Billionaire Owner of Patagonia Donates Company
Patagonia’s billionaire owner, who announced Wednesday that he will give away the entire company to counteract climate change, is setting a new example in corporate environmental leadership.
As the founder of Patagonia, Yvon Chouinard, who transformed his passion for rock climbing into one of the world’s most successful sportswear companies, is giving his entire company to a unique trust and non-profit organisation, designed to dedicate all of its profits to saving the environment.
With the help of his wife, two children, and lawyers from Patagonia, Chouinard was able to create an organisational structure which will allow the company to continue to operate as a for-profit entity, with all proceeds going to environmental causes.
In addition, Chouinard’s family donated 2% of the company’s stock and all decision-making authority to a trust that will oversee the company’s mission and values. Approximately 98% of the company’s stock will be donated to a non-profit organisation called Holdfast Collective, which will use every dollar received to combat the environmental crisis, protect nature and biodiversity, and support thriving communities as quickly as possible.
As a feature of the organisation’s obligation to battle the natural emergency, Patagonia will circulate cash made subsequent to reinvesting in the business to the not-for-profit every year.
As expressed in the proclamation, the design was made to keep away from the organisation being sold or taken public, which would have implied an adjustment of the organisation’s qualities.
Patagonia’s new bearing is intended to set a model that discredits the old investor free enterprise aphorism that corporate objectives other than benefit will simply confound financial backers, composed Patagonia board seat Charles Conn in an assessment piece in Fortune magazine on Wednesday.
Chouinard and Patagonia have for some time been ground breakers in natural activism and worker benefits. In its almost 50 years in activity, the Ventura, California-based organisation has been known for broad advantages for representatives, remembering for site nurseries and evenings off on great surf days.
During the 80s, the organisation started giving 1% of its deals to natural gatherings, a program formalised in 2001 as the “1% for the Planet Plan”. The program has come about in $140m in gifts for safeguarding and reclamation of the common habitat, as per the organisation.