Patagonia’s (epic) move. So, what's your next step going to be?

SHOCK NEWS from Patagonia that should be spread everywhere (and deserves a standing ovation!) ???????

Bad news travels fast. Scandals of charities doing the opposite of good is like fuel to a wildfire.

Every time this happens, hope for humanity takes another hit.

But not this week, friends! Good news has triumphed. Patagonia has made a shockingly good announcement that really should be spreading like wildfire.

Patagonia’s founder Yvon Chouinard, and family have announced they’re giving their entire business to Earth, going 100% for purpose, with, in their words, “100% of the company’s voting stock transfers to the Patagonia Purpose Trust, created to protect the company’s values; and 100% of the nonvoting stock had been given to the Holdfast Collective, a nonprofit dedicated to fighting the environmental crisis and defending nature”.?

Patagonia’s entire approach to business-for-good has led the way for so long that this latest news feels natural. But we’ve seen how rare a move like this actually is. For too long, the social business conversation has been about rewarding shareholders to help purpose-led businesses make a greater impact. Even at Thankyou, we’ve spent a lot of time wrestling with this idea.?

Thankyou is owned 100% by our Charitable Trust. Always has been, and always will be.?

There’s immense value in this business model. The greatest? Purpose and vision is clear, and there is never and never will be a conflict with shareholders looking to personally and financially gain from the success.?

It’s 2022, and rightly so –?almost every business on the planet is talking about having a purpose, ESGs, CSRs, and it goes on. At Thankyou, we’ve said for a long time that ‘purpose’ isn’t the coat of paint on the outside; it’s the fuel on the inside that drives an organisation forward at its very core. We, as consumers, are smart.? We can smell a fresh coat of paper-thin purpose paint from a mile away. Purpose isn’t the latest trend. Though sadly, some businesses may hope a thin layer of ‘purpose-paint’ will keep staff longer and increase sales. It cannot, and must not, be a thin layer of ‘purpose paint’ –? it must be the fuel found deep in the core of an organisation. Staring down the barrel of the future, purpose is becoming, and will be, the very deciding ticket to whether a business has a ‘right to play’ or not.?

Here’s a question for you. Patagonia was arguably already one of the most purpose-led consumer brands on the planet –?so why did they *need* to do this?

Our theory? At the very core of who they are is purpose-led. They’re fuelled by questions like, “is there more we can do?” or “Is there another step we can take to further our purpose?”

Purpose costs you, always. It’s going to take from you.? That thought needs a lot more airtime in boardrooms all around the world. In this case, the cost for Patagonia’s founder and family is giving up their personal wealth of $4.4B AUD. Of course, to them, the trade-off is a legacy of impact left for generations to come. The beautiful thing about purpose is that although it might take something from you, the reward for humanity is even greater.?

A crazy thought is that this decision from Patagonia will likely drive revenue and profits higher than they have ever been –?and now, ultimately, for their mission.

Does this mean that every business owner should put their company into a charitable trust? (I mean, that would be fun!) But for some, it won’t work like that.?

The question we should be asking is, "How can our organisation take bolder steps to further our purpose?" The answer to this may be different for everyone.?

There’s no denying our world is in an urgent state of need on many fronts, but there is hope, and today, a bold move like this helps further fuel that hope. As consumers and organisations, we can all play a part.

What's your next step? (Apart from continuing to choose Patagonia, of course!)

– The Thankyou team?