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ABSTRACT Over the past 40 years, Patagonia has lived by its core environmental values and has had a prominent voice in both large-scale and grassroots efforts worldwide. In 2017, Patagonia took a firm stance against President Trump and his order to deregulate protected monuments in Utah, which would potentially leave the land susceptible to mining and drilling. The company proceeded to publicly sue the President alongside other environmental organizations. Coined by itself as “The Activist Company,” Patagonia is a bold brand committed to corporate social responsibility and preserving the planet. The campaign explores the effectiveness of brand activism and whether the success can be replicated by other companies. It paints a picture of a communications campaign driven by a company’s political values rather than its sales, explores the repercussions, and brings to light a new precedent of brand activism in the near future.

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TABLE OF CONTENTS ABSTRACT ___________________________________________________________________ 2

TABLE OF CONTENTS __________________________________________________________ 3

INTRODUCTION ______________________________________________________________ 4

HISTORY OF PATAGONIA _______________________________________________________ 4

LEADERSHIP _________________________________________________________________ 5

MISSION STATEMENT __________________________________________________________ 6

VALUES _____________________________________________________________________ 6

TIMELINE ____________________________________________________________________ 7

PATAGONIA V. TRUMP_________________________________________________________ 8

SOCIAL MEDIA & CAMPAIGN VISIBILITY __________________________________________ 10

BUSINESS REACTION__________________________________________________________ 12

TRADITIONAL MEDIA RESPONSE ________________________________________________ 12

TAKING ON THE PRESIDENT ____________________________________________________ 13

COMPARING COMPANY VALUES ________________________________________________ 13

IMPACT ON EMPLOYEE MORALE ________________________________________________ 14

PAGE PRINCIPLES APPLICATION_________________________________________________ 15

FUTURE OF BRAND ACTIVISM __________________________________________________ 16

BIBLIOGRAPHY ______________________________________________________________ 18

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INTRODUCTION Patagonia is a company based in Ventura, Calif. that sells gear and clothes for outdoor activities including climbing, snowboarding and surfing. The company is perhaps most commonly known for its fleece outerwear, in regard to its product.

However, Patagonia is known for much more beyond its manufacturing of clothes. Patagonia actively participates in retail activism initiatives by advocating for environmental protection, among other causes. Its core values include four major concepts: build the best product, cause no unnecessary harm, use business to protect nature and not bound by convention. For the past 40 years, Patagonia has lived by these values and has had a prominent voice in both large-scale and grassroots efforts worldwide.

In 2017, Patagonia took a firm stance against President Trump and his order to deregulate protected monuments in Utah, which would potentially leave the land susceptible to mining and drilling. The company proceeded to publicly sue the President alongside other environmental organizations (Gelles, 2018). Additionally, this past December, Patagonia donated a $10 million corporate tax cut to several groups whose mission is to protect the planet (Mejia, 2018). These are among the many other environmental, social and political initiatives to which Patagonia is committed.

Coined by itself as “The Activist Company,” Patagonia is a bold brand committed to corporate social responsibility and preserving the planet.

HISTORY OF PATAGONIA Yvon Chouinard started climbing at a young age in 1953, which ultimately inspired him to create proper climbing equipment. At the time, the spikes he used to scale mountains, commonly known as pitons, were made of soft iron and could only be used once and then left behind. However, after he met with a Swiss climber who made hard-iron pitons, he began teaching himself how to make these reusable ones. Chouinard made a small business named Chouinard Equipment out of selling these pitons out of the back of his car as he continued to climb (Sirtori-Cortina, 2017). By the early 1970s, after a trip climbing in Scotland, Chouinard invested into also selling

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outdoor clothing and apparel. This apparel business has evolved into what is now Patagonia.

In 1989, Chouinard Equipment was forced into bankruptcy after several lawsuits from injured climbers who charged the company with a “failure to warn” about its products (Steiner, 2014). It culminated in one large lawsuit filed by the family of a climber who died using a Chouinard Equipment harness. Chouinard sold the company to his then partner Peter Metcalf and a group of investors for $900,000 (Steiner, 2014). The company has since been renamed Black Diamond Equipment and specializes in hiring engineers to create state-of-the-art technology in climbing equipment, including backpacks that could potentially save the lives of avalanche victims.

After Chouinard sold his climbing equipment business, he honed in on specific, non-traditional business values for Patagonia. Since 1984, the company has not had private offices and opened an on-site child care facility. Along with championing environmental issues around the world, Patagonia pushes for the universal use of organic cotton and continues to look for more environmentally-friendly fabrics for their products.

LEADERSHIP Patagonia’s leadership plays a defining role in the company’s activist tendencies. Founder Yvon Chouinard made a statement in 1985 following his decision to dedicate 1 percent of sales to grassroots organizations around the world. He built a business model whose sole mission is to serve the environment.

In 2008, he hired Rose Marcario on as chief operating officer and chief financial officer, where she reviewed Patagonia’s supply chain and production processes to cut down on waste and excess (Beer, 2018). She also spearheaded the integration of new environmentally friendly protocols, such as using recycled insulation, their Worn Wear program and Patagonia Provisions that handles regenerative organic agriculture through sustainable farming. Chouinard named Marcario chief executive officer in 2014, and her tenure has been marked by Patagonia taking politically active stances on prominent issues. Between the 2017 lawsuit toward President Trump, the 2018 Time to Vote Campaign, and a recent statement in 2019 that Patagonia will no longer be partnering with brands that do not share its mission of sustainability and environmental protection, Marcario has pushed the boundaries of business’

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involvement in social change (Feloni, 2019). As one of the 5 percent of female CEOs in the United States, Marcario has been a significant player in the shaping of Patagonia’s growing presence in these conversations.

MISSION STATEMENT First and foremost, Patagonia’s mission is to protect the Earth and to use all the resources they have to defend it at all costs. The company’s mission statement is as follows:

“We’re in business to save our home planet.” Patagonia also takes on any global issues against the environment, particularly

the current climate crisis. In order to do this, the company donates 1 percent of sales to help grassroots organizations worldwide.

VALUES Patagonia has four core values that articulate its purpose. The company claims that it is a company of rock climbers and surfers, who live a simple, minimalist life that’s based on utility. The following are Patagonia’s values, taken directly from its website: Build the best product

Our criteria for the best product rests on function, reparability, and, foremost, durability. Among the most direct ways we can limit ecological impacts is with goods that last for generations or can be recycled so the materials in them remain in use. Making the best product matters for saving the planet.

Cause no unnecessary harm

We know that our business activity—from lighting stores to dyeing shirts—is part of the problem. We work steadily to change our business practices and share what we’ve learned. But we recognize that this is not enough. We seek not only to do less harm, but more good.

Use business to protect nature

The challenges we face as a society require leadership. Once we identify a problem, we act. We embrace risk and act to protect and restore the stability, integrity and beauty of the web of life.

Not bound by convention

Our success — and much of the fun — lies in developing new ways to do things.

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TIMELINE Provided is a brief timeline of Patagonia’s most prominent activist statements between April 2017 and December 2018. This timeline includes not only an overview of its case against President Trump, but also actions taken in support of other environmental, social and political initiatives.

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PATAGONIA V. TRUMP The American Antiquities Act of 1906, signed into law by Former President Theodore Roosevelt, gives presidents the power to create national monuments. An excerpt of the law granting this right is as follows:

“That the President of the United States is hereby authorized, in his discretion, to declare by public proclamation historic landmarks, historic and prehistoric structures, and other objects of historic or scientific interest that are situated upon the lands owned or controlled by the Government of the United States to be national monuments, and may reserve as a part thereof parcels of land, the limits of which in all cases shall be confined to the smallest area compatible with proper care and management of the objects to be protected.” Under the Antiquities Act, Former President Barack Obama designated Bears

Ears National Monument as such at the conclusion of his presidency in December 2016, while Former President Bill Clinton designated Grand Staircase-Escalante Monument in 1996 (Eilperin & Fears, 2017). These Utah monuments’ designation protects culturally significant Native American land.

On April 26, 2017, President Trump signed an executive order that instructed Interior Secretary Ryan Zinke to review all national monuments created since Jan. 1, 1996 (Eilperin, 2017). At the time, Trump stated that “The Antiquities Act does not give the federal government unlimited power to lock up millions of acres of land and water, and it’s time that we ended this abusive practice,” and that this review would “end these abuses and return control to the people, the people of all of the states, the people of the United States.” (Eilperin, 2017). This prompted Patagonia to threaten to sue Trump under the argument that the Antiquities Act did not grant presidents the power to destroy them (Gelles, 2018). Then, on June 12, 2017, Zinke recommended the President to “revise the existing boundaries” of the current Bear’s Ears National Monument protections. This sparked backlash from not only Patagonia, but also Native American and environmental groups (Eilperin & Fears, 2017).

In December 2017, Patagonia waged a war against the major reduction of these two Utah national monuments. Trump’s order deregulated nearly 2 million acres of land, an 85 percent for Bears Ears and 47 percent for Grand Staircase. Patagonia, an active supporter of the monument since 2012, feared this action proposed by the

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Trump administration would open the door to mining and drilling in the area (Gelles, 2018). After hearing President Trump’s plans to officially deregulate the monuments, Patagonia turned the screen of its homepage black and wrote in large, stark letters, “The President Stole Your Land.” Below, the company wrote “In an illegal move, the

president just reduced the size of Bears Ears and Grand Staircase Escalante National Monuments. This is the largest elimination of protected land in American history.”

The company’s firm stance made waves on social media, where it included a call to action encouraging the public to share their disapproval of the President and take action. Still, some reacted negatively to the lawsuit and called it an attention grab for Patagonia’s clothing, and the hashtag #BoycottPatagonia trended (Gelles, 2018).

Patagonia’s case against President Trump also required extensive planning. The company threatened to sue months in advance of the official announcement on December 4 when Trump ordered the review of national monument designations. Following the April 26, 2017 executive order to review the status of national monuments in the past two decades, Patagonia’s legal team sprung to action and prepared for the potential lawsuit. By the time Trump declared a formal plan to deregulate these monuments, Patagonia was prepared to set its plan in motion (Gelles, 2018).

According to Patagonia’s 2017 Annual Benefit Corporation Report, the company affirmed its dedication to standing up for important issues, even if these

Figure 1: The Patagonia website homepage on Dec. 5, 2017

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issues enter the realm of politics. In the report, Patagonia states that “this may alienate some customers who don’t agree with our position or feel that Patagonia should stick to selling clothes and keep our opinions to ourselves. Activism and advocacy are critical to achieving our mission. We’ll always act, even if we lose some business along the way,” (Patagonia, 2017).

While Patagonia was already known for its political activism, particularly in the realms of environmental protection, labor standards and fair trade, it had never directly spoken out against a president.

Currently, the case is caught up in the courts. Patagonia filed five pending lawsuits in the U.S. District Court for the District of Columbia. The company is awaiting a decision on whether the case will proceed, which is expected by the end of 2019 (Patagonia, 2019).

SOCIAL MEDIA & CAMPAIGN VISIBILITY After the Trump administration threatened to take away the public lands from Bears Ears and Grand Staircase, Patagonia’s social media team posted a bold, black and white graphic calling out the president on all of its social media accounts on Dec. 4, 2017. These posts quickly went viral. Most notably, the post on Twitter outperformed an average Patagonia tweet by 642 times, with nearly 60,000 retweets and nearly 90,000 favorites. In the week period when Patagonia posted this graphic, the company received a 6.98 percent interaction rate, which pales in comparison to the outdoor clothing’s industry average of 1.88 percent interaction rate. This metric means that 6.98 percent of all people scrolling through their phones who came in contact with this post acted on it by either retweeting, favoriting or commenting. As the other visuals Figure 2: President Trump's only Twitter post

mentioning Bears Ears on Dec. 5, 2017. Source: Crowdtangle

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from Facebook and Instagram show, this post generated a significant amount of attention on all three platforms.

Once Patagonia issued this powerful statement, athletic apparel competitors such as REI and The North Face also made public statements regarding the issue. The following day, REI released a graphic and post geared toward the same issue of public lands and Bears Ears. This post also outperformed REI’s average interaction rate by 16 times. Also, while Patagonia issued a bold, serious graphic that accused the president of stealing, REI’s post had a less controversial and more supportive tone. Its caption included a heart emoji and did not include a call to action link like Patagonia’s did. On Dec. 5, 2017, President Trump tweeted a video about the monuments, which received 2.54 million views. He called the actions of the previous administration “presidential overreach” and claimed that he was restoring public lands in the hands of the people. The post underperformed, receiving 2,500 less retweets and 5,500 less favorites than an average tweet. This was the only statement released from President Trump regarding Patagonia’s accusation, and he has never tweeted the word “Patagonia” according to CrowdTangle, a social media measurement tool. While Patagonia’s campaign was met with a significant outpouring of support, there was a palpable negative sentiment throughout social media that rose with #BoycottPatagonia. Conservative bots

and fake Twitter accounts condemned Patagonia and tagged other accounts in order to gain larger reach. But, there were also real people and accounts that also made statements about the accusation towards President Trump. Conservative committeeman of the California Republican National Committee, Shawn Steel,

Figure 4: Patagonia's Twitter post performance on Dec. 4, 2017. Source: CrowdTangle

Figure 3: Patagonia's Facebook post performance on Dec. 4, 2017. Source: CrowdTangle

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tweeted about how Patagonia was pushing a liberal agenda and making attacks against the president, calling for others to boycott the company. Although there were a few alt-right accounts that made these statements, Patagonia did receive negative reactions from average people other than the extremist accounts, according to Meltwater, another social media listening and monitoring tool.

BUSINESS REACTION Patagonia is a private entity, so it is not required to disclose financial reports. The company does release its Annual Benefit Corporation Report for each full year. These reports primarily discuss company culture, employee benefits and activist initiatives, and do not include sales information (Patagonia, 2017). This could serve as a testament to how Patagonia does not prioritize sales over its activist ventures. This lack of information makes it difficult to gauge the success of the campaign from a business perspective, especially in the long-term. However, GQ reported that in the week after Patagonia’s lawsuit announcement, the company saw a six-time increase in sales. Patagonia declined to comment on its sales (Wolf, 2017).

TRADITIONAL MEDIA RESPONSE After Patagonia and REI released their statements regarding the protection of the Bears Ears National Park on Dec. 4, 2017, nearly every major newspaper and news outlet covered Patagonia’s bold statement toward President Trump within a day of the companies’ viral social media posts. The Denver Post emphasized the differences in approaches to the issue between Patagonia and REI. Other outlets like The Chicago Tribune and TIME Magazine used concise, impactful quotes from leaders of the company. The New York Times also conducted a notably in-depth investigative piece into the lawsuit and Patagonia’s politically active history.

Figure 5: A Denver Post story published regarding Patagonia's decision to sue President Trump. Source: CrowdTangle

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TAKING ON THE PRESIDENT

This is not the first time a company has taken a stance against President Trump since he assumed his role. For instance, in early 2017 many Silicon Valley tech companies spoke out after President Trump ordered an immigration ban for seven predominantly Muslim countries. Key players in the industry including Microsoft, Amazon and Expedia quickly became vocal about the industry’s roots to immigrants and the skills they bring to the table. These three companies even declared support of the Washington State Attorney General’s Office, which was responsible for taking Trump’s order to federal court. Other prominent companies that expressed concern over the ban and its potential repercussions included Facebook, Google, Apple, Nike and Starbucks (NYT, 2017).

As President Trump continues to target corporations during his presidency, they keep fighting back. According to a Washington Post analysis of whether these businesses should fear President Trump’s behavior, he is different from past presidents in his attacks. The article points out that “unlike Roosevelt, Kennedy or Obama, Trump’s presidency comes with a credibility problem that undermines most of his statements. He changes his mind so often that it’s hard to trust any of his pronouncements will become policy,” (Moore, 2018).

This lack of credibility may actually benefit those who choose to be on his “enemies list.” In addition, while presidents have historically called out select private businesses to impact major policy, many of Trump’s targets are personal. For example, he targeted Nordstrom after the company dropped Ivanka Trump’s clothing line, and he targeted Time Warner after CNN offended him (Moore, 2018).

Ultimately, the companies President Trump targets, often via Twitter, typically see some amount of stock market damage. Nonetheless, the impact tends to be short-lived as the companies rebound quickly (Reuters, 2017). In fact, some of these companies experienced a reverse effect where their stock value rose, according to The Wall Street Journal’s “Trump Target Index,” (Moore, 2018).

COMPARING COMPANY VALUES While Patagonia and REI carry similar products and share the same audience demographic, the reflect different company values. Patagonia is an activist company that emphasizes protecting the environment. In comparison, REI is a co-operative with the purpose to “awaken a lifelong love of the outdoors, for all.” REI’s brand

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promise is to provide customers with durable apparel and equipment that will last, and that they will help get them outside more. REI’s core values include investing into the co-operative community, top-quality gear and apparel, no outside shareholders and to go outside.

Coinciding with these company values, in 2015 REI started its #OptOutside campaign. With this campaign, REI closed its stores on Black Friday and urged employees and customers to spend the day outside adventuring. The campaign has continued for the last four years among all of REI’s social media accounts. These posts have outperformed the company’s average social media posts on Instagram, Facebook and Twitter. This campaign is also heavily user-generated, which means that REI shares content from its audience to spread awareness.

In 2016, the campaign took home nine advertising awards at the Cannes Lions International Festival of Creativity (Coffee, 2016). The campaign was so successful that it prompted other companies, such as Subaru and Google, to consider shutting down for Black Friday as well. After the first year of the campaign in 2015, Patagonia responded with donating all of their sales on Black Friday, approximately $10 million, to grassroots organizations around the world (Leighton, 2018). REI continues to press the #OptOutside campaign and find new and innovative ways to surpass Patagonia and other competition. For Black Friday 2018, REI announced a partnership with Lyft, where the company would offer free rides to local parks in 10 U.S. cities (Nudd, 2017).

IMPACT ON EMPLOYEE MORALE Patagonia’s employees seem generally satisfied working for the company. Looking at its company page on Glassdoor, 85 percent of employees approve of CEO Marcario while 82 percent have a positive business outlook of Patagonia. Meanwhile, Marcario has a 99 percent approval rating among employees at the Ventura headquarters. In regard to the Figure 6: Employee satisfaction ratings among all Patagonia

employees. Source: Glassdoor

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company’s culture and values, it earned 4.7 stars out of five at the Ventura office and 4.5 stars out of five overall. One current employee of over 10 years calls Patagonia “great for values driven people.” Specifically, they say that “the company does live by its mission statement and if you are an environmentalist and values driven person, you’ll feel good about working for Patagonia.” Another current employee said that “the culture and reasons for doing business are something you can stand behind.” A former employee called Patagonia a “tremendous brand with great values.” Ultimately, most current and former employees shared positive feelings toward Patagonia’s commitment to its mission statement and listed the company’s environmental activism as a “Pro.”

PAGE PRINCIPLES APPLICATION The Arthur W. Page Society, the world’s leading professional association for senior public relations and corporate communications executives, addresses seven principles that encompass the highest standards for public relations professionals. Of the seven principles, two of them strongly relate to Patagonia’s mission of activism and social responsibility. Manage for Tomorrow

When Patagonia first learned of the possibility that the Trump administration could take away from the public lands of Bears Ears, the company immediately gathered its legal team together to prepare for a lawsuit. Whether or not President Trump went through with the executive order, Patagonia wanted to be prepared and proactive to take swift and meaningful action. The company also had its graphic designers create the graphics for social media, as well as the black screen for the website’s landing page, so that it would be ready for the moment that Trump announced this reduction in public lands.

Figure 7: Employee satisfaction ratings in Patagonia's Ventura headquarters. Source: Glassdoor

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Patagonia has also been proactive in its political statements throughout its involvement in the 2018 Time to Vote campaign, closing their stores on Election Day, donating their tax returns to grassroots organizations and endorsing political candidates. Prove it with Action

Patagonia is extremely vocal about its identity and which values it represents. Throughout its history, the company has not only consistently voiced this mission, but also practiced it. As mentioned earlier in the case, Patagonia has pledged 1 percent of sales to the protection of the natural environment since 1985. Since its inception, it has donated nearly $90 million to grassroots organizations. Patagonia also works to combat climate change around the world and aid victims of natural disasters as an Americares Emergency Response Partner through financial resources and volunteering. One of its newer technologies, the Patagonia Action Works program, helps consumers easily find grassroots organizations they can help in their local communities so to participate in its mission to protect the environment. Patagonia also spends significant amounts of money creating documentary films based on environmental issues worldwide. In 2013, Chouinard claimed that the company spent $500,000 creating the documentary film “DamNation” about the tearing down of obsolete dams in the U.S. (Mochari, 2015).

FUTURE OF BRAND ACTIVISM

As Patagonia acts on its own activist ventures, other companies have done the same in the context of their industries and consumers. In recent years, prominent companies such as Pepsi, Dick’s Sporting Goods and Gillette are among the many that have tried to take a stance on social and political issues. While some campaigns are far more successful than others, their actions depict an increased trend in brand activism. In 2017, Pepsi created a short film starring Kendall Jenner in which she helps end a fabricated police protest by handing a police officer a Pepsi soda. Because Jenner had never participated in social causes before the video, it came off as inauthentic and strange for Pepsi to have chosen her for this film (Nittle, 2018). Pepsi also depicted the end of police brutality in a simple and easy fashion, instead of giving weight to the complexity of the issue. Widespread outrage ensued after the video was released and Pepsi made a formal apology.

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In February 2018, following the Parkland shooting in Florida, Dick’s Sporting Goods decided to ban assault-style weapons and to stop selling guns to anyone under the age of 21, specifically because Parkland shooter Nikolas Cruz had purchased a gun from a Dick’s Sporting Goods (Hafner, 2019). Despite Dick’s Sporting Goods taking a stance on a social issue that directly impacted its brand, several of its shareholders and target audience members did not share the same sentiment. Three major gun companies announced they would no longer be working with the retailer and the National Rifle Association also revoked Dick’s membership (Nittle, 2018). In January 2019, Gillette released an advertisement addressing toxic masculinity and the #MeToo movement by claiming their new slogan should upgrade from “The Best a Man Can Get” to “The Best a Man Can Be.” The advertisement received 13 million views on Twitter and a slew of mixed reviews (Berkowitz, 2019). Celebrities such as Elijah Wood, Rainn Wilson and Billie Jean King applauded the brand for its stance on the issue, while several Twitter users saw the advertisement as an attack on men. According to Gillette’s brand director Pankaj Bhalla, the company expected the video to spark conversation amidst the positive and negative reviews (Berkowitz, 2019). Many of these companies attempt to raise awareness on social justice issues faced immediate reactions from their audiences through social media and traditional news coverage. Only time will tell whether or not their campaigns, deemed successful or not, will make a significant impact on their brand reputation and business in the long run. Patagonia, which made a direct accusation toward President Trump, endorsed Democratic Senator candidates and donated a $10 million tax return to local organizations in 2018, rising to an entirely different level of social responsibility. While it’s clear that social activism is a rising trend in the corporate world, in the coming years, it will become apparent whether Patagonia is a trendsetter or the exception to the rule.

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