By giving up on corporate responsibility, Patagonia’s founder undermines current strides toward ethical capitalism.
The founder of Patagonia, long known for environmental activism, said on Sept. 14 that the company is dedicating all its future profits to a non-profit focused on fighting the environmental crisis and defending nature.
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Whether or not Patagonia’s recent move will have a lasting impact on business responsibility will depend on how it balances its environmental impacts with the social good it carries out.
Patagonia has always sought to limit its environmental harm.
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Yvon Chouinard, his wife and their two adult children have given the company he founded away. From now on, its profits will fund climate and conservation work.
The company’s profits will sustain these efforts in perpetuity.
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Yvon Chouinard’s gift is unusual due to its structure but is also part of a trend. Many billionaires and large foundations are now funding these causes.