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?claims in the knowledge that In 2008, the company paid a environmental practices or ‘green’
consumers may not easily be able US$975 000 fine for violating the Clean products – and they are financially
to assess the validity of their claims. Air Act at one of its manufacturing plants benefitting by being unethical.
in Connecticut in the US. It has also
Honesty is undoubtedly the best paid substantial fines relating to a large Fortunately, a growing number
policy in dealings with all stakeholders number of unresolved asbestos lawsuits. of shrewd business leaders have
and even ‘white’ lies are unacceptable, discovered that doing the right thing for
no matter how insignificant they may The most famous recent example of the environment actually does tend to
appear to be. a greenwasher being found out is that increase profitability. It thus makes good
of Volkswagen, which rigged 11-million business sense for a company to reduce
Greenwashing is an unethical diesel engines with software that tricked its environmental impact and seek ways
practice and creates of an illusion emissions tests, allowing the cars to to improve its products and processes.
of environmental sustainability that spew out far more pollutants than
could have dire social consequences, allowed. As the New York Times reported What may well be beneficial is
as consumers will continue to use in its October 17 2015 issue: “No matter for businesses to move away from
products and support companies that how hard Volkswagen works to resolve green marketing to environmentally
further degrade the environment and this crisis, the episode is likely to live on sustainable marketing – in which there
reduce the quality of living conditions in infamy as the latest and perhaps most are metrics that are considered reliable
for future generations. egregious example of greenwashing.” enough to convert environmental
commitment into real customer value.
BEING FOUND OUT SUBSTANTIATE CLAIMS
Can businesses who transgress be Businesses need to substantiate The world’s resources are diminishing
found out? They certainly can, with one all the claims they may be making daily and companies must increasingly
such example being Pfizer, the world’s focus on operating ethically and
largest pharmaceutical company. ? sustainably. They also need to actively
According to Eco-Chick, a website that Volkswagen is a fight the threat of climate change, which
promotes green fashion and beauty, recent example is catastrophic for sustainability.
the company has reportedly engaged of greenwashing
in air and water pollution, disregarded If organisational governance is sound,
safety standards and experimented on about ‘green’ products and services, sustainability will take centre stage in
Nigerian children. ‘environmentally friendly’ goods and the integrated reporting initiatives. Such
‘sustainable’ practices, since these initiatives are based on recommendations
The website also alleges that Pfizer will be scrutinised by environmental and also regulatory frameworks like the
has fought efforts to make HIV/AIDS watchdogs, certification agencies, Greenbury and Cadbury Reports (UK),
drugs more affordable and has refused consumers and other organisations Sarbanes-Oxley (USA) and the King III
to grant generic licenses for these bent on exposing unethical practices. and IV Reports (South Africa), all of which
drugs to be manufactured in Brazil, encourage organisations to produce
South Africa and other countries in Remember, when a positive integrated reports that communicate
need of them. reputation is lost it becomes very their strategy and performance to the
difficult to regain. external audiences.
VW’s diesel emissions greenwashing scandal
evoked global outrage I am not suggesting that all Angelo Nicolaides
companies which claim to be ‘green’ is a Professor of
are lying to increase their bottom Business Ethics
lines. There are many which truly care and also teaches
about the environment and global Stakeholder
sustainability. However, there are others Management and
that purposefully mislead consumers Governance at the
about the supposed benefits of their University of South
Africa Graduate School of Business
Leadership. He is a member of various
bodies such as the International Institute
of Public Ethics (Australia), EthicsSA and
the International Association of Ethics
Education (USA).
October 2016 – January 2017 strategicmarketing 37
