Thinking of Greenwashing? Just bad business

While a more environmentally conscious society is certainly desirable, the push of this rhetoric can be overwhelming and may even have the opposite effect: desensitization. In business, going green clearly offers potential benefits for your corporate culture, community relations, and, of course, the environment. But if your primary motive is profit—well, it’s far from a proven strategy. Further, if your company is perceived as “greenwashing”—talking the green talk in an effort to boost sales but not necessarily walking the green walk—your brand value, and ultimately your profits, may actually suffer.

An article in the April 30 issue of Advertising Age—“Going Green? Plant Deep Roots”—presents varying reasons why companies do not necessarily benefit from green campaigns and may lose money and damage their image for their efforts. Going green is “a perilous business,” the article warns, “especially for those whose actions aren’t as substantive as their ads.” It points out that perception concerns drove the low-key approach taken by Levi’s in the launch of its “Eco” organic cotton line—concerns validated by the backlash companies like General Electric and Wal-Mart have experienced when they’ve marketed their green-ness more aggressively. Clearly, one challenge of claiming “green” is that you invite criticism from those who will say you’re not “green enough” to make such claims.

But this actually parallels what Kolbrener has long preached about any sales or marketing claim. In seeking and evaluating a company’s brand attributes we always ask two crucial questions: What claims can you make that you never fail to deliver on? What claims can you make that your target audience will believe? In the first case, this isn’t just an ethical question—again and again companies that promise more than they can deliver end up undermining their brand value, damaging market perceptions and alienating the very audiences they hoped to win. Point blank, false or misleading messages almost always hurt your business, and they open the door to a public relations nightmare. If you’re tempted to claim that your product/service is environmentally friendly, but know that the claim is only partially true, nix the idea. We say the same about all claims, but honest advertising is particularly vital if you’re going green.

The second question is equally important—if a bit more complex. As General Electric has shown, doing and promoting good works doesn’t mean everyone will instantly believe in your goodness—and the promotion itself may draw more skeptics and critics than believers. There are plenty of reasons to move your company toward the green end of the spectrum; but from a marketing standpoint, you have to gauge your audience’s capacity for belief before you make decisions about promoting your green side. In many cases, as Levi’s showed, the key to avoiding a green backlash is to be subtle with green marketing and steer clear of broad claims and minute details that can easily be picked apart by anyone with access to the Internet.

If you’re green-curious, we’d love to talk about it. We absolutely cheer on any efforts to protect the environment. But in terms of green marketing, we take a more cautious approach. Greenclaiming is no magic bullet to stimulate sales—and the risk of backfire is real. Going green? Good for you. Greenwashing? We’ll be the first to tell you that it's not even good for your bottom line.