Recently Donated Patagonia Spearheads Cause Marketing

Images from www.patagonia.com

“Earth Is Now Our Only Shareholder.”

This was the title of the press release penned by billionaire Yvon Chouinard, announcing his donation of Patagonia entirely to climate change efforts. In other words: 100% of the company’s voting stock transfers to the Patagonia Purpose Trust and 100% of the nonvoting stock was given to the Holdfast Collective, a nonprofit dedicated to fighting the environmental crisis. 

The move may become a blueprint for company founders looking to donate businesses, especially to support causes important to the benefactor. 

The social impact of Patagonia’s public transfer was immediate. For a company already generating hundreds of mentions per day across all platforms, Patagonia saw a substantial increase in both likes, shares, and interactions following the announcement. The company became the most talked-about subject among business leaders, in the media and on social media.

Last year, the business took the top spot in reputation of corporations, earning an index score of 82.7, which is based on consumer perception of the brand. The sports retailer has set a template for how social media marketing can advertise private, for-profit corporations. They mirror the initiatives of nonprofits, emphasizing their charitable and philanthropic efforts. 

While businesses traditionally are built on producing more goods and adopting a first in-first out selling approach, Patagonia has always harbored anti-consumerism at its core, caring very little for maximizing revenue. Numerous times, the company doubled down on its sustainability approach, including providing a repair guide on its website, and encouraging second hand clothing purchases. 

Already, Patagonia has adopted purpose-driven marketing. The new 4 P’s driving their marketing narrative is “People, Planet, Purpose, Profits.” In the end, maybe we shouldn’t be surprised that Chouinard donated his company. The message was right there from the beginning. There was no shocking conclusion to this story. 

From the start of their digital marketing strategy, the company didn’t just talk the environmental talk. Even before the philanthropic donation, the company was “Fair Trade” certified, used recycled material in their product, and promoted several initiatives to varied volunteer efforts in third world countries across their channels. 

A campaign in 2013 warned against development that used up the planet's resources. 

In 2017, another online marketing effort encouraged customers to return merch in good condition to stores for credit. 

Basically, cause marketing is everything to Patagonia. Now in the information age, more than ever, consumers have access to business practices that may have previously been opaque. Brands have more responsibility than ever in addressing issues that directly affect our planet.

Developing an attractive marketing strategy — if authentic — can attract customers that focus on social issues, while certifying a sense of authenticity with the promoted brand. According to the 2020 Edelman Trust Barometer Global Report, 73% of 34,000+ respondents worldwide expect a company to take actions that increase profits and improve the local community’s conditions. 

These are vital numbers, since social media is now widely considered the antithesis of environmental efforts. 

According to a study by Greenpeace, social media is the new frontier of climate deception and delay. 

Unlike those most responsible for global heating, Patagonia has always used authentic imagery and language to position themselves as “green, innovative, charitable brands.” In these cases, the concept of brand purposes is deconstructed in a negative light, claiming companies just want to sell their wares. Contrastily, Patagonia deserves every “like” on their platforms they receive; their pursuit is genuine. 

“Our Number One Shareholder Is The Planet.” 

This is the current title on Patagonia’s Twitter bio. Their plight isn’t just digitally marketing fashionable winter accessories; Patagonia has built a company around their activism, even going so far as changing its articles of association to become a B Corp prior to the donation announcement.

Purpose for purpose sake isn’t simply enough. Patagonia’s social strategy showed purposeful intent early, their voice speaking to the core of the company. 

So, what is it about authentic brand activism that motivates consumers to buy? 

If people feel like they’re contributing to something good, they are more likely to make the purchase, justifying their expense. Once a company commits to the transaction, as Patagonia has shown, charitable efforts aren’t simply throwing cash at a cause, or slipping a couple bills into Santa’s Salvation Army tin bucket. 

Beyond financial support, marketing goals should always revolve around time, skills, and expertise. Beautiful ads should be supported by advocacy. Brand equity should always directly tie into the organization’s willingness to drive change. 

Once the attention or purchase is made, it’s up to the brand to fulfill their end of the “giving” bargain. 

Brands could do worse than use Patagonia as their template. 

We here at Firebelly Marketing wear Patagonia, especially in the frigid temperatures. The weather is getting colder and we’re bundling up by our computers in our favorite winter gear, waiting for your message.