Billabong, Surfrider Team Up

A new deal between Billabong Inc. and the Surfrider Foundation highlights the “bright side of capitalism,” said Christopher J. Evans, director of the San Clemente environmental group.

The Irvine-based surf-wear company has agreed to give Surfrider 2 cents for every Billabong garment sold bearing a specific hang tag, with a guaranteed one-year minimum donation of $25,000, Evans said. In exchange, Surfrider is allowing Billabong to use its name and logo on the hang tags, a first for the environmental group.

Billabong says it took the step to encourage other companies to make such commitments, but Surfrider executives say Billabong should also gain from the deal since Surfrider’s name on the hang tags should boost company sales.

“It does help the bottom line,” said Lori Booth, Surfrider’s development director. “And that’s why I think more surf-related companies will be looking at agreements like this.” The environmental group is regularly approached by smaller companies in other industries about “cause-related” marketing deals, she said.

Surfrider will publicize Billabong’s contribution--the largest to date from a surf-wear company--on its Web site and in its newsletter, which has 30,000 readers, Evans said.

The trailblazer of corporate do-gooding is Ventura-based Patagonia Inc., an outdoor clothing designer that has built its reputation on its environmental activism, including imposing an “Earth tax” on itself since 1985 that directs 1% of its gross sales or 10% of pretax profit, whichever is greater, to nonprofit environmental groups. So far, the company, said it has donated more than $14 million.