Patagonia Now Legally Responsible For Positive Environmental Impact
The outdoor clothing company becomes one of California's first "Benefit Corporations" that allows it to put environmental and community benefits above shareholder profits.
Outdoor apparel retailer Patagonia has become one of California’s first “Benefit Corporations,” which gives the company’s directors legal protection to consider social and environmental benefits over financial returns. This new legal status was designed to embed goals into companies’ missions that go beyond profitability but ensure they are legally shielded from civil suits by shareholders. Benefit Corporations are legally required to: