Why "just" 1 Percent?
A question that we get a lot (or trolling that we get a lot) is "why do you just give 1%, why not more?".
To start with we have pledged to give at least 1%, so it's not just 1%, it will be more, but the question needs a more in depth answer.
The 1% comes from Detrash being the first European watch brand to sign up for 1 Percent For The Planet - an organisation created by Patagonia founder Yvon Chouinard to help business be a force for good in the world. This organisation helps keep us in check, by confirming that we do actually give what we say we are going to give, and keeps the charities that we donate to in check by making sure that they are putting the money to good use.
But why is it just 1%?
The answer is to avoid greenwashing.
10% or 20% or any bigger number may sound better, but that doesn't mean it is better. When you see a number like this it should be a red flag.
When we say 1%, this is 1% of sales/ turnover/ income (3 ways of saying the same thing).
When a company says 10-20% this is normally as a % of profit. The % of profit model is actually what Yvon Chouinard started with, but abandoned quickly because it's so easy to manipulate.
To explain:
Lets say a company's turnover is £1,000,000; then 1% is £10,000, no ifs, no buts that's it. It cannot be manipulated.
If that company instead of pledging 1% of turnover, pledged 10% of profits, and it had a 10% net profit, then the net profit on £1m would be £100k, and 10% of this would be £10k... the same as the 1%.
BUT.... and this is the big but. The CEO could easily say "we've had a good year and have cash in the bank, I am going to give a company bonus of £50k split between everyone" (lets assume he's generous and doesn't take it all for himself), then all of a sudden the net profit is just £50k and 10% of this is just £5k.
The sales are the same. The 10% pledge is still the same. BUT the money the charity gets is halved. That is just one way to manipulate the % to charity, there are many, many, many more.
Additionally most early-stage ambitious companies don't actually make a profit. They re-invest everything into growth to get bigger quicker. So a company can look good, be selling lots of products, pledge 15% to charity and actually give £0, without really lying.
At Detrash we are all about doing things the right way, even if it's the hard way and even if it doesn't sound as good. The 1% of sales pledge makes sure that we can support the causes that we care for, even if we aren't making any profit. Plus, our aim is to be BIG. The last company I built, Pooch & Mutt, had £30m in sales in the last year I was there (£40m the next year). 1% of £30m is £300k. If I get Detrash to the same size then there is a lot of good that this company can do in the world. Together we can make that happen.