Patagonia is an outdoor clothing and equipment company known for its commitment to environmentalism and ethical business practices. It has over 21,000 employees across 39 stores in 7 countries. Patagonia's mission is to create the highest quality products while minimizing environmental impact. It trusts employees to act responsibly and provides benefits like on-site daycare, generous paid time off to volunteer, and tuition reimbursement. This empowers workers and builds loyalty, demonstrating Patagonia's view of employees as valuable human capital rather than problems to manage. The company founder Yvon Chouinard has become a role model for 21st century management with his focus on sustainability, social responsibility, and respect for employees.

1. Patagonia Inc.
A Passion for the Planet
“Most people want to do good things, but don’t.
At Patagonia, it’s an essential part of your life”
-Yvon Chouinard-

2. Overview Patagonia
²Patagonia Inc., is seller of outdoor clothing and
equipment that has a reputation as an enlightened
employer and champion of the environment
²1,275 employees, 39 stores in 7 country.
²Mission Statement : Build the best product, cause no
unnecessary harm, use business to inspire and
implement solutions to the environmental crisis.
²Have ambitious goals that trust their employees to do
the right thing, and give them tools and time they need
to do it

3. Question 1
What role, if any, does McGregor’s Theory Y play at Patagonia? Explain
Theory X vs Theory Y
Ø Most people dislike work
and want to avoid it
Ø People require close
direction
Ø People want to avoid
responsibility and have
little ambition
Ø Work is a natural activity
Ø People can be self-directed if they
are committed to the objective
Ø Rewards help commitment
Ø Most employees accept and seek
responsibility
Ø Employees have imagination,
ingenuity and creativity

4. Question 1
What role, if any, does McGregor’s Theory Y play at Patagonia? Explain
Work is a natural activity
• Patagonia is the company that stress continuous improvement and
being way better competition but also make people feel
comfortable
• Patagonia offers an on-site day-care center at its headquarters and
full medical benefits to all employees, including part-timers
People can be self-directed if they are committed to the objective
• “Most people want to do good things, but don’t. At Patagonia, it’s
essential part of your life”
• Patagonia Inc, a seller of outdoor clothing and equipment that has
a reputation as an enlightened employer and champion of the
environment

5. Question 1
What role, if any, does McGregor’s Theory Y play at Patagonia? Explain
Rewards help commitment
• The company raised salaries only to adjust for the cost of living,
and everybody gets an annual bonus based on profits, but, overall,
Patagonia pays at, or just slightly above, the market rate
• Patagonia held a program that allows employees to take off up to
two months
Most employees accept and seek responsibility
They are meritocracies with ambitious goals that trust their
employees to do the right thing and give them the tools and time
they need to do it
Employees have imagination, ingenuity and creativity
Patagonia’s culture makes it a magnet for a talented people

6. Question 2
How does Patagonia build human and Social Capital
Human Capital the productive
potential of an individual’s
knowledge and actions
Fact:
Patagonia pays 50% of Lisa Myers’
college expenses as she pursues a
wildlife biology, saying “It’s easy
to go to work when you get paid
to do what you love to do”
Social Capital productive potential
resulting from strong relationships,
goodwill, trust, and cooperative
effort
Fact:
• Patagonia offers an on-site day-
care center at its headquarters
and full medical benefits to
employees, including partimers
• Patagonia allows employees to
take off up to two months at full
pay and work for environmental
groups

7. Question 3
How does this case bring the profile of the 21st-century manager life
Primary Role Past Managers Future Managers
Cultural Orientation Monocultural,
monolingual
Multicultural, multi-
lingual
Source of influence Formal authority Technical knowledge and
interpersonal skill
View of people Potential problem Primary resource; human
capital
Decision-making style Limited input for
individual decisions
Broad-based input for
joint decisions
Ethical considerations Afterthought Forethought

8. Primary Role Future Managers Patagonia Role
Cultural Orientation Multicultural, multi-
lingual
Multicultural
Source of influence Technical knowledge
and interpersonal skill
We can easily appliesd from
Patagonia’s experiance : to think
outside the box, sametimes you
need to get out of the cubicle.
View of people Primary resource;
human capital
• One – site day care center at headquarters
• Medical benefit.
• Patagonia provide a program that allows
employee to take off up to two month at
full pay and work for environmental group.
• Patagonia also pays 50% tuition
educational degree.
Decision-making
style
Broad-based input for
joint decisions
Patagonia trust employee to do the
right thing and give them the tools
and time they need to do it
Ethical
considerations
Forethought Green philosophy
To produce the highest quality
products while doing the least
possible harm to the environment

9. Question 4
Which of the seven moral principles appear to be in force at Patagonia?
Honesty & Dignity of human life
Patagonia Inc has a reputation as an enlightened employer and champion of environment,
and they committed to translate their values to a set of guide in every decision and
centerpiece of a management practice.
To enlight their employer, they see employer as a human that have dignity in life such as
manager try to motivate employees with kind words and generous benefits. They also trust
their employees to do the right thing – and give them the tools and time they need to do it.
While to commit as champion of environment, they donate 1% of revenues to environmental
groups. The company also pays 50% of her college expenses as she pursues a wildlife biology
degree. They said that : “It’s easy to go to work when you get paid to do what you love to
do”
However, the most significant rewards aren’t monetary. One popular perk is a program that
allows employess to take off up to two months at full pay and work for environmental
groups.

10. Question 4
Which of the seven moral principles appear to be in force at Patagonia?
Fairness
It’s reflected by giving on site day care center at its headquarters and full
medical benefits to all employees, including part timers. The company
recently raised salaries to adjust for the cost of living and everybody gets
an annual bonus based on profits. But overall, Patagonia pays at or just
slighlty above the market rate.

11. Question 5
What appeals (or does not appeal) to you about working at Patagonia?
Trust employee to do the right thing
Take off two up to two months at full pay
and work for environmental group
Green company that’s driven by values
Full medical benefits

12. Question 5
What appeals (or does not appeal) to you about working at Patagonia?
… the best
collaboration team

13. Yvon Chouinard
• Yvon Chouinard (a founder of
patagonia) became a role
model at 21 st century
manager.
Patagonia
Magic
He introduced a new idea such as :
Green filosophy.
Human capital.
Sustainable business practices.
Continuous improvement.