All in Insights

What It Means to be a Responsible Tech Company

The world was abuzz earlier this month when Facebook CEO Mark Zuckerberg announced that he would donate 99 percent of his company shares to charitable causes over his lifetime. The announcement drew criticism about how the donation (currently worth $45 billion) would be apportioned, and for some it brought to light a bigger question about how tech giants decide to give back.

Billionaire tech philanthropy is nothing new. In October, when Square filed its initial public offering, CEO Jack Dorsey (of Twitter fame) announced that he would give 40 million of his shares, the equivalent of 10 percent of the entire company, to help underserved communities and “drive positive impact.”

And last month Bill Gates drew headlines when he announced that he would join more than 20 other billionaires – including Zuckerberg, Jeff Bezos of Amazon, Richard Branson of the Virgin Group and Marc Benioff of Salesforce – to launch a coalition that invests in clean energy projects around the globe.

Throwing money at causes doesn’t solve problems, but it certainly helps. It takes a lot more than dollar signs, though, to create lasting impact and be a truly responsible corporate citizen (tech or not).

A Brief History of Sustainable Fashion

Type the words ‘future’ and ‘fashion’ into any search engine, and you’ll get a stream of results on 3-D printing, wearable technology and e-commerce websites – sustainability is but a mere mention. Yet, the S-word has undeniably made its way into the modern apparel-making process and increasingly influences what lands on runways and store racks.

The fashion industry's growing focus on sustainable practices has even prompted business publications such as Forbes to hail “Green is the New Black.”

Through innovative business practices, the fashion industry has come a long way in improving environmental and social conditions along complex global supply chains. Still, it has a way to go. A brief look into the industry’s storied past illuminates how corporate style setters have responded to shifting consumer demands, market trends and natural resource constraints over the years – signaling what the future of sustainable fashion might hold.

Why is Slow Fashion So Slow to Catch On?

We’ve all been there before (or know someone who has): We’re strolling through our neighborhood mall and our eyes catch a glimpse of glossy signs inviting us to escape into a land of cotton and polyester. Dresses $8.99! Sweaters $9.99! Jeans $14.99! Once we step inside the brightly lit, chandeliered store, the mounds of perfectly folded garments, seductively postured manikins and catchy pop music have us hooked. Before we know it, we’re checking out at the register with a bag of reasonably priced clothes that we never planned on buying – and we’ve only spent $35. How can we resist?

For a generation of budget-conscious millennial shoppers, popping into stores like Forever 21, H&M, Uniqlo and Zara – that offer trendy clothes at low prices – has become par for the course. In 2013 alone, those four fast fashion retailers generated a combined $48 billion in global sales. And a recent report by the financial services firm Cowen Group forecasts that fast fashion sales will increase 11 percent year-over-year through 2020.

The realized growth in the fast fashion market has been astounding – and it’s leaving conventional apparel retailers in the dust. The traditional apparel model of selling seasonal lines of clothing, manufactured and marketed months in advance, has been replaced by these bargain brands that rapidly respond to the latest fashion trends and live by just-in-time production. As a whole, consumers have been loving it; yet, recent events have shed light on questionable aspects of fast fashion’s modus operandi that are prompting some consumers to think twice about purchasing those $5 T-shirts.

Balancing Commerce, Idealism and Yoga Pants: Q&A with prAna CEO

An early adopter of organic cotton and the first major brand to bring Fair Trade apparel to market, prAna has now joined the growing list of beloved green brands (think Annie’s Homegrown, Burt’s Bees, Tom’s of Maine) to be gobbled up by the big guys. The California-based lifestyle brand best known for its climbing and yoga apparel was recently acquired by Columbia Sportswear– a move that will not only help the parent company, a historically cold-weather sports brand, expand its offering, but will also fortify the smaller brand with an operations platform that can help its sustainability mantra reach new global markets.

PrAna’s commitment to sustainability has set it apart from the rest from the start. In its early days, prAna’s founders would cut and sew clothing in their garage, craft hangtags made with homemade recycled paper, and ship orders to customers in boxes gathered from the local grocery store. The company was also an early proponent of renewable energy within the apparel industry, pioneering wind power through its Natural Power Initiative, for which it was recognized as an EPA Green Power Partner. PrAna has come a long way from making its garments in garages and delivering clothes in fruit boxes – today the company’s products are sold at 1,400 specialty retailers across the United States, Canada, Europe and Asia and its sales are expected to hit more than $100 million this year. All of this is expected to continue to grow in the wake of Columbia’s acquisition. The question on everybody’s minds is: “Will this acquisition change the company’s commitment to sustainability?”

The Myth of the Sleeping Giant

When I think of the reasons my dad drives a hybrid, fills his groceries in reusable bags, and never leaves the lights on in an empty room, advertising doesn’t exactly come to mind. Marketing and advertising don’t quite explain why, as a child, I grew up eating home-cooked meals made of fresh, unprocessed ingredients; I can still taste the flavors of my mom’s homemade salsa verde enchiladas covered with queso fresco, all whipped up by hand. My parents, who migrated from Mexico City over three decades ago and now proudly call themselves Americans, would never claim to be “green” or “environmentalists.” Yet, some of their habits tell a different story. 

What the outside world sees is sometimes different than what goes on behind closed doors – and that is certainly the case when it comes to Latinos’ relationship with the environment. My parents are representative of millions of Latinos across the United States who are preservationists at core: they hold an inherent respect for nature, are mindful of future generations, and want to live in healthier, cleaner environments. And it is their children and grandchildren, a younger, more social and tech-savvy demographic, who are shaping the next wave of tastes, trends and traditions of this country. Will that future be green? It depends.

Green or not, the future of this nation is brown. The U.S. Latino population is growing at three times the rate of the overall population, and the group’s purchasing power is expected to grow 50 percent in a matter of years. Most businesses know this, but these facts are not entirely reflected in corporate sustainability and marketing efforts.