Greenwashing: Are you at risk?
My last blog entry encouraged marketers to reduce greenhouse gas emissions and tell consumers of their efforts. A reader correctly cautioned marketers to beware of greenwashing.
What is greenwashing? It's when your claims of environmental-friendliness outstrip the reality of your environmental impact. It's selling the sizzle without the veggie burger.
Years ago, when the environmental movement gained steam, firms were quick to promote biodegradable plastic and recyclable products. Consumers then found out that those plastics didn't degrade in airless landfills and systems didn't exist to actually recycle those products. No wonder consumers became cynical of environmental claims and marketers became gun shy of using those claims.
Time has passed, and there is one again growing interest in environmentally-friendly products and services. If you are thinking of positioning your firm as environmentally-responsible, proceed with caution. The first step is to back up your positioning with sustainable business practices. However, even with cutting-edge sustainable-business practices, caution is necessary. The problem is that sustainable business is more of a goal than a reality. Just because you are moving toward sustainability, doesn't mean you are there yet or that consumers understand the distinction.
Consider BP. The firm got great PR mileage for saying it was moving "beyond petroleum." And, deservedly so - - many BP initiatives are impressive. Of course, BP isn't beyond petroleum yet, and consumers were shocked to learn of BP's leaking pipeline in Alaska. For better or worse, consumers hold firms that claim to be "good" to extremely high standards - - it's not enough to just be better than the competition.
Ford is another example. Ford should get credit for transforming its River Rouge manufacturing plant from an environmental disaster into a model of environmental-responsibility. And Ford was the first American auto maker to introduce hybrids. Then again, the average fuel economy of the Ford fleet is the pits.
Are BP and Ford guilty of greenwashing when they tout their environmental initiatives without presenting the full story?
Consider home grown examples. An area restaurant positions itself as 'sustainable.' The restaurant is a model of environmentally-responsibility compared to the competition. Yet, I know consumers who boycott the restaurant because it isn't responsible enough - - it doesn't always follow best practice. The restaurant's environmental impact, for example, was needlessly high for a long time because it eschewed microwaves on the grounds that many of its consumers perceive microwaves as "unnatural." Catch-22: consumers were saying that they wanted environmental-responsibility, yet they didn't truly want what they were asking for. The firm chose to pander to ignorance rather than educate their consumers, and lost more knowledgeable customers in the process.
Another Maine firm is a leader in energy-efficiency and waste reduction, but its marketing efforts don't match up to its manufacturing standards. At trade shows, the firm gives away disposable plastic pens touting the firm's philosophy of sustainability. Nowhere does the pen say it was made with recycled plastic. No surprise that someone who saw me using the pen wailed "I thought they were one of the good guys!"
I don't want to discourage you from being environmentally-responsible; just proceed with integrity and an awareness of the pitfalls of greenwashing.
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Nancy,
Nice post. I do agree that there are some firms that slap a leaf on their logo and say they're green and some do a lot of green things and don't look for PR from it.
It's great that companies like Ford, BP and others like CT based United Technologies and Pitney Bowes are leaders on the Dow Jones Sustainability 100 Index and they are able to enhance their share holders return on investments because they have greater resources. They also share knowledge with their supply chain and their workers.
What many small to mid sized businesses need to realize is that they too can think big and embrace sustainability to not only enhance market share but to also to attract a younger, greener workforce.
The companies of the future that are successful are the ones that act now and adopt the triple bottom line of social responsiblity, environmnetal stewardship and economic investmnet into their missions and core being.
Posted by
Green WarriorSeptember 5, 2006 11:04 PM
Thanks Nancy. I strongly agree that sustainable business is a continuum and not a fixed goal. It is the future of business, small and large, in all sectors, anywhere in the world, regardless of your politics. The forerunners leading us to new territory in how to conduct responsible business will, and deserve to, benefit the most.
While no company can yet claim to be sustainable, Interface Fabrics is an example of one big one that is trying and has set the goal to be not just sustainable, but restorative...now that's vision! And it gets them a lot of airplay. But they mean it, and it's exactly what we need to do if we care about our world.
You don't, however, have to be big to set a big goal and reap the benefits. Maine is full of small businesses eager to share how they are "doing well by doing good." How can you do it in your business? Set your sights high, think 50, 100 or 500 years down the road, and ask the question "How can I do this in a way that isn't toxic somewhere along the line?" THEN,when you've answered that for even a tiny part of your business, flaunt your colors so others can copy you and, we should all hope, take it one step further.
Posted by
Sanna McKimSeptember 6, 2006 10:20 AM