The Ethics of Profit: Can Business and Ethics Fit in Same Sentence?
So…
We all hear about the stories and conspiracy theories of famous businessmen like Andrew Carnegie and John D. Rockefeller, who originated from humble beginnings and later amassed immense wealth. Many people often label them as exploiters and greed-driven scum of the Earth, attributing their success and massive wealth purely to the suffering of others. But this perspective overlooks a critical point, one that perhaps isn’t best represented by Carnegie and Rockefeller: profit and ethics can indeed coexist.
The first thing we have to ask ourselves is why would anybody want to do business in the first place? The answer usually is that business allows people to do exactly what they want, like developing a certain product or service they’re passionate about, while also making some profit, or money for themselves. I’d say that both parts are equally as important, although passion is required to make profit off of a product while profit does not necessitate the development of a successful product. So in that regard, passion may serve as the most important means to an end while profit is simply, well, an end.
The second thing we should recognize is that business is present in literally everything. Everything is some variation of a business. The doctor's office is meant to get you healthy and happy, but it’s also a business: You pay to see the doctor and in return, you get treated. The pharmaceutical industry is a huge business: People pay thousands and thousands across their lifetimes for drugs that allegedly help them with their chronic depression amongst other things. And then of course there are the other businesses out there that we think of when we think of the word, business: Big brands like Nike, Adidas, BMW, Mercedes, etc.
I wanted to talk about one brand in particular that perfectly shows how huge profit and ethics can, without question, coexist. That brand is none other than Patagonia.
The Inspiring Story of Patagonia's Founding
Patagonia was founded in 1973 by Yvon Chouinard, a rock climber and environmentalist who was deeply passionate about the outdoors and nature. Chouinard first started by making climbing gear from reused materials. He understood that climbing and outdoor activities could come with a significant ecological footprint, so he wanted to create products that would not only perform well but also be sustainable, so he and his children and his children’s children could enjoy the beauty that nature had to offer for centuries to come.
From its early days, Patagonia embraced a philosophy of “doing business to save our home planet.” This ethos was crystal clear in its business practices—such as using organic cotton, recycled materials, and making sure that employees loved their jobs. The brand became not only a high-quality outdoor apparel company but also a deep commitment to environmental activism. Patagonia, led by Chouinard, decided to allocate a portion of its profits to environmental causes. He donated 10% of profits each year or 1% of sales, whichever happened to be the higher of the two that particular year.
One of the most notable (and noble) initiatives was the "1% for the Planet" program, which encourages businesses to donate 1% of their sales to environmental organizations. Patagonia is an inspiration to me and should be for other aspiring entrepreneurs. They set an example of how companies can grow massively while prioritizing the well-being of the planet and their employees.
