Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptx
Green Washing: The Darker Side of CSR
1. Research Scholar: Muhammed Sajid N
Supervising guide: Dr. Zakkariya K A
Green Washing:
The darker side of CSR
2. Plan for the day
• Green product & Green Marketing
• Green washing
• Corporate Instances
• Sins of Green washing
• Tips to avoid green washing in real life
3. Green Product
• “Green products are designed to reduce energy
consumption, use less natural resources, raise the
recycled materials, and reduce or eliminate toxic
substances, which are harmful to both the environment
and human health” – AMA
• “Green products contain elements that are not harmful
to the environment (Mahenc, 2008) and (Polonsky and
Rosenberger, 2001) made of materials that can be
recycled to provide product (Dangelico and
Pontrandolfo, 2010), (Chen and Chai, 2010). Its production
process is environmentally friendly (Gurău and
Ranchhod, 2005).”
4. Sustainable (Green) Marketing
• Marketing of Environment Friendly Products
• Started in 1960s in Europe
• Aims at focusing sustainable development
6. Going the GreenWay
• Mc Donald's started giving out its
products in a paper bag to the
customers instead of a polythene
bag, thereby doing “Green
Marketing” at a reduced cost.
• Energy Star certified products
7. Green washing
• When a company makes false claims that is doing “ Green
Marketing” in order to sell its products thereby fooling
the customers
• Disinformation disseminated by an organization so as to
present an environmentally responsible corporate image
- Poonam Anand Keller
15. Terrachoice Study 2010
• Investigated 4744 “ Green products” in US & Canada
• Found more than 95% are green washed
• In countries like US & Canada, who are having strong
market regulatory framework, green washing rate is
more than 95%.!
• So, what would be in India???
16. Six Sins of GreenWashing
The sin of the hidden trade off
The sin of no proof
The sin of vagueness
The sin of lesser of two evils
The sin of irrelevance
The sin of fibbing
Source:Terrachoice (2010)
17. The sin of hidden trade off
• Suggestion of being green, based on a single
environmental attribute, while blurring all other
parameters which are may be more important
• Eg.: Lexus SUV, Recycled Paper
18. The sin of no proof
• An environmental claim that cannot be substantiated by
easily accessible supporting information, or by reliable
third-party certification, commits the sin of no proof
• Eg.: Pampers Eco Friendly
19. The sin of lesser of two evils
• Claiming to be greener than other products in its
category when the category as a whole may be
environmentally unfriendly.
• Eg.: Organic Cigrattes, Electric Cars
20. The sin of vagueness
• Sin of vagueness is committed by every claim that is
poorly defined or broad that its real meaning is likely to
be misunderstood by the intended client.
• Eg.: Products endorsed with “ Chemical Free” tags
• Visa green Card
21. The sin of irrelevance
• The sin of irrelevance is committed by making an
environmental claim that may be truthful, but is
unimportant and unhelpful for customers seeking
environmentally preferable products. Its irrelevant and
thereby distracts the customer from finding out a truly
greener option.
• Eg.: CFC Free refrigerators
22. The sin of fibbing
• Fibbing is committed making environmental claims that
are simply false.
23. Why no root solution?
• Green washing is an unexplored area due to several
factors such as:
• Corporate lobbying
• Lack of evidence
• Regulatory loop holes
• Lack of knowledge
24. Tips to avoid Green washing in real life
• Read the fine print
• Research on web
• Beware of buzz words
• Relevance
• Beware of major event sponsors
• Certifications & Endorsements
25. Problem ‘Green’ Words
Green
Eco
Environmentally friendly
Energy efficient
Recyclable
Carbon neutral
Renewable
Green energy
100% Natural
Truly Natural