The Negative Effects of Corporate Greenwashing
Photo by 100 Days of Real Food
It's safe to say that going green is "in." As the general public is growing more concerned about the state of the environment, more corporations are adopting sustainable practices to stay in their good faith. Unfortunately, this trend may have a dark side.
Just because a company adopts an image of caring for the environment doesn't mean they have a legitimate interest in being eco-friendly. Because environmentalism has become a trend, some businesses may follow along with it for appearances' sake.
You could argue that a company's motivations don't matter as long as their actions are productive. If businesses do the right thing for the wrong reasons, it may be permissible, but what about those that only appear to do what's right? Some corporations may be giving off the illusion of sustainability while actively harming the environment in a phenomenon known as corporate greenwashing.
What Is Corporate Greenwashing?
Corporate greenwashing is when a business makes impressive claims about their sustainability to distract from their unsustainable practices. Environmental activist Jay Westerveld coined the term in 1986 in response to the perceived hypocrisy from a beach resort. The hotel posted notices about reusing towels to protect nearby reefs while it was in the middle of expanding into those very waters.
Some suggest that the definition of "greenwashing" has evolved. Throughout the 80s and 90s, people used it to describe companies intentionally misleading consumers, but today, many people apply it to any publicized environmental claim. This change likely comes from a growing distrust of large corporations.
In either case, corporate greenwashing describes companies distracting from their unsavory behaviors by promoting their sustainable ones. Whether intentional or not, it can have some adverse effects on both the environment and on business.
Environmental Consequences
The central danger in greenwashing is that it can mislead people into acting unsustainably. If a company says they're eco-friendly, you may want to buy their products. If these environmental claims turn out to be false, then you've accidentally contributed to harming the environment by supporting the company.
There are several documented examples of greenwashing being harmful to the environment. In 2008, a Malaysian palm oil commercial claimed that palm oil plantations provided homes for native flora and fauna. In reality, these plantations contribute to deforestation and habitat loss, so anyone who bought palm oil hoping to protect nature inadvertently did the opposite.
More and more people prefer to buy sustainable products, making eco-friendly claims a powerful marketing tool. False or misleading branding along these lines could convince a growing number of consumers to harm the environment unintentionally.
Societal Consequences
Corporate greenwashing can also hurt businesses. Not all of it is intentional, but it is all damaging to a company's image. In nearly all cases, corporate greenwashing negatively affects businesses' reputation, which can lead to a drop in sales.
Companies looking to increase profits by demonstrating sustainability may accidentally exaggerate their environmental commitment. By doing so, they may hurt their business by appearing dishonest to the public.
Fear of being accused of greenwashing can hinder companies from promoting sustainable practices. While eco-friendly behavior is still desirable without media attention, promotion can help spread awareness of environmental issues. A culture of greenwashing can get in the way of legitimate ecological initiatives.
Prevention
How do you combat the negative impact of corporate greenwashing? Part of the solution may be verification. Groups that verify the validity of a company's sustainability claims could highlight genuinely effective initiatives while outing greenwashers.
Accurate and thoughtful criticism of greenwashers can help too. If nothing else, a culture of skepticism can lead companies to take quantifiable measures to decrease their carbon footprints. The only green businesses that will survive are those that can prove their claims, those that do legitimately take part in sustainable behavior.
The good news is greenwashing is becoming less common across small and large businesses alike. A thoughtful consumer base and growing awareness of environmental problems are making industry greener.
Are you a business that would like to operate sustainably without greenwashing? Book a call with us here to see how we can bring your business the recognition that it deserves for taking care of our planet.