If you found the previous post on Patagonia's Footprint Chronicles interesting for your business, take a look at Fast Company's detailed profile of the initiative.

It's a timely reminder that even companies with longstanding good practice can benefit greatly from deeper examination of processes and communication efforts. Also, the insights provided by Jill Dumain, Patagonia's director of environmental analysis, are worth mulling over.

I'm always interested in hearing more views on these topics - let me know what you think.

Patagonia is a company I admire for their long history of mixing environmentally friendly practices with a solid business model. Recently, they sent me an update on The Footprint Chronicles, a tracking system which measures the environmental impact of producing their high-performance sportswear products.

The Footprint Chronicles give us a snapshot of the production process and its consequences (or lack thereof) by tracking 10 current Patagonia items 'from design through delivery'. Material sourcing, labour conditions, and shipping statistics are neatly summarised in The Good, The Bad, and What We Think sections, while an interactive map lets us explore the details.

The Footprint Chronicles are only one aspect of Patagonia's commitment to corporate social responsibility. Two more sections on the website - Environmentalism and Leading the Examined Life - demonstrate how Patagonia makes such commitment an integral part of their business, not just a marketing campaign.

It can be risky. Being truly environmentally responsible as a company, or being so transparent about business practices aren't always the most profitable routes. And few enterprises have the long history of earnest corporate responsibility that Patagonia does.

Still...I find the Footprint Chronicles an inspiring example of greener business practice and more open customer relations. If you run a business, would you consider developing a similar policy and campaign? Do you think Patagonia's balance of ethics and profitability is a widely applicable way forward?

The Times’ “How I Made It” profile of eco-entrepreneur Douglas Miller, founder of Remarkable, that produces pencils, mouse mats from recycled plastic products after deciding “the most effective thing would be to demonstrate – practically – what can be done with finite resources.” Sales are up to in excess of £3m, and with distribution channels including Tesco, the recycled stationary niche is about to get more mainstream.

“Sympathy is always on the side of Robin Hood.”
Daniel Bouton, chairman of Société Générale, on rogue trader Jérôme Kerviel becoming a cult hero

“Only those who will risk going too far can possibly find out how far one can go.”
T.S.Eliot, quoted in The Independent

“The really frightening thing about middle age is the knowledge that you’ll grow out of it.”
Doris Day, quoted in Newsday

 

Diana Choyleva, chief economist at Lombard Street Research, reckons that sterling’s poor performance poses a problem for the UK economy in Business XL’s February 2008 edition:
“One issue that will dog the UK economy is the performance of sterling, which is likely to continue to depreciate against the euro. Sterling is particularly exposed to a fall against the euro, with growth and interest rates likely to hold up better in the eurozone than in the UK.”

There comes a stage in all growth businesses when the issues of management succession become pressing. But finding the right people requires time and serious soul-searching as Nigel Botterill, founder of £7m-turnover franchising business thebestof.co.uk, explained in Real Business magazine. “It took me nine months to replace myself. I was working with 280 franchisees across the country, employing 35 staff. Everything rested on my shoulders and it was too much.” A headhunter search followed by numerous rounds of psychometric tests and personality profiles produced a standout candidate – Andy Hurst. But his current salary was way above what Botterill had expected to pay. “I had a stiff drink and a word with my accountant. It’s a bit like buying a house. You always end up blowing your budget but, if it’s your dream house, it’s worth paying over the odds.” Botterill’s decision to hire Hurst in October 2007 is paying dividends though: “I gave him my office and my PA to send out a clear message that he runs the show, not me and it has been a Godsend. Andy deals with the day-to-day running of the business, so I can focus on strategy and new product launches.”

Simon Walker, new CEO of the British Private Equity and Venture Capital Association (BVCA) argued the case for private equity in its New Year message and criticised aspects of the UK's tax system where they affect entrepreneurs. In particular, the proposal to raise capital gains tax rates to 18% from April will leave Britain with a rate "higher than most European countries", and will damage competitiveness especially in the smaller companies sector. “CGT is not as good as it could be. The UK’s competitive advantage is being eroded,” he said in an interview in Real Deals magazine.

The Annual World Economic Forum in Davos, the most impressive gathering of business glitterati in the financial year, saw large private equity firms keen to make their mark. The unveiling of a report by Harvard Business School professor Josh Lerner looked at the long-term nature of private equity as an asset class, which studied 21,397 private equity transactions between 1970 and 2007, drew a number of positive conclusions about the value of working with a private equity backer. Notably it highlighted the level of investments in innovation and the increasingly long-term patterns of holding investments.