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Sustainability and Competitive Advantage: A Case of Patagonia's Sustainability-Driven Innovation and Shared Value
Abstract
Sustainability and Corporate Social Responsibility have been perceived for many years by companies only as an annoyance, involving regulations and extra cost. The recent economic downturn and increasing stakeholder pressure have forced businesses to embrace the complexity and interdependencies between shareholder value and sustainable value. Sustainability-driven innovation is the key to overcoming the old conflict between economic and social objectives and, as in the case of Patagonia Inc., is paying off for a growing number of companies as it generates a sustainable competitive advantage. This chapter explores ways in which corporations can pursue economic, social, and environmental objectives simultaneously while creating shared values. It also looks into the very complex issue of measuring both the business and social impacts of shared-value strategies.
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