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Patagonia Political Activism at the Center of a Company’s Communication Strategy By Alex Wolfe and Mikala Morris

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Page 1: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

PatagoniaPolitical Activism at the

Center of a Company’s Communication Strategy

By Alex Wolfe and Mikala Morris

Page 2: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

Rundown

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➝ Overview of the Case➝ Applications of Page Principles➝ Analysis of the Learning Objectives

⇾ Proactive Planning⇾ Social Media & Campaign Visibility⇾ Taking a Stance against Political

Figures⇾ Comparing Company Values

➝ Class activity➝ Class discussion➝ Wrap-up

Page 3: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

The Activist Company

➝ Founded by a rock climber in 1973, Yvon Chouinard

➝ Has donated nearly $90 million to grassroots organizations

➝ Advocate for climate change and other environmental issues

➝ Aid natural disaster victims worldwide

➝ Gives back 1% of sales to the planet

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Page 4: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

Quick History➝ Chouinard started a business

named Chouinard Equipment by selling pitons out of his car

➝ Started selling outdoor clothing and apparel after buying a rugby shirt - turned into what is now Patagonia

➝ Chouinard Equipment was forced into bankruptcy after several lawsuits

➝ Chouinard sold the company for $900,000

➝ Focused on Patagonia and non-traditional business model for creative thinking 44

Page 5: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

Leadership➝ Chouinard decided in 1985 to

dedicate 1% of sales to grassroots organizations

➝ Hired Rose Marcario as COO and CFO, who has reviewed its supply chain and production processes to cut down on waste and excess

➝ Marcario spearheaded new protocols, such as using recycled insulation, their Worn Wear program and Patagonia Provisions

➝ Marcario named CEO in 2014, one of 5% of female CEOs 55

Page 6: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

Timeline of Activism (2017-present)

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Trump orders review of national monument designations; Patagonia threatens to sue

After review, interior secretary recommends that Trump Administration shrinks Bear’s Ears

Trump announces formal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue

April 26, 2017

June 12, 2017

Dec. 4, 2017

Sept. 2018

Patagonia endorses Democratic senator candidates - Jacky Rosen of Nevada and Jon Tester of Minnesota

Oct. 2018

Patagonia supports “Time to Vote” campaign to increase voter participation

Nov. 28, 2018

Patagonia donates $10 million tax cut toEnvironmentalorganizations

Page 7: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

Patagonia v. Trump➝ Trump deregulates

protected monuments in Utah

➝ Patagonia publicly combats Trump

➝ Files lawsuit for breaching Antiquities Act of 1906

➝ New York Times article

http://bearsears.patagonia.com/

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Page 8: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

Business Response

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➝ Patagonia is a private entity that does not disclose its annual sales

➝ Immediate uptick in sales for Patagonia but the long-term business impact following Patagonia v. Trump is still unknown

➝ Chouinard and Marcario have declined to comment on Patagonia’s sales in traditional news coverage

Page 9: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

Proactive Planning

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Page 10: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

Patagonia’s Planning Process

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➝ Patagonia started planning lawsuit months in advance, before the order was made

➝ Worked with other organizations over environmental litigation

➝ On day of announcement, calls made with D.C. lawyers, paperwork filed, website homepage created

Page 11: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

Social Media & Campaign Visibility

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Page 12: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

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Page 13: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

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Facebook CrowdTangle Leaderboard (12/3/2017-12/10/2017)

Page 14: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

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Page 15: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

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Twitter CrowdTangle Leaderboard (12/3/2017-12/10/2017)

Page 16: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

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Interactions on Facebook

Interaction Rate on Twitter

Followers On Facebook

Page 17: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

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#BoycottPatagonia

Page 18: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

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Patagonia’s Social Media Growth: 1 Year OutDec. 2017-Dec. 2018

Facebook22% Growth

Twitter8% Growth

Instagram17% Growth

Page 19: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

Taking a Stance against Political Figures

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Page 20: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

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Page 21: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

Taking on the President

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➝ Founder called Trump Administration “evil” on CNN

➝ Didn’t see suing Trump as a choice➝ Patagonia had always been involved

with grassroots efforts, but this was its first time combatting the President

➝ Despite involvement with environmental activism, this type of legal effort was new to Patagonia

Page 22: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

Comparing Company Values

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Page 23: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

Activism at the Heart

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Patagonia REIPurpose: “We’re in business to save our home planet”

➝ Brand promise: supporting them means supporting the environment

➝ Core values⇾ Minimalist style⇾ Build the best

product⇾ Cause no

unnecessary harm⇾ Use business to

protect nature⇾ Not bound by

convention

Purpose: “Our purpose is to awaken a lifelong love of outdoors, for all”

➝ Brand promises: sustainable gear built to last, get outside with REI

➝ Core values⇾ Invest into the

cooperative community

⇾ Top-quality gear and apparel

⇾ No shareholders⇾ #OptOutside

(Purpose before Profits)

Page 24: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

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#OptOutside

Page 25: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

Manage for Tomorrow

Page PrinciplesProve it with Action

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➝ Patagonia had legal team standing by and prepared for President Trump’s possible actions

➝ Graphic designers built the black homepage design ahead of time

➝ Proactive in political stances⇾ “Time to Vote”

Campaign⇾ Closed on

Election Day⇾ Tax return⇾ Endorsing

candidates

➝ Pledges 1% of sales to the protection of the natural environment

➝ Has donated nearly $90M to grassroots organizations

➝ Aids victims of natural disasters as an Americares Emergency Response Partner

➝ Patagonia Action Works program helps consumers easily find grassroots organizations they can help in their local communities

➝ Creates documentary films based on environmental issues around the world

Page 26: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

Class Activity

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Page 27: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

Discussion

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➝ Would Patagonia’s campaign have succeeded without its robust planning?

➝ What role did social media play in the success of Patagonia’s campaign?

➝ Was it too risky to take on the President for the sake of company values?

➝ When is it best for a company to be a leader? A follower?

➝ How do you think brand activism will evolve over the next five years?

Page 28: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

Questions?

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Page 29: Patagoniaformal plan to reduce regulation; Patagonia’s legal team sets plan in motion to sue April 26, 2017 June 12, 2017 Dec. 4, 2017 Sept. 2018 Patagonia endorses Democratic senator

Photo Credits & Sources

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➝ https://www.gq.com/story/patagonia-versus-donald-trump

➝ https://www.sciencemag.org/news/2017/04/science-and-politics-

collide-over-bears-ears-and-other-national-monuments

➝ https://www.nytimes.com/2018/05/05/business/patagonia-trump-

bears-ears.html

➝ Crowd Tangle

➝ https://bit.ly/2ZxLZ0r

➝ http://www.outdoorinov8.com/compass/compasslogos.html

➝ https://www.cnbc.com/2016/12/23/founder-of-patagonia-fishes-

half-the-year-tells-his-employees-to-surf.html

➝ https://www.lifteconomy.com/blog/2016/6/20/rose-marcario-

patagonias-ceo-on-climate-change-regenerative-agriculture-and-

business-for-good