Patagonia; Are Benefit Corporations Hybrid Nonprofits? The movement is growing, and becoming a B Corp, though challenging, isn’t as difficult as you may think. Website: Elissa Loughman is Manager of Product Responsibility for Patagonia. By providing your email address, you agree to our Privacy Policy and Terms of Service. On January 1, 2012, the first day California-based companies could legally change their corporate status to become a ‘benefit corporation,’ Patagonia founder Yvon Chouinard marched into the office of the Secretary of State and filed papers to put his company’s principles into practice. Pike Sheehy: In 2012, we also became a benefit corporation [benefit corporations commit to creating public benefit and sustainable value in addition … If you are using a screen reader and having difficulty please call us at 1-800-638-6464. The B stands for “benefit,” and refers to benefiting workers, the community and the environment. Patagonia has a passion for the outdoors. Some well-known benefit corporations include Patagonia and King Arthur Flour. We aspire to make the best products for the most committed athletes, all the while trying to minimize our impact on the earth and the communities that inhabit it. Sacramento, California. Patagonia considers itself an "activist company". Some advisers argued against committing to a higher level of specificity. Pike Sheehy: In 2012, we also became a benefit corporation [benefit corporations commit to creating public benefit and sustainable value in addition … A company must also amend its articles of incorporation to adopt B Lab’s commitment to sustainability and treating workers well. Everything we make has an impact on people and the planet. Companies like Etsy, Patagonia and Warby Parker are among a new generation of socially responsible businesses that can fall under the category of a benefit corporation or a Certified B Corp. Track orders, save products, easy hassle-free returns & exchanges. Everything we make has an impact on people and the planet. Greater Grand Rapids, Michigan Area Program Manager at Shape Corp. “Patagonia is trying to build a company that could last 100 years,” said Patagonia founder Yvon Chouinard. Patagonia and Ben & Jerry’s are also certified B Corporations. A benefit corporation, meanwhile, is a legal status conferred by one of 27 states (plus Washington, D.C.) that have passed legislation allowing a new class of corporation. Ft. condo/townhome/row home/co-op built in 2016 that sold on 12/06/2019. Ultimately, it is important to us that Patagonia plays a role in preserving our natural resources and the connections that humans have to the earth. Sign up for exclusive offers, original stories, activism awareness, events and more from Patagonia. And nonprofit organizations and charities are often needlessly restricted in their ability to raise capital when they need to grow. Learn more in the video below! Certified BCorp: True. “Benefit corporation legislation creates the legal framework to enable mission-driven companies like Patagonia to stay mission-driven through succession, capital raises, and even changes in ownership, by institutionalizing the values, culture, processes, and high standards … Download the PDF. Many clients ask us about becoming a B Corp and whether it’s right for them. Buy used, trade in and fix your gear through Worn Wear. Patagonia Works and its subsidiaries share common values, operate in a similar manner and have all … The approach they take toward product design demonstrates a bias for simplicity and utility. For similar reasons, benefit corporations … Download the 2013 PDF There are now nearly chartered 4,000 benefit corporations. We strive to accomplish this to the best of our ability and maintain a level of transparency about the impacts caused by our operations. A public benefit corporation is a brand-new legal tool to create a strong basis for long-term mission alignment and value creation.3 min read. Patagonia and Ben & Jerry’s are also certified B Corporations. We’ve pledged 1% of sales to the preservation and restoration of the natural environment. Like all businesses, we face unique and specific challenges based on the size of our business, the scope of the products we make and the depth of our supply chain. Introduction. A professional service corporation, as the name implies, is a corporation made up exclusively of licensed professionals. We look forward to hearing your thoughts on our work. Patagonia was the first California company to sign up for B certification, in January, 2012, joining over 500 certified B Corporations in 60 different industries. An Entrepreneur's Guide to Certified B Corporations and Benefit Corporations Just Good Business: An Investor’s Guide to B Corps The Benefit Corporation from Theory to Practice:A Case study of the New Corporate Model, Its Obligation to Maximizing a Triple Bottom Line, and How the Environment and Society Benefit By, Lauren Turner Zahringer Masters Dissertation Paper University College London MSc Environment, Science and Society The University of Michigan’s Ross School of Business's Positive Business Conference will take place May 12-13, 2016 and empower attendees to become po Read, watch, and listen to our latest stories and the best of our archives. Getting brands to reexamine their fiduciary responsibility and certifying B-corporations is part of B Lab’s larger goal to change the nature of business by changing corporate law. Nonprofits can't be benefit corporations, but they may create one. We are proud of our score of 116 but know we can do better and have already started developing plans to improve on the results of our B Impact Assessment. So-called B Corporations publicly commit to safe and responsible business practices that "benefit all," among other criteria. Gone are the days of companies trying to stay neutral on hot-button issues. Sign up for exclusive offers, original stories, activism awareness, events and more. Stonyfield, like Ben & Jerry’s and Patagonia, is now a Certified B Corporation. Video: Patagonia ambassador Dan Ross talks about why he supports B Corps. VENTURA, Calif., Jan 17, 2011 – Today, Patagonia earned certification as a B Corporation, joining more than 500 leading businesses from 60 industries that share a common goal to redefine success in business. Patagonia Becomes A Benefit Corporation. Benefits information above is provided anonymously by current and former Patagonia employees, and may include a … The B stands for “benefit,” and refers to benefiting workers, the community and the environment. Crafting the mission: Initially, Patagonia questioned how — and in what level of detail — its philosophies should be ingrained in its benefit corporation structure, which was established in 2012. Patagonia takes next steps to certify environmental performance after instutionalizing new legal structure as California's first benefit corporation; joins community of 500 companies to redefine business in today's world. Fiscal Year 2017 Annual Benefit Corporation eport. Companies like Etsy, Patagonia and Warby Parker are among a new generation of socially responsible businesses that can fall under the category of a benefit corporation or a Certified B Corp. Ridgeway said that the company … We are excited to share that we improved on our 2011 score, going from 107 to 116 in 2014. Patagonia was the first California company to sign up for B certification, in January, 2012, joining over 500 certified B Corporations in 60 different industries. As a Benefit Corporation, Patagonia would be legally required to consider its environmental and social impacts, and could even prioritize those considerations ahead of profits. The Potential Impact on Not-for-Profit Organizations. If you are using a screen reader and having difficulty please call us at 1-800-638-6464. It is delightful and quite encouraging to more and more businesses make an effort to give back to the world. California is one of twenty-seven states that permit companies to designate an explicit social or environmental mission, and create a legally binding fiduciary responsibility to take into account the interests of workers, the community and the environment as well as its shareholders. B Lab is a nonprofit organization based in Pennsylvania that certifies B Corporations, in the way TransFair certifies Fair Trade coffee or USGBC certifies LEED buildings. patagonia.com. Patagonia Development, LLC filed as a Domestic Limited Liability Company (LLC) in the State of Texas on Thursday, June 15, 2017 and is approximately three years old, as recorded in documents filed with Texas Secretary of State. Above: Yvon Chouinard gives a short speech after Patagonia became the first California company to sign up for Benefit Corporation status. Patagonia Becomes A Benefit Corporation. Patagonia was the first California company to sign up for B certification, in January, 2012, joining over 500 certified B Corporations in 60 different industries. We sell regenerative organic foods & clothing for climbing, skiing/snowboarding, surfing, flyfishing, mountain biking & trail running. Patagonia was among a dozen companies to take the opportunity to become a "benefit corporation" on the first day such a designation went into effect in California. “Benefit corporation legislation creates the legal framework to enable mission-driven companies like Patagonia to stay mission-driven through succession, capital raises, and even changes in ownership, by institutionalizing the values, culture, processes, and high standards put in place by founding entrepreneurs.” Download the 2017 PDF In 2017, the company was recognized for its innovative family/maternity leave policies. Stonyfield also intends to amend its articles of incorporation within the next 18 months to join Ben & Jerry’s and Patagonia as benefit corporations. The community of benefit corporations includes well-known and highly-profitable companies such as Patagonia and Klean Kanteen. Corporate Structure: Benefit Corporation. Download the PDF This means employees, communities and the environment rank alongside shareholders in … A public benefit corporation created by a government, also known as a statutory corporation or government owned corporations, generally provide free or subsidized services or benefits for the public. Patagonia was among a dozen companies to take the opportunity to become a "benefit corporation" on the first day such a designation went into effect in California. Benefit Corporation Update: Patagonia Passes B Impact Assessment, Improves Score to 116, Dan Ross talks about why he supports B Corp, We are excited to share that we improved on our 2011 score, going from 107 to 116 in 2014, We achieved 58% of the total possible score. Build the best product. ... and Patagonia, a company working to promote safe, fair, legal and humane working conditions. Do you have to be a U.S. citizen or a U.S. resident to incorporate and/or own a corporation in Texas? To maintain our status as a Benefit Corporation (according to the State of California’s requirements) and our status as a B Corp (according to B Lab’s requirements) we recently completed our second official B Impact Assessment, a biannual requirement for B Lab. Patagonia Development, LLC Overview. Certified B Corporations. 1. The dozen CEOs filed their documents at 9:30 a.m. as soon as the offices of the California Secretary of State opened. Glassdoor is your resource for information about Patagonia benefits and perks. Furthermore, “Benefit corporations do NOT need to be certified. Patagonia founder Yvon Chouinard explains: “Benefit Corporation legislation creates the legal framework to enable mission-driven companies like Patagonia to stay mission-driven through succession, capital raises, and even changes in ownership, by institutionalizing the values, culture, processes, and high standards put in place by founding entrepreneurs.” We’ve also learned that B Lab’s assessment is tough! Get Listed. Benefit corporations are neither nonprofits nor hybrid nonprofits. © 2020 Patagonia, Inc. All Rights Reserved. Benefit corporation legislation has been enacted in 27 states with the original legislation first appearing in Maryland in 2010. Patagonia founder Yvon Chouinard explains: “Benefit Corporation legislation creates the legal framework to enable mission-driven companies like Patagonia to stay mission-driven through succession, capital raises, and even changes in ownership, by institutionalizing the values, culture, processes, and high standards put in place by founding entrepreneurs.”. Download the 2019 PDF B Lab spent a day visiting Patagonia’s Ventura headquarters in September 2014 to verify our score through an on-site audit. B Corps are even receiving praise from traditional media outlets. Stonyfield also intends to amend its articles of incorporation within the next 18 months to join Ben & Jerry’s and Patagonia as benefit corporations. By providing your email address, you agree to our Privacy Policy and Terms of Service. Provide your account email address to receive an email to reset your password. Create a free Patagonia account. Learn more about our environmental and social responsibility program. Benefits information above is provided anonymously by current and former Patagonia employees, and may include a … We did well in some areas and have room for improvement in others. Their criteria for the best product rests on function, repairability, and, foremost, durability. Those can be tricky demands to make politely. Gone are the days of companies trying to stay neutral on hot-button issues. Governmental Public Benefit Corporations. For-profit firms face legal pressure to forgo social goals in favor of maximizing profits. Glassdoor is your resource for information about Patagonia benefits and perks. Sign up for exclusive offers, original stories, activism awareness, events and more from Patagonia. The employee experience below at Patagonia, compared to a typical U.S. based company. To qualify as a B Corp, a firm must have an explicit social or environmental mission, and a legally binding fiduciary responsibility to take into account the … Patagonia Inc: A Benefit Corp Case Study 1. Below, we’ve summarized the areas of our work that B Lab highlighted as “Best Practices” and those where we have opportunities to improve. To qualify as a B Corp, a firm must have an explicit social or environmental mission, and a legally binding fiduciary responsibility to take into account the … Misconception: Benefit corporations have trouble raising money Benefit corporations are attractive to a large and growing market for socially responsible and impact investments. Patagonia became California’s first Benefit Corporation in 2012, which made these practices part of our legal charter and embedded our core values into Patagonia’s foundation forever. B Corps (benefit corporations) are a new kind of corporation legally required to: 1) have a corporate purpose to create a material positive impact on society and the environment; 2) redefine fiduciary duty to require Through B Lab’s assessment process, we’ve learned a lot about how to improve as a business. Because we know prioritizing durability results in consuming less energy, wasting less water and creating less trash. Patagonia was the first California company to sign up for B certification, in January, 2012, joining over 500 certified B Corporations in 60 different industries. Patagonia Works (“Patagonia”) is an outdoor apparel company with a more than 40-year history of environmental conservation and activism. These companies are not only profitable, but leaders in their industries who show how the benefit corporation structure can be used to generate long-term value. Consumers want corporations to take strong stands--and Patagonia is pioneering how to do it. Protecting and preserving the environment is a core business tenet as reflected in our mission to “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the … A public benefit corporation is a corporation created to generate social and public good, and to operate in a responsible and sustainable manner.. Download the 2017 PDF Current law requires corporations to favor the financial interests of shareholders over the interests of workers, communities and the environment. But the King Arthur Flour Company is different from its major competitors, and not just because of its baking qualities. Since then, we’ve enjoyed continued growth by all measures. Track orders, save products, easy hassle-free returns & exchanges. Patagonia doesn’t need to worry about investors’ opposing its environmental work, because that work is simply part of the job. Ridgeway said that the … Patagonia now has $600m in annual revenues from sales of its outdoor sports apparel, making it the largest company so far to sign as a benefit corporation. Certification follows Patagonia's filing to become one of California's first Benefit Corporations on January 4th, 2012. B Corps (benefit corporations) are a new kind of corporation legally required to: 1) have a corporate purpose to create a material positive impact on society and the environment; 2) redefine fiduciary duty to require An exception in the outdoor clothing market, where weak policies abound, Patagonia has worked hard to improve workers’ rights in its supply chains. Together, the Benefit Corporation structure and B Corp accountability requirements provide Patagonia’s Opportunities for Improvement. We are inspired by the growth of the B Corp community and hope that our story helps to inspire others. Consumers want corporations to take strong stands--and Patagonia is pioneering how to do it. To formalize these efforts and legally preserve our values in Patagonia’s business framework for the future, we became a B Corp in December 2011 with certification from B Lab. Buy used, trade in and fix your gear through Worn Wear. It uses recycled paper and renewable energy and gives food scraps to a local farmer. Patagonia founder Yvon Chouinard led the largest group of businesses to register on the legislation’s first effective date among the 7 states that have passed benefit corporation laws. The concept is a relatively new one, but it's a way for … Use comparisons and community: Benefit corporations and mission-driven companies often demand unusual strategies of themselves and their partners. A benefit corporation, meanwhile, is a legal status conferred by one of 27 states (plus Washington, D.C.) that have passed legislation allowing a new class of corporation. The B stands for “benefit,” and refers to benefiting workers, the community and the environment. 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