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Business Ethics Assignment: Case Analysis of Patagonia

Question

Task: To complete this business ethics assignment task, it uses a problem-oriented case study format and requires a response of no more than 2500 words.
1) Identify and critically evaluate the issues Patagonia’s approach to business raises from a business ethics and sustainability perspective with particular reference to supply chain management, human rights and climate change.

2) When considering environmental and social objective, what are the interdependencies between shareholder value and sustainable value that Patagonia needs to consider achieving competitive advantage.

3) Identify both the strategic and operational/practice dimensions involved in implementing Patagonia’s approach in other businesses.

4) Identify the opportunities and challenges which are inherent in addressing the ethics and sustainability issues within this industry.

Answer

Introduction
Sustainability is a major element explored in the present context of business ethics assignment that is being effectively determined through the scope of generating a larger level of capacity that can be undertaken. It is being brought to light and is focussed upon more in the case of the recent market due to the emergent global trends regarding the same. It is ascertained from the case of the market that the global sustainability elements are in coherence with requirements that are to be developed and generated effectively. It is determined that this needs to be ensured through a larger scope and additionally, also this study looks into the case of Patagonia for deriving the same. It takes a look into the ethics and sustainability of the company and the different elements involved.

1. Identification and evaluation of Patagonia’s business approach to ethics and sustainability
Business ethics in the company of Patagonia is defined widely by numerous different stances that can be drawn out. Initially, in the case of the supply chain of the company, it is determined that the company sought to draw on materials that were not in the respective portfolio of other businesses. Verbekeet al. (2018), indicate that sourcing waste materials are an essential element and method through which a company is able to generate supply chain sustainability. Thus, it can be ascertained that the company of Patagonia sought to undertake a circular model of business through which it could generate a suitable scope and potential for the development of major resources.

The company’s circular model as evidenced by Bosch-Badiaet al. (2018), indicates that sustainability-based innovation is a key aspect that has led to the development of the business of Patagonia to such a large extent. It is determinative from the context of the same, that the company is able to generate a larger level of capacity through means of sustainable development projects that it can incorporate in its systems. In such a scenario the implementation of waste recycling methods is a key business process geared for generating sustainability and developing a significant rate of potential for the business as well.

Drawing from the sustainable sourcing methods followed by the company, it is also determinative that the company functions in a wide range of areas apart from this as well. It can be determined from the case of Jordan and Kristjánsson. (2017), that the determinative element of developing a sound potency for climate preservation is important for ethics in sustainable business. This is because the recent focus on the climate has increased significantly and environmental preservation is also an essential element. It can be vivid that the company of Patagonia pays close attention to this component of their business through operations and projects geared towards the achievement of the same.

Additionally, it can be understood that the company of Patagonia is able to generate a larger level of effectiveness as evidenced from the case of the element of retracting its business to preserve the environment overall. It can be ascertained that the company ceased the production of specific equipment once identified that a major problem of environmental degradation was occurring due to the same. Schuler et al. (2017), indicates that the importance placed on the case of the environment and keeping business environmentally compliant is what defines business sustainability and ethics. Thus, it can be ascertained that the company functioned in a very ethically responsive and responsible manner.

In addition to this, it can be viewed that the human rights element of the company is also aligned to the scope of its sustainability scope. It can be viewed that businesses need to become sustainable through a 360-degree purview for them to be ethical. In the company of Patagonia, it can be ascertained that the firm essentially generated a larger prospect of effectiveness through the means of ensuring a diverse culture and gender equality practices before other market players. Muntheet al. (2021), stated that the need for diversity is optimal and workplaces need to be inclusive in nature. Thus, it can be ascertained that for the case of the company of Patagonia there is a higher element of efficacy that is implemented through this element. The company has also been very receptive to the need for women. It can be ascertained that the company has allowed maternity leaves and rejoining after maternity leave to its new employees since the very beginning of operations. This has enabled a workplace culture that is positive and productive. Thus, it can be viewed that the stakeholders of the company are satisfied and this is prone to increasing the overall productivity of the business as well.

2. Interdependence of shareholder value and sustainability value
In the case of the values of different elements within the context of sustainability, it can be certain that shareholder value and the suitability value are often liked. Garcia and Sanz (2018), indicates that the link between sustainability and the shareholders can be derived through the three-nested dependencies model where the shareholders may also be the economic benefactors as well as social stakeholders for a company. Under such circumstances, sustainability-based decisions are pivotal to the shareholders as these tend to change the course of the company in a certain direction as well. This helps in engaging a larger amount of efforts that can be undertaken.

It can be ascertained that for the case of the company of Patagonia, there are a large number of investors who are involved in the process. It can be ascertained that for the case of the company, there is a necessity to ensure a larger rate of effectiveness that needs to be undertaken within the element of determining a set ratio of components that are to be generated. It can be determined from the study of Stahl et al. (2019), that for investors the sustainability component is important as long as it generates a certain amount of value for them. It can be viewed that through this explanation it is determinative that sustainability will be developed through the means of generating efficiency in economic benefits.

In addition to this, it can also be additionally determined that a company when generating economic effectiveness needs to keep in mind the prospect of its environmental policies. It can be viewed that the shareholder of the company is directly affected by the company’s systems and inefficiencies. It is determined from this that the company is able to generate a larger potential of development that can be undertaken with utmost benefits that can be generated. Additionally, it can also be viewed that shareholders also make up the goodwill of a certain company. The processes of environmental sustainability may be appealing to shareholders and this may result in a lot of elements that need to be considered for the context of the same.

Thus, it can be ascertained that for shareholder value and potential of a specific company the element of sustainability is deeply interlinked with the same. It can be viewed that for the case of Patagonia this is the case as it is essential for the company to generate a larger level of efficacy that can be undertaken.

3. Strategic and operational dimensions
In the context of the strategic and operational dimensions that are present, there is a necessity that can be ensured within to determine the overall relevance of the same. It can be understood that for the company of Patagonia there is a higher level of influence that is generated through the scope and means of engaging within potential development and growth. It can be ascertained that for the company of Patagonia there is a higher potential of strategic alignment that the company has geared itself towards. Fennel (2019), states that strategic alignment to operational efficiencies is a prerequisite that needs to be undertaken and ensured through the broader scope of a company. It can be ascertained that this allows for the generation of a sound potential that can be undertaken and additionally also allows for growth.

The alignment of the company is generally in line with an effective developmental capacity that needs to be engaged within a business. The strategy of the company is essentially based on generating environmental sustainability that can be undertaken and this allows for ensuring a larger potential of development that can be generated. It also helps in order for ensuring a larger potential of effectiveness that can be undertaken through the scope of the company as well.

It can also be determined that the operational scope of the company is essentially geared towards the development of the element of efficiency that can be incorporated within the business. It's determinative that the operational efficacy of the company is geared towards the development of a significant potential of sustainability that is brought in through recycling. The company uses a core of circular energy building and this helps it to expand. Furthermore, the strategy and operations are aligned to the scope of ensuring a total overview of sustainable development as the company is able to generate a larger potential of efficacy that can be undertaken through the means of generating a sound portfolio of development through its other business based expansions.

The business of Patagonia has expanded into solar energy and also uses the operational elements of ensuring a sound workforce potential for the development of resources in the context of the company. This allows for the generation of an effective potential that can be undertaken and also helps for generating effectiveness overall. This also allows for ensuring a higher rate of efficacy and effectiveness that can be undertaken for the case of the company and ensure a sound potential of development that can be undertaken for the company.

4. Opportunities and challenges for sustainability and ethics
In the case of the prospect of sustainability, it can be understood that there are several different opportunities and challenges that are present in the context of the same. It can be ascertained that for the company of Patagonia, there is an importance that is laid upon the basic foundations of the business. Kemisch and Taebi (2017), indicates that sustainability presents unique opportunities that can be taken to innovate potential that is present for a business. This requires an intense level of change to be taken up by an organization and also allows for ensuring a larger potential of development which can be ascertained and ensured. It also can be determined that for a company, the end for generating a larger rate of effectiveness is very important once it undertakes this system.

The challenges as friends in the study of Bowles et al. Bowles et al. (2018), are that of primary elements such as that of strategic integration. It is difficult for a business to strategically integrate sustainability within its scope as there is major resistance. There is a need for upgrading workforce skills, culture, organizational structure, and so on. These needs are important to be met and are very difficult to implement over the long run. There is an importance of ensuring a larger potential of effectiveness which can be undertaken and further this allows for generating a wide scope of development that can be undertaken and accrued. Additionally, this would also help in ensuring a larger rate of effectiveness that can be incorporated within the overall scope of a company.

The opportunities with sustainability are vast and wide. It can be ascertained that for the creation of sustainable potential there is a need for ensuring a larger potential of development and growth. Sustainability systems are inherent to an organization’s efficiency and allow for the engagement within systems of effective development that can be undertaken. This allows for ensuring a larger rate of efficacy which can be undertaken for ensuring a large potential of growth that is implemented into the structural integrity of an organization.

Conclusion
Drawing inferences from the case of this study it can be defined that sustainability in business operations is an essential element that needs to be considered and this needs to be entered through the scope of a firm. In the given case business sustainability and ethics have been used as focus areas.

Reference List
Bosch-Badia, M.T., Montllor-Serrats, J. and Tarrazon-Rodon, M.A., 2018. Sustainability and ethics in the process of price determination in financial markets: A conceptual analysis. Sustainability, 10(5), p.1638.

Fennell, D.A., 2019. Sustainability ethics in tourism: the imperative next imperative. Tourism Recreation Research, 44(1), pp.117-130.

García, J.L.S. and Sanz, J.M.D., 2018. Climate change, ethics and sustainability: An innovative approach. Journal of Innovation & Knowledge, 3(2), pp.70-75. Jordan, K. and Kristjánsson, K., 2017. Sustainability, virtue ethics, and the virtue of harmony with nature. Environmental Education Research, 23(9), pp.1205-1229.

Kermisch, C. and Taebi, B., 2017. Sustainability, ethics and nuclear energy: Escaping the dichotomy. Sustainability, 9(3), p.446.

Munthe, C., Fumagalli, D. and Malmqvist, E., 2021. Sustainability principle for the ethics of healthcare resource allocation. Journal of Medical Ethics, 47(2), pp.90-97.

Schuler, D., Rasche, A., Etzion, D. and Newton, L., 2017. Guest editors’ introduction: Corporate sustainability management and environmental ethics. Business Ethics Quarterly, 27(2), pp.213-237.

Stahl, B.C., Chatfield, K., Ten Holter, C. and Brem, A., 2019. Ethics in corporate research and development: can responsible research and innovation approaches aid sustainability. Journal of Cleaner Production, 239, p.118044.

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