Deckers Brands

Deckers Brands: Making a Change

Authors

Kristi Ha

Kristi Ha

James Otto

James Otto

Nyra Mobley

Nyra Mobley

Alexandria Alvarado

Alexandria Alvarado

School

Loyola Marymount University

Loyola Marymount University

Professor

Ingrid Greene

Ingrid Greene

Global Goals

3. Good Health and Well-Being 5. Gender Equality 12. Responsible Consumption and Production

Keep this story going! Share below!

Summary

The United Nations' Sustainability Goals are key aspects of any business operating in the 21st century. Though these goals can be used as a source of competitive advantage, Deckers Brands uses them as the pillars for their operations. This important forethought from the executives and other members of Deckers Brands, is to use these goals not as a way to help the business, but as a way to change the business as a whole. This report will analyze three key goals that Deckers greatly values and follows. Though Deckers focuses on far more than the three that will be mentioned, it is believed that Good Health and Well Being, Reduced Inequality, and Responsible Consumption and Production, best encapsulate the holistic view of the company. With the assistance of Michelle Apodaca, director of the executive suite and director of Deckers Gives, a first-hand account of the effort Deckers goes to will be presented, a key element of this project. And finally, this report will evaluate the significant positive impact and benefits that these goals have not only for Deckers but the entire industry and sector as well.

Innovation

Innovation: Good Health and Well Being

SDG 3’s main purpose is to ensure healthy lives and promote well-being for all at all ages. Deckers works towards reaching this goal by prioritizing their employee’s mental health and well-being through their offering of free Headspace memberships and the Supporting Employee Assistance Program. They also focus on reducing hazardous chemicals throughout their operations which shows their commitment to ensuring consumer safety and promoting good health and well-being. Deckers shows how much they value their employees and their families by offering a competitive paid parental leave program as well as a dollar-for-dollar employee contribution match towards childcare or senior care expenses. They provide an on-site fitness center at their headquarters as well as virtual fitness classes to promote good health and well-being. It is evident that the employees at Deckers also acknowledge their efforts at creating a healthy and positive work environment as Newsweek recognized them as one of America’s Most Loved Workplaces. Deckers exemplifies what a workplace that truly values good health and well-being is really like.

Innovation: Reduced Inequalities

The main goal of SDG 5, Gender Equality, is to achieve gender equality and empower all women and girls. Deckers reaches this goal by promoting diversity, gender equality, female empowerment, and inclusion for all. Deckers prioritizes and values DEI as they hope to create an inclusive workplace where their employees can thrive from being their most authentic selves. Deckers has implemented many inclusion efforts such as offering Employee Resource Groups, Women’s Leadership Summit and adding self-identification fields to their Human Resource Information System. Michelle Apodaca stated how their “goal by 2027 was to have 27% of director level and above BIPOC and gender/non-gender equal across that board represented and we are already at 21%.” This shows how Deckers is truly making efforts to reach its goal and is working towards a more inclusive workplace as well as society.

Innovation: Responsible Consumption and Production

Ensuring sustainable consumption and production patterns is the primary goal of SDG 12. Deckers reaches this goal by studying the environmental impact metrics of fossil fuels, greenhouse gases with carbon uptake, and water usage. Michelle Apodaca stated how Deckers has a whole ethical supply chain team that monitors the factories partnered with Deckers on a regular basis and an extensive restrictive substance list. This helps the business engage in a circular economy and trace its raw materials. Deckers also uses regenerative agriculture to focus on topsoil regeneration, increased biodiversity, and an improved water cycle to support the evolution of the Australian sheep farming industry, where the vast majority of our sheepskin for UGG is sourced. Within their own LEED silver-certified buildings they utilize low-flow fixtures saving around 350,000 gallons of water each year. Deckers actions show that they are dedicated to responsible consumption and production for their suppliers and themselves.

Deckers Brands: Making a Change

Inspiration

Deckers Brands was built in 1973 when founders, Doug Otto and Karl F. Lopker decided to take a risk and follow their passion. Their innovative flip-flop was the start of their journey of now being a global, multi-brand company. Deckers is so much more than just a footwear company; they focus not only on becoming better at everything they do but also to better the world. Focusing on many Sustainable Development Goals such as Good Health and Well Being, Gender Equality, and Responsible Consumption and Production inspire the company to continue to promote good within and outside the company.

The five values at Deckers, “Come As You Are, Better Together, Commit to Create, Own It, and Do Good And Do Great,” contribute to the Deckers purpose while allowing them to stay accountable to fulfill their goals. In summary, these values focus on teamwork while still encouraging individual exploration and expressiveness. Additionally, it allows them to reflect and appreciate where they are, how they got there, and how they can continue working on a better Deckers for the future.

Overall impact

The United Nations sustainable development goals are clearly presented in all aspects of Deckers. The desire to reduce inequalities presents females, members of the LGBTQ+ community, and people of color, with the opportunity to join a company that really does care for them as individuals and the values they represent. The hard-fought battle to provide health and well-being to all people from all walks of life is a battle in which Deckers is fighting strong. The global reach of the business allows the proactive company to instill all possible efforts towards ensuring the important values of health and safety are achieved all around the world. Deckers has gone far beyond what is required to ensure that the physical products and packaging create the smallest environmental footprint possible, enabling the planet to remain ecologically sustainable for generations to come. What makes Deckers so great and different from many other businesses, is the importance of putting society and the environment ahead of their own personal financial successes, enabling an inspiring journey from business analytics to sustainable business practice. As one final note, Deckers above all else respects the goals which it instills, knowing full well that with consistent change and adaptation, the nature of Deckers as a whole will continue to flourish, long into the future.

Business benefit

Deckers has proven to be making major changes and improvements to its business in order to become a better company not only for its customers but for the planet. By making these changes and continuing to work towards SDGs 3, 5, and 12, they are able to attract different customers, other brands, and investors that match their values for making the world a better place. These innovations have allowed Deckers to become a better business on an employee scale as well. Employees are more aware of what they can do to make a difference, whether that be working towards improving materials, improving their diversity in the company, or recognizing the difference they can make through volunteering. Michelle states in our interview that “Deckers is on a never-ending journey and it’s a constant evolution…while we will never reach perfection, we are doing an amazing job.” She discusses that many investors and analysts are looking to invest in companies that are valuing these changes, and Deckers is setting itself apart by going above and beyond which has made them one of the leaders. Deckers’ initiatives towards reducing energy usage per pair by 2030 for each brand are all on track and have continued to improve over a four-year span. This shows that Deckers is on the way to making its business a better one for all.

Social and environmental benefit

Deckers aims to disrupt by challenging themselves and the industry by being creative, and innovative, and creating solutions to issues that plague our planet. Deckers conducts country of origin analyses for their products to ensure the tin, tungsten, tantalum, and gold used in their hardware are not sourced from any prohibited locations. Additionally, their Ethical Sourcing and Animal Welfare Policy was updated to require 100% traceability to the birth farm for hides originating from certain countries. Deckers require their suppliers to provide verified documentation identifying birth farms to ensure that it is not located within deforested areas, involved in rural conflicts, with labor analogous to slavery or invasion of indigenous and protected areas. Deckers efforts are essential in maintaining that they are part of the solution and not the problem.

Interview

Michelle Apodaca, Director, Deckers Gives & Board Administration

Photo of interviewee

Business information

Deckers Brands

Deckers Brands

Goleta, CA, US
Business Website: https://www.deckers.com/
Year Founded: 1973
Number of Employees: 1001 to 5000

Deckers Brands was founded in 1973 by two UCSB students by the names of Douglas Otto and Carl Lopker. Carl enjoyed making leather sandals in the Santa Barbara area, but couldn’t sell enough to make a living. However Doug, an avid surfer, would travel to Hawaii, selling the leather sandals and enjoying the surf at the same time. As the business grew significantly over the next ten years, Deckers purchased Teva in 1985, expanding the business into the mountain sports industry. The great success of Teva enabled Deckers to go public in 1993 and purchase its flash ship brand UGG Australia in 1995. Today Deckers is a multi-billion dollar annual revenue company, and one of the largest in the Santa Barbara area, and though the original founders are long gone, the same personable business culture is still a large part of the company. Deckers’ mission and values present a role model for any industry and lead to a real sense of pride in the company that will last for years to come.