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The announcement that Patagonia had won a National Design Award seemed to make sense, it certainly fits the current zeitgeist concerning corporate responsibility, but this recognition was probably long over-due. Founded in 1973, the company has committed itself to incorporating environmental issues into its heart; from the causes it supports financially to the use of recycled materials in its product line and to the financial commitment of 1% of annual profits being donated to worthy environmental causes.

However, it's not just its pursuit of environmental causes that makes Patagonia so special. Companies can't exist without a culture and basically this is all about the attitude and relationship between the organization and its people. As Patagonia founder Yves Chouinard states in his new book, Let My People GO Surfing,Patagonia's culture is a little different from most.

"This kind of independent thinking applies to our management philosophy as well. In fact, our employees are so independent, we've been told by psychologists, that they would be considered unemployable in a typical company. We don't want drones who will simply follow directions. We want the kind of employees who will question the wisdom of something they regard as a bad decision but, once they buy into something, will work like demons to produce something of the highest possible quality, whether a shirt, a catalog, a store display, or a computer program. How you get these highly individualistic people to align and work for a common cause is the art of management at Patagonia.

Part of the key is strong communication. We have no private offices at our Ventura headquarters; everyone works in open rooms with no doors or separations. What we lose in "quiet thinking space" is more than made up for with better communication and an egalitarian atmosphere. Managers try to lead by example. We don't have special parking places; the best spots are reserved for fuel-efficient cars, no matter who owns them. Malinda and I pay for our own lunches in the cafeteria, so that we don't send a message that it's OK to take from the company. And we have an open-book policy; financial details are available with all employees to promote full transparency.

A familial company like ours runs on trust rather than authoritarian rule. Maybe a few people take advantage of our flextime and our "let my people go surfing" policy, but none of our best employees would want to work in a company that didn't have that trust. They understand that my M.B.A. style of management is as much a sign of my trust in them as my desire to be out of the office."

Patagonia needs to be a case study for all future business leaders, because not only does it make environmental responsibility front and center, it has also built a culture that empowers the individual. It motivates them through the passion of the outdoors and encourages them to seek play within their work. Too often, corporations ruin the potential of their best assets, their people, by turning them to dispassionate drones. At a time when innovation, creativity and sustainability are values that companies need to acquire to survive, Corporate America could learn a lot from Patagonia.