In the modern day business environment, business has become very complicated. Consumers have become increasingly aware of the impacts from their purchasing decision. These purchasing decisions impact business’s revenue stream. Furthermore, the impacts have forced businesses to tackle issues social and environment that they have not have to confront in previous generations. For example, businesses are under pressure to ensure that manufactured materials are derived from sustainable resources, and not from environmentally sensitive areas. The environment complexity is due to a funnel effect. As society increases pressure on businesses to reduce their impact on climate change, green house gases, and tensions with opposing groups, such as …show more content…
The company is classified as a tier 4, because they are always striving to reshape society through lobbying, civic engagement, and public campaigns. Sustainability is integrated into their corporate strategy. Patagonia mission statement is to “build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” (ref: pantagonia). Patagonia is a leader in sustainable clothing and social responsibility. For example, the company provided daycare services to employees at a time it was unprecedented. Furthermore, they launched the Worn Wear program, which encourages consumers to resell or wear throughout the clothes life time instead of buying new Patagonia products. Patagonia’s business model is unique because it does not encourage reoccurring income like traditional business models. Moreover, Patagonia focuses on another important parameter, which is sustainability. As the pressure increases for companies to be accountable for their actions, Patagonia has easily navigated through this complex landscape. The company has been proactive in being socially and environmentally responsible. They are know to source clothing material from areas with a lower environmental footprint. ( such as ) Patagonia is a socialist company, and capitalism is a secondary …show more content…
The way Dakota Access Pipeline was handled has pressured companies to be diligent in social responsibility. The pipeline was approved without the approval of the First Nation, which means the project did not get a social licence to operate. This issues are very complex, and been ongoing for many years. In recent years, the government has used a general approval process, ensuring that this project is moving forward. However, the approval process, did not align with the First Nation tribe’s values. There are many cultural differences between the government and First Nations on the way each stakeholder conducts business. Because of these differences, the project has incurred substantial standby expenses when thousands of Americans protested on the project, halting