Page 271 - (DK) The Business Book
P. 271

SUCCESSFUL SELLING         269

        See also: Crisis management 188–89   ■  Avoiding complacency 194–201   ■  Morality in business 222   ■
        Creating an ethical culture 224–27   ■  The appeal of ethics 270


               he notion of “greenwashing”   circumvented or public relations   environmental angle, these
               emerged during the rise    problems to be solved. However, in   companies frequently appeared in
        T  of the environmental          1985, news of the hole in the ozone   the press. Their publicity made the
        movement in the 1990s, and it    layer led to a successful consumer   adoption of green policies and
        refers to the perceived practice by   boycott of aerosols propelled by   products even more alluring.
        corporate and government sectors    chlorofluerocarbons (CFCs), which   At the same time, there was
        of adopting an environmentally   were considered one of the main   growing evidence that consumers
        friendly veneer. In the same way   threats to the ozone layer. As the   did not believe everything they
        that public-interest issues are   ground swell of consumer support   read or saw and had developed
        described as “whitewashed” when   for the environmental movement   a general scepticism about the
        they gloss over difficult aspects or   grew, marketers saw an advantage   business world’s green intentions.
        cover them up, so “greenwashing”   in aligning their products and   However, the corporate world still
        is defined as putting a surface   corporate identity with green issues.  saw a commercial advantage in
        gleam over environmental topics     The marketing world first      being green, and marketers began
        to detract from any serious      seemed to embrace the concept    to adopt strategies to try to connect
        discussion or definitive action.  of safeguarding the environment   with eco-aware consumers.
           Environmental activist and New   after the release of the Brundtland   Greenwashing has appeared
        Yorker Jay Westerveld was the first   Report in 1987 (see box). The 1990s   in surprising places. The nuclear
        to use the word in print, in a 1986   were forecast as heralding a green   industry has tried to dispel its
        essay about the practice of hotels   revolution, and businesses rushed   reputation for being dangerous by
        asking guests to avoid using too   to associate themselves with   presenting nuclear power as a
        many towels, in order to reduce   environmentally friendly products   remedy for global warming. Arms
        laundering and help the environment.   and processes.             manufacturer BAe announced in
        Westerveld interpreted this as a ploy                             2006 that it was making “lead-free
        to save money rather than the planet.   Green companies           bullets.” Marketers need to
                                         Businesses such as The Body Shop   remember that the public is
        Growing movement                 and Volvo had already adopted    generally able to distinguish
        Until the 1980s, business managers   green strategies as early as the   between policies and practices that
        mostly treated environmental     1970s, and because the media     are genuinely eco-friendly, and those
        issues as potential obstacles to be   were looking for stories with an   that are simply greenwashing. ■

          Shades of green                By the mid-1990s, however,
                                         several key studies revealed
          In the years after the release    that there was an inconsistency
          of the 1987 United Nations     between consumer intent and
          Brundtland Report calling for   consumer action when it came          The incidence of …
          protection of the environment,   to paying higher prices for green   greenwash—outright,
          the volume of green advertising   products. There were also
                                                                              purposeful untruths …
          and campaigns increased        worries over the negative effect
          dramatically. Between 1989     that green strategies might have    is probably not that high.
          and 1990, green product        on the attitudes of shareholders.     But there’s an awful
          launches in the US doubled.       These factors may have led         lot … that gets close.
          They continued to expand       to a form of greenwashing where       Andrew Winston
          through the early 1990s,       organizations make genuine but       US environmental strategist
          buoyed by market research      minor changes to products or
          showing that consumers were    processes to present a green
          interested in environmentally   face, but do not let environmental
          responsible products.          issues dent the bottom line.
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