Green blue or black, but washing--what company characteristics determine greenwashing
You’ve probably heard of whitewashing at least once in the corporate world. Whitewashing is when an organization covers up or glosses over scandalous information by presenting a biased representation of the facts. But greenwashing isn’t nearly as well known. Show
Greenwashing is when an organization spends more time and money on marketing itself as environmentally friendly than on actually minimizing its environmental impact. It’s a deceitful marketing gimmick intended to mislead consumers who prefer to buy goods and services from environmentally conscious brands. We’ll explain greenwashing, how it can damage brands, and what you can do to avoid it. What is greenwashing?Environmentalist Jay Westerveld coined the term “greenwashing” in 1986, in a critical essay inspired by the irony of the “save the towel” movement in hotels that had little impact beyond saving hotels money in laundry costs. The idea emerged in a period when most consumers received their news primarily from television, radio, and print media, so they couldn’t fact-check the way they could today. Companies that have engaged in greenwashing on a wide scale have made headlines over the years. In the mid-’80s, for example, oil company Chevron commissioned a series of expensive television and print ads to broadcast its environmental dedication. But while the now-infamous “People Do” campaign ran, Chevron was actively violating the Clean Air Act and Clean Water Act, as well as spilling oil into wildlife refuges. Chevron was far from the only corporation making outrageous claims, unfortunately. In 1991, chemical company DuPont announced its double-hulled oil tankers with ads featuring marine animals prancing in chorus to Beethoven’s “Ode to Joy.” It turned out the company was the largest corporate polluter in the U.S. that year. Did you know? A whopping 83% of Americans are concerned about the environmental impact of products they buy and say it’s important for companies to design more environmentally friendly products.How greenwashing harms a brand’s reputationGreenwashing has changed over the last 20 years, but it’s certainly still around. As the world increasingly embraces the pursuit of greener practices, corporations face an influx of litigation for misleading environmental claims. For example, the Alliance to End Plastic Waste (AEPW) – a Singapore-based nonprofit backed by big oil and chemical companies such as Shell, ExxonMobil, and Dow – claims to be spending $1.5 billion to clean up plastic waste in developing countries. Despite this supposed goal, AEPW not only failed to honor its promise to clean up the Ganges River in India, but its member organizations went forward with plans to produce even more plastic. Even the bottled water industry tries to overrepresent its greenness. How many plastic bottles have you seen with colorful images of rugged mountains, pristine lakes and flourishing wildlife printed on their labels? “The core theme has stayed the same,” said Philip Beere, vice president of marketing at Sightline Payments. “The No. 1 violation is embellishing the benefit of the product or service.” Beere said he believes greenwashing is rarely caused by malicious plots to deceive – usually it’s the result of overenthusiasm. It’s easy to see why marketers are enthusiastic: According to GreenPrint’s 2021 Business of Sustainability Index, 64% of Gen X consumers would spend more on a product if it comes from a sustainable brand, and that figure jumps to 75% among millennials. Did you know? Greenwashing has a cost. According to a GreenPrint survey, more than half (53%) of American consumers “sometimes” or “never” believe companies’ environmental claims.How to avoid greenwashingIf consumer demand for sustainability is the frontier of our transition to a greener, fairer, and smarter global economy, here are 10 basic brand greenwashing tactics to avoid.
There are plenty of socially responsible businesses telling their environmental stories to the world – and even some that aren’t but should be. The incidences of “pure greenwash” – purposeful untruths about a product’s impact – aren’t widespread. However, many examples out there come close. Beere describes the buzzwords commonly used to greenwash as a “slippery slope” and advises companies to educate their marketers on the ethics of green branding. Key takeaway: Consumers have deep relationships with brands they trust. Even if you’ve built a powerful brand, nothing destroys trust in a business more than consumers realizing it has been lying to them about something they deeply care about.Tips to avoid inadvertent greenwashingUse the following strategies to ensure that your company is not greenwashing.
Difference between green marketing and greenwashingThere’s a fine line between green marketing and greenwashing. Unlike greenwashing, green marketing is when companies sell products or services based on legitimate environmental positives. Green marketing is generally practical, honest, and transparent, and it means that a product or service meets the following criteria:
However, it’s easy for green marketing to translate to greenwashing in practice when an organization doesn’t live up to the standards of sustainable business practices. “Eco-friendly,” “organic,” “natural” and “green” are just some of the widely used labels that can be confusing and misleading to consumers. If you’re ready to slap some grass on your logo, be transparent with customers about your company’s practices, and have information readily available to back up your claims. Transparency and corporate social responsibility“Greenwashing is actually in a corporation’s best interest,” said Deandra Jefferson, former office manager for a sustainability organization that she requested go unnamed, in an interview with Business News Daily. “Although the concept of corporate social responsibility exists, it is very rare that corporations actually live up to [it], and when they do, it’s a surface-level effort to make themselves look good.” In other words, greenwashing benefits a corporation only when it successfully deceives its customers. Transparency can bridge the gap between artificial and genuine concern for the environment. One example of transparency is activist outdoor clothing retailer Patagonia. Unlike most companies, Patagonia doesn’t sugarcoat its use of chemicals or the fact that it leaves a footprint. The company’s sustainability mission is described as a “struggle to become a responsible company.” “We can’t pose Patagonia as the model of a responsible company,” its website reads. “We don’t do everything a responsible company can do, nor does anyone else we know. But we can tell you how we came to realize our environmental and social responsibilities and then began to act on them.” Do your best to tell your company’s sustainability story and avoid greenwashing. It’s a dirty practice, and we all know how costly a trip to the cleaners can be. Jennifer Dublino and Adryan Corcione contributed to the writing and reporting in this article. Source interviews were conducted for a previous version of this article. How do you identify greenwashing brands?6 easy ways to spot a person or brand greenwashing. It's not always easy, Soong emphasises, but these six tips could help, next time you're not sure.. Look behind the buzzwords. ... . Do your research. ... . Use your common sense. ... . Rely on the right resources. ... . Make sure claims are verified by a third party. ... . Make the investment.. How do you know if a company is engaged in greenwashing?Lack of Proof: The company may make claims about its eco-friendliness (“made with organic materials!”) without sharing certifications or other evidence to back them up. Vagueness: Brands can greenwash by making broad statements filled with buzzwords about their sustainability that are too vague to mean anything.
What industries use greenwashing?Below, you will find some of the most prominent examples of greenwashing companies 2022.. McDonald's.. Royal Dutch Shell.. Volkswagen.. Sea World.. Coca-Cola.. Nespresso.. Walmart.. Red Lobster.. What is greenwashing and how can we identify it?Ensure your company isn't damaging customers' trust by greenwashing – making false claims that your company or products are environmentally friendly. Greenwashing is when a company purports to be environmentally conscious for marketing purposes but actually isn't making any notable sustainability efforts.
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