Question

Values Rule at Patagonia

Patagonia is a California-based company that makes clothing and gear for outdoor sports like hiking and

climbing. It has been called “The Coolest Company on the Planet” and it has a consistent track record of

being voted one of the best companies to work for. Patagonia employees are among some of the most

passionate and long serving in the industry. In fact, with an annual turnover rate of only 4 percent, so few

people leave the company that job seekers are hard pressed to find any opportunities. However, when

the company does have a position to fill, it goes about selecting candidates very carefully.

Patagonia places its commitment to protect and preserve the environment and its resources over

anything else. This mind set is what drives the company and the people who work there. As Casey

Sheahan, CEO and president of Patagonia, observes, “It is critical that our employees, whether they are

new hires or long standing employees, are totally in line with our philosophy and values.” It is not enough

for an applicant to simply enjoy outdoor activities. Patagonia looks for employees who are fanatical about

protecting the environment and who are passionate about their hobbies and interests. The company looks

carefully at the values, attitudes, and behaviours of potential employees in an effort to bring in new talent

that will help the organization as a whole and be truly representative of the Patagonia brand.

Patagonia uses a hiring process that is a mixture of both traditional and nontraditional approaches.

Résumés are reviewed and sorted, and candidates are screened in-person and over the phone.

However, in order to find an employee who will be the best fit for the organization, candidates also

participate in extensive group interviews. The purpose of this strategy is to learn as much about the

candidate’s background as possible. As Lu Setnika, human resources director at the company, explains,

group interviews provide an opportunity for Patagonia employees to test and assess whether or not a

candidate would be comfortable working within the organization’s value-driven and collaborative culture.

By having a number of informal conversations together, both the company and the candidates take time

to get to know each other. This helps Patagonia maintain a base of employees who are highly engaged

and who identify with the organization on an emotional level.

Patagonia’s mission statement is to build the best product, cause no unnecessary harm, and use

business to inspire and implement solutions to environmental crises, and this mission drives the

company’s corporate strategy. The apparel and gear made by Patagonia employees are secondary to the

company’s commitment to resolving environmental issues. Jill Dumain, Patagonia’s director of

environmental analysis, explains that the return on investments with environmental protocols is actually a

much more efficient way of doing business from a cost standpoint. The company harnesses the strengths

and potential of customers who are aware of the plight of the environment and willing to take action. In

this way, Patagonia promotes and encourages a lifestyle that honours nature, wildlife, and biodiversity.

As illustrated in its Common Threads Initiative Video, Patagonia’s message is very clear: The planet’s

resources are being depleted at a level that cannot be sustained. Urgent change is needed to allow

nature time to heal. With these facts in mind, the company urges customers to think carefully and buy

only what they “deeply need” and not “vaguely want.” Company founder, YvonChinourd, explains that

“We are the first company to ask consumers to take a formal pledge and be partners in the effort to

reduce consumption and keep products out of the landfill or incinerator.” Patagonia’s Common Threads

Pledge states that Patagonia agrees “to build useful things that will last, to repair what breaks and recycle

what comes to the end of its useful life.” Customers who take the pledge agree “to buy only what [they]

need and will last, repair what breaks, reuse (sell or share) what [they] longer need and recycle

everything else.”

Following its belief that recycling is one key factor in sustaining the environment, Patagonia partnered

with eBay to create its Common Threads Initiative Store. This new approach enables and encourages

customers who have taken the Common Threads Pledge to take an active role in the partnership.

Patagonia says it will not receive any of the profits associated with the Common Threads Initiative

Storefront.

Patagonia recognizes and supports employees who engage in projects as environmental activists. In

1993, the company started its Patagonia Employee Internship Program. It provided staff with an

opportunity to leave their jobs for up to four weeks to work for an environmental group they identified with.

Patagonia agreed to provide full pay and benefits to employees during their absence from the company.

More than 850 employees have taken part in the program. Interns have helped to protect sea turtles in

Kenya, pika in Colorado, and sage grouse in Nevada. Employees who participate in the program further

strengthen Patagonia’s mission. Their stories and experiences help to inspire other employees and in the

process work to enrich and strengthen Patagonia’s collaborative culture. In some cases, employees leave

the company to concentrate all of their efforts on preserving the environment. Patagonia applauds

employees who leave the company to devote all of their time in support of environmental initiatives. The

company views these kinds of employee resignations as organizational successes.

On April 20, 2010, BP’s Deepwater Horizon oil rig exploded in the Gulf of Mexico. That began what is now

known as the biggest oil spill in history, with at least 185 million gallons of crude pouring into the Gulf.

Patagonia responded to the disaster by sending seven teams of employees to seven communities in the

Gulf. For one week, employees went door to door and asked residents along the coast in southern

Louisiana towns how the oil spill had impacted them in terms of health, culture, and finances. Information

from the survey helped to create a web-based Oil Spill Crisis Map that the government and wildlife

agencies could use to document the impact of the disaster.

Patagonia’s organizational culture places it in a leading role as a company devoted to the preservation

and protection of the environment. Its unique approach of using and uniting its employees and customers

in pursuit of its mission offers hope and guidance to others who seek to live as citizens of the earth.

Discussion Questions

1. Explain the difference between “values,” “attitudes,” and “job satisfaction.” How does each pertain to Patagonia and its employees? Give examples.

2. What is the difference between terminal and instrumental values? Which of the terminal andinstrumental values apply to Patagonia’s employees?

3. Patagonia experiences a high level of organizational commitment from their employees, which isdemonstrated by their low annual turnover rate of 4 percent. Describe the three types of organizational commitment and explain how each pertains to Patagonia.

4. Patagonia gives employees paid time off to pursue their environmental passions. From a businessperspective, do you think this is a good idea or not? How do you think it impacts Patagonia as anorganization? Explain.

5. Patagonia has incorporated group interviews into their hiring process as they feel this is a good way “to assess whether or not a candidate would be comfortable working within the organization’s value driven and collaborative culture.” Do you agree with this assessment? Explain.

Answer 1

ANSWER : 1

VALUES- Value represents basic convictions that:

A specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence. Value is a judgemental element of what is right, good, or desirable.

whereas,

ATTITUDE: Attitude is defined as "a learned predisposition to respond in a consistently favorable or unfavorable manner with respect to a given object".That is, attitude affect behavior at a different level than do values...

JOB SATISFACTION: Job satisfaction essentially reflects the extent to which an individual likes his or her job.

Formally defined, job satisfaction is an affective or emotional response toward various facets of one's job...

Patagonia 's employees are judged on an emotional level and who understands nature well and passionate about giving goodness to the environment they get to interact on a formal and informal level and understanding at the personal level to both employee and company made Patagonia a successful company. This way, Patagonia promotes and encourages a lifestyle that honors nature, wildlife, and biodiversity.

ANSWER:2

TERMINAL VALUE: It is desirable and end-states of existence the goals that a person would like to achieve during his or her lifetime.

but,

INSTRUMENTAL VALUE: Instrumental value is preferable modes of behavior or means of achieving one's terminal value.

The terminal and instrumental values apply to the employees of Patagonia are:

TERMINAL - A sense of accomplishment (lasting contribution)

A world at the beauty (the beauty of nature and the arts )

Happiness(contentedness)

An exciting life(a stimulating, active life)

INSTRUMENTAL VALUES: Ambitious(hardworking, aspiring)

Capable(competent,effective)

Intellectual(intelligent &reflective)

ANSWER:3

Three types of organizational commitments are:

1- Affection for your job("affective commitment"). - This commitment is related to Patagonia in a way because employees who work for Patagonia are there in that company for years. Affection for a job occurs when you feel a strong emotional attachment to your organization, and to the work that you do.

2-Fear of loss("continuance commitment") - This type of commitment occurs when you weigh up the pros and cons of leaving your organization. You may feel you need to stay at your company because the loss you would experience after leaving the company is greater than the gain in a new role. Because Patagonia was one of the top-notch companies with good working environment which is hard to find anywhere else.

3-Sense of obligation to stay("normative commitment") - This type of commitment occurs when you feel a sense of obligation to your organization, even if you are unhappy in your role, or even if you want to pursue better opportunities. You feel that you should stay with your organization because it's the right thing to do.

ANSWER 4

Yes, this step of Patagonia is much more commendable because everyone is becoming environment friendly so this step of Patagonia can land it to goodness. When a business uses energy-efficient lighting, heating, and cooling, reduces its water use, recycles office materials, uses recycled materials, and creates less waste, it generates positive public relations in its community and industry and with customers. It can advertise itself as a green company.

It increases the long term survivability of the company in market.

Reducing the environmental impact of business will improve the sustanibility of your business.If you company is less dependent on man made.

ANSWER 5

Patagonia has incorporated group interviews into their hiring process as they feel this is a good way “to assess whether or not a candidate would be comfortable working within the organization’s value-driven and collaborative culture.” Yes, obviously this is the best way to examine candidates because humans use to compete with each other when they use to work or perform in the group.

In group interview one can examine who much initiative one take to drag others back because it shows the leadership quality of the person.

One can also see how candidates interact with each other under a high-pressure setting. It's a great way to compare and evaluate their competitive strength.

It also reduces the bias of questions put up before candidates individually.