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Greenwashing


CSR has definitely become a norm for companies nowadays, as many have touched on, because it helps to build brand equity and enable consumers to have a more positive evaluation on the company. Many companies have "gone green" as a strategy to promote CSR and increase their brand equity.

However, it is important to note that companies have to be strategic about "going green". Some companies have taken advantage of the benefits of "going green" in efforts to reverse the adverse effects of bad publicity generated for some prior reason. However, these companies would have to be careful because being labelled as a "greenwasher" is a huge possibility.

For those who are in doubt, "greenwashing" is the unjustified appropriation of environmental virtue by a company, an industry, a government, a politician or even a non-government organization to create a pro-environmental image, sell a product or a policy, or to try and rehabilitate their standing with the public and decision makers after being embroiled in controversy."

There have been countless cases of companies that have been caught red handed and not as green as they claim to be, and only going green in efforts reduce the effects of bad publicity. However, those that have done well are seeing positive results such as our very own Royal Plaza on Scotts being awarded the Asean Green hotel award.

Therefore it is important to thread carefully when it comes to "going green". Consumers are becoming increasingly more judicious about companies' efforts to go green. While there are companies who are genuinely making a green effort, other industries such as airlines and oil companies are perceived as "green washing".

One important thing to note is that CSR is not for everyone. Companies dealing with tobacco, alchocol, cigarettes, weapons, casinos etc would be deemed as green washing since it is quite impossible (or debatable) to relate their very efforts of being in that (socially irresponsible?) industry and at the same time developing CSR.

Therefore companies need to back up their green branding with real actions across the value chain. Engaging their customers in honest dialogue is vital if they want to make a lasting claim.

Partially adapted from: Marketing magazine, Feb 2008, pg 24 - "Caught Greenwashing?"

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