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Patagonia Registers As Benefit Corp.

New law lets company pursue social goals

Outdoor clothing company Patagonia on Tuesday made legal its belief in social responsibility when it took advantage of a new California law that allows for-profit companies to register as "benefit corporations." The designation was created to protect companies from shareholder lawsuits in the event that a socially or environmentally conscious business strategy—for example, urging consumers not to buy new outdoors clothing—comes at the expense of profits. In November, Patagonia launched the Common Threads Initiative, which promotes recycling and reusing old clothes.

Read more at The Los Angeles Times

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Filed To: News