id.\" id=\"return-footnote-2935-4\" href=\"#footnote-2935-4\" aria-label=\"Footnote 4\"><sup class=\"footnote\">[4]<\/sup><\/a><\/p>\n<p>As he looked toward retirement, Chouinard&#8217;s children did not want to take over ownership of Patagonia and he especially did not want to take the company public because he had no confidence that a publicly traded company would prioritize the welfare of workers.<a class=\"footnote\" title=\"Id.\" id=\"return-footnote-2935-5\" href=\"#footnote-2935-5\" aria-label=\"Footnote 5\"><sup class=\"footnote\">[5]<\/sup><\/a> He told the New York Times, &#8220;I didn\u2019t know what to do with the company because I didn\u2019t ever want a company. I didn\u2019t want to be a businessman. Now I could die tomorrow and the company is going to continue doing the right thing for the next 50 years, and I don\u2019t have to be around.&#8221;<a class=\"footnote\" title=\"Id.\" id=\"return-footnote-2935-6\" href=\"#footnote-2935-6\" aria-label=\"Footnote 6\"><sup class=\"footnote\">[6]<\/sup><\/a><\/p>\n<p>Patagonia will still operate as a for-profit business; however, the Patagonia Purpose Trust will control the company. At the same time, the newly established nonprofit organization, the Holdfast Collective, will receive 100% of Patagonia&#8217;s profits, estimated at $100 million a year, and be responsible for ensuring that the money is used to combat climate change and protect undeveloped land around the globe.<a class=\"footnote\" title=\"Id.\" id=\"return-footnote-2935-7\" href=\"#footnote-2935-7\" aria-label=\"Footnote 7\"><sup class=\"footnote\">[7]<\/sup><\/a><\/p>\n<\/section>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm4316\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=4316&theme=lumen&iframe_resize_id=ohm4316&source=tnh&show_question_numbers\" width=\"100%\" height=\"300\"><\/iframe><\/section>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-2935-1\">Balwin, Cory. \u201cEthical, Sustainable Brands You Can Really Trust.\u201d Vox, August 22, 2017. https:\/\/www.vox.com\/2017\/8\/22\/16171338\/ethical-sustainable-fashion-brands-where-to-buy-sustainable-clothes <a href=\"#return-footnote-2935-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><li id=\"footnote-2935-2\">Reasons We Love Patagonia. (n.d.). accessed August 4, 2021, from https:\/\/www.wearedore.com\/photos\/reasons-we-love-patagonia\/ <a href=\"#return-footnote-2935-2\" class=\"return-footnote\" aria-label=\"Return to footnote 2\">&crarr;<\/a><\/li><li id=\"footnote-2935-3\">Behring, Natalie. \u201cBillionaire No More: Patagonia Founder Gives Away the Company.\u201d NYT, September 14, 2022 <a href=\"#return-footnote-2935-3\" class=\"return-footnote\" aria-label=\"Return to footnote 3\">&crarr;<\/a><\/li><li id=\"footnote-2935-4\">Id. <a href=\"#return-footnote-2935-4\" class=\"return-footnote\" aria-label=\"Return to footnote 4\">&crarr;<\/a><\/li><li id=\"footnote-2935-5\">Id. <a href=\"#return-footnote-2935-5\" class=\"return-footnote\" aria-label=\"Return to footnote 5\">&crarr;<\/a><\/li><li id=\"footnote-2935-6\">Id. <a href=\"#return-footnote-2935-6\" class=\"return-footnote\" aria-label=\"Return to footnote 6\">&crarr;<\/a><\/li><li id=\"footnote-2935-7\">Id. <a href=\"#return-footnote-2935-7\" class=\"return-footnote\" aria-label=\"Return to footnote 7\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":21,"menu_order":19,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"group of hikers\",\"author\":\"Guduru Ajay bhargav\",\"organization\":\"Pexels\",\"url\":\"https:\/\/www.pexels.com\/photo\/people-walking-on-road-near-trees-at-daytime-photo-1076081\/\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":2916,"module-header":"apply_it","content_attributions":[{"type":"cc","description":"group of hikers","author":"Guduru Ajay bhargav","organization":"Pexels","url":"https:\/\/www.pexels.com\/photo\/people-walking-on-road-near-trees-at-daytime-photo-1076081\/","project":"","license":"cc-by","license_terms":""}],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2935"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/users\/21"}],"version-history":[{"count":10,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2935\/revisions"}],"predecessor-version":[{"id":5620,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2935\/revisions\/5620"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/parts\/2916"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2935\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/media?parent=2935"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=2935"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/contributor?post=2935"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/license?post=2935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}