The Basic Elements of Social Responsibility that apply to Patagonia
Corporate social responsibility is very important to any corporation. There are basic elements of social responsibility that apply to Patagonia. Patagonia has a greatest responsibility to create economic benefits. In its operations, it must incur costs that result from social initiatives that they undertake. Currently, Patagonia has many social initiatives that add value to the community. For instance, they have environmental internship program that adds value to the environment. In addition, it has provided medical cover for its employees, subsidized childcare and paid internships with nonprofit environmental group. Moreover, for many years environmental activists have received support from the company.
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Furthermore, Patagonia should be transparent and accountable. It should inform the key stakeholder its social performance. The reports should contain the social impacts they have created and their financial reports be audited. Currently, they are transparent and accountable by producing reports that show their social initiatives. In their website, they have given a report detailing their social corporate responsibility performance.
Besides, it has a duty to correct the adverse social impacts they cause. For instance, they exercised social responsibility by closing the store in Boston. The underlying reason was the poor ventilation of the store and the formaldehyde gas that emanate from cotton grown with pesticides. Due to this factor, the health of people working in the store was at stake leading to its closure. They should continue to correct adverse social impacts that the company causes. To ensure adverse social impacts are discovered, it has hired a corporate responsibility specialist. His work is to establish the working conditions. In addition, they are using environmental friendly construction materials and fixtures in building their retail stores. Moreover, it has put in place 498 solar panels to reduce the overall electricity demand. They use solar energy, which is environmental friendly compared to other sources such as burning nonrenewable fossil fuels, hydroelectric dams and nuclear power. Besides, they have provided employees with means to recharge electric cars. They want to reduce the air pollution and oil spills that come along with automobile cars. In addition, they recycle waste material thus conserving the environment.
Moreover, all corporations must follow multiple bodies of law. Patagonia should ensure that it follows the corporation laws, civil and criminal laws of the state, regulations that protect stakeholders and international laws. Specifically, it should follow laws that govern workers and environmental laws.
Ultimately, Patagonia is a reputable and large company. Therefore, it has a large social responsibility compared to other companies. Social responsibility is not the same; it depends on other factors such as size.
The most important factor that influence managerial ethics
The most important is the need to meet legitimate needs of the stakeholders. Apart from having fiduciary duty to shareholders, the managers also have a duty to all the parties related to the firm. They should ensure that the needs of the customers are met by producing products that meet their needs. In addition, they should ensure that the employees needs are met and ensuring they have a good working condition. Moreover, they should ensure that the corporation follows all the laws stipulated by the government. Besides, it should ensure the needs of the community around it are met. For instance, Patagonia have ensured that the worker’s needs are met by establishing a good working condition and providing for them a medical cover..
Works cited
Gerald A. "Patagonia - Becoming a Responsible Company." Patagonia Outdoor Clothing, Apparel and Gear for Climbing, Hiking, Surfing, Running, Travel. N.p., n.d. Web. 5 June 2014.
