At the heart of Patagonia's unique ownership structure is the concept of a Benefit Corporation, a legal framework that allows companies to pursue not only profit but also social and environmental goals. According to their
website, in 2012, Patagonia became one of the first companies in California to formally adopt this structure, signaling its intent to prioritize a broader spectrum of values beyond traditional financial metrics. What distinguishes Patagonia's Benefit Corporation status is its dedication to transparency and accountability. As a Benefit Corporation, Patagonia is legally obligated to consider the impact of its decisions not only on shareholders but also on workers, communities, and the environment. This structure aligns seamlessly with Patagonia's founding principles and ensures that the company's commitment to social and environmental responsibility remains an integral part of its operational DNA, safeguarded against potential dilution as it expands.