Consumer Goods & Ethical Marketing: The Rise of Greenwashing
The hypersensitivity and increased consciousness of today’s consumers has led brands to think critically about the value of appearing more ethical and sustainable. To a large extent, this new generation of consumers have been responsible for an ‘eco-awakening’ that has caused some corporations to present a false sense of interest in sustainability initiatives. According to a recent study, a third of global consumers say they will pay more for sustainability. As sustainable practices become a powerful driving force for consumer purchase, brands will go the extra mile to prove just how ‘green’ they are.
For a lot of organizations and even the consumers themselves, sustainable and ethical practices are still relatively unchartered territory. While many consumers may be aware of their core environmental or social values, and while some brands attempt to show consideration for those values, the absence of an easily identifiable yardstick has made it challenging to truly measure how well businesses across the globe are implementing sustainability.
A recent report by Deloitte highlighted the top five most important environmentally sustainable or ethical practices. Producing sustainable packaging and products, a commitment to ethical working practices, and respect for human rights were some of the concerns that were of significance to consumers. In a world where fast fashion brands cut corners to reduce labour costs and manufacturers of consumer packaged goods convey misleading information on the packaging of their products, it is easy for a lot of consumers to fall prey to greenwashing.
Greenwashing, a term used to describe the falsification of sustainability-related claims, has become a common marketing practice. Major culprits have not only been fashion or lifestyle brands but also companies across a wide range of industries that often present an inaccurate picture of their commitment to diversity, human rights initiatives or other ethical practices that consumers say they value. This would lead us into the topic of ‘woke washing’ but we will save that socio-culturally charged topic for another day.
What a lot of businesses fail to realize is that even in a conscious era, the long-term consequences of greenwashing could be more detrimental than refusing to label a product as sustainable. According to the Deloitte study highlighted above, 35% of consumers surveyed indicated that having a transparent, accountable and socially and environmentally responsible supply chain could influence the trust in a business. 29% also suggested that a strong public perception, record and reputation around climate change and sustainability will positively impact their level of trust for the business.
Ever since ‘Cancel Culture’ began gaining ground, a number of brands have fallen victim to high-level criticism. Established corporations have crumbled in a matter of seconds either for making the wrong statement, misleading consumers or concealing information. Greenwashing has been at the heart of some of these attacks in the past and business leaders are beginning to realize how vulnerable green claims can make their organizations.
Governments across the world are implementing measures to regulate how brands make sustainability claims. There is the Green Claims Code in the U.K and Canada, EU Consumer Rights Directive, and FTC revised Green Guides in the USA. The purpose of these initiatives are to protect consumer rights and drastically reduce greenwashing by giving brands an opportunity to verify their green claims before presenting them to consumers.
Very recently, Asos, Boohoo, and Asda have come under fire for using language that indicates their products are greener than they are. Similarly, ads by dairy alternative brand, Oatly have been banned in the U.K for having ‘misleading’ green claims and the Advertising Standards Authority launched an investigation into the campaign in light of concerns raised by the public. On the other side of the spectrum are brands like Organic Basics, a Copenhagen-based label moving the needle when it comes to sustainability. With their low impact website, the goal is to contribute to the reduction of their audience’s internet carbon footprint. This was created in response to a consumer who questioned their sustainability values due to the growing contribution of carbon emission by online usage.
As brands strive to be seen as sustainability leaders within their industries, they will face great scrutiny from regulatory bodies and consumers alike. To overcome any huddle, brands must first acknowledge that the path to true sustainability is in fact a long never-ending road that requires a genuine commitment to the environment, continuous innovation, consumer values and ethical marketing.
Written by Elizabeth Ole
Edited by Nnenna Hemeson
