Transcript Public Eye Global

From Greenwashing to
Believeable Green Branding
Peggy Simcic Brønn, BI
January
2007
Top 10 Green Brands,
WPP
Whole Foods
Wild Oats
Trader Joe’s
Toyota
Honda
Sub Zero
Ikea
Body Shop
GE
Aveda
Landor Associates –
Most Green
Automotive:
Toyota
Lexus
Ford
General Motors
BMW
Petroleum and
Energy:
BP
Exxon Mobil
Chevron
Royal Dutch Shell
Chevron Texaco
Public Eye Global
Public Eye Swiss
Public Eye Positive
Bridgestone
Corporation
Novartis
Coop
Ruag Holding
Eosta
Xstrata
Marks & Spencer
Ikea Group
Trafigura Beheer
B.V.
“GREEN MARKETING” OF
1980’S AND 90’S: PHASE I
• Type of advocacy advertising
• Raised profile of environmental
issues
BACKLASH TO GREEN MARKETING
• Media loved attacking firms showing off their green
image
• UK’s “Green Con of the Year Award”
• Basic philosophy - selling
• 65% of consumers agree business only use to sell
• Volume of messages only creating more doubt and
confusion
Greenwashing
1. the dissemination of misleading
information by an organization to conceal
its abuse of the environment in order to
present a positive public image
2. the information so disseminated
Greenpeace’s Greenwashing
detection kit
• The "greenwash" tag applies to any corporations
that use the media to make environmental
claims about one or more of their cleaner
products, while continuing "business as usual"
practices which rely, for example, on large
amounts of natural capital, are energy intensive
or inefficient, or which involve production and
release of toxic chemicals.
• The term is now used to refer to a wider
range of corporate activities, including, but
not limited to, certain instances of
environmental reporting, event
sponsorship, the distribution of educational
materials, and the creation of "front
groups." (Business Ethics)
• BA's concern about climate change
"nothing but greenwash and spin".
Green Advertising and Green Public
Relations (Nakajima 2001)
• Are pervasive and misleading
• Sometimes outright lies
• Provide society with a distorted view of corporate
environmentalism
• Block access to more full and objective information
• $500 million to $1 billion spent on green PR in US
annually
• Most filtered through PR firms
How Business Misleads Us to Create a
Greener Image (Nakajima 2001)
• Third-party endorsement
• Research for hire
• Funding anti-environment organizations and
right-wing think tanks
• Targeting children and education system
• Industry coalitions promoting inaction (Global
Climate Coalition created by BursonMarsteller)
How We are Misled cont’d
• Forwarding the idea that helping the environment will
result in lost jobs and economic turmoil
• Shifting the blame
• Focusing on positive sides of industry (Monsanto claims
RoundUp saves endangered species)
• Attacking environmentalists
• Partnerships with NGOs such as environmental groups
(sitting on boards, fund raising, funding conferences,
funding joint publications)
Is Big Business Buying Out The Environmental Movement?
by Philip Mattera, Good Jobs First
June 5th, 2007
US: Green group attacks oil giant on climate research
by Alison Benjamin, Guardian Unlimited
September 26th, 2007
• "ExxonMobil invests millions of Euros funding thinktanks
and lobbyists committed to blocking internationally
agreed policies to combat climate change whilst at the
same time spending major sums on advertising designed
to present itself as an environmentally responsible
company."
• In the ads, Exxon claims to be reducing its greenhouse
gas emissions. But FoE Europe said data from the
company's corporate citizenship report showed Exxon's
CO2 emissions increased by 8.7m metric tons from
2003 and 2006.
Beyond Propaganda
by John Kenney, The New York Times
August 24th, 2006
A former advertising executive realizes he created one of
the greatest greenwashing campaigns of all time.
• Advertising is a funny business. You get to help shape
the personalities of huge companies. Most often it's for
cellphone service or credit cards or fast food or paper
towels. Rarely are you faced with whether you ''believe''
in a product or service. This was different. This was
serious. I believed wholeheartedly in BP's message, that
we could go -- or at least work toward going -- beyond
petroleum.
• The least credibile source for environmental
information is an ad by a major company (Iyer
and Banerjee 1993)
• 58% of environmental ads contained at least
one misleading or deceptive claim (Kangun et
al. 1991)
• . . . If advertisers continue to misuse their
power in promoting false ecological claims,
then its power to mitigate the imminent crisis
will be diminished (Fisk 1974)
Green Minority
Early 1980s
Green Concern
1985
Green Evolution
1989
Green Bandwagon
1990
Green Con
Sophisticated Green
Early 1990s
Ethical Consumer
2007
PANIC
“GREEN MARKETING” PHASE II
• Whole company must be behind
effort
• Credible green products
• From genuinely green companies
What does being a green brand really mean?
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Is it saying you are so?
Is it donating money to organizations that are ‘green
friendly’?
• Is it creating internal communication campaigns urging
your employees to use paper and other materials
properly and wisely?
• Is it using your brand as a platform to educate and teach
your consumers on what this issue is about?
Consumer Extremes (Kilbourne 1995)
• Anthropocentric reformist
– Green advertising seen as ecologically useful
providing benefits to the consumer and ecology
• Ecocentric radical
– Green advertising is an oxymoron, advocating green
consumption is advocating more consumption – the
only Green product is the one not produced
Landor Associates ImagePower Green
Brands Survey
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Consumers don't understand "Green" when it comes to companies &
brands.
Consumer may be interested in Green, but can't identify it. Sixty-six percent
of the American population can not identify the steps a company can take to
make itself more Green.
Does the packaging make the brand Green? Only fourteen percent of
"Green Motivated" say producing environmentally safe products is what
best describes a Green brand.
The study also found brands with green logos and/or natural packaging (i.e.
Origins, The Body Shop and Kiehl's) rose to the top in the green rankings.
Green Consumers will buy brands they do not consider Green.
In the Fast Food category, the perception of not being Green does not
prevent even the "Green Motivated" individuals from purchasing the
products.
Consumers will also buy in Automotive & Petroleum / Energy industries
regardless of brands' "Non-Green" image.
Sustainable Communication
• ’. . . Working towards a world where humankind can
preserve rather than dominate nature’ (McDonagh 1998)
• Ecological sustainability as a focal point
– Moving society from hyper-consumption to sustainable
consumption
– Demands restructuring of business, government and economy
• Without considering these things the viability of green
branding and sustainable communication becomes a
problem (Kilbourne 2004)
Environmental Activity
in Marketing
Strategies, Structures
and Functions
Level of greeness:
 Not environmentally
active
Communication
Strategy
Objective
 Executional framework
 Message elements
 Slightly environmentally
active
 Consumer benefits
 Environmentally active
 Driving forces
Agencies Doing Their Part
ISO 26000 Proposed Draft Section on
Stakeholder Identification, Engagement and
Communication
• Communication is a means of providing transparency
to stakeholders and is therefore a key part of all social
responsibility activities. Communication also takes the
form of reporting. Image and reputation issues are a
part of this communication process.
• There is a need for transparency, accountability and
preferably standardization in reporting and other
communication with internal and external
stakeholders.
Cont’d.
• Standardization in ‘terminology’ applied by
corporate communication can be very helpful,
although specific organizations or countries
might require communication tailored to their
particular needs.
• The commitment of (senior) management should
be visible.
• IABC is partnering with ISO to work on
project.
Needed
• More rigid ethical and environmental standards
• Must encompass production, consumption and
disposition
• Transforming the consumption process the most
difficult challenge
• Focus on where humans fit in nature and
political reform
• Near at home and dear to heart
Nye regler for markedsføring:
- Disse miljøordene er nå forbudt
• Bruk av utsagn/opplysninger, symboler og/eller
merkeordninger i markedsføringen, som gir inntrykk av at
virksomheten tar særlige miljømessige hensyn, eller at
produktet har slike særlige egenskaper
Den nærmere avgrensningen av hva som er en
miljøpåstand beror på en skjønnsmessig helhetsvurdering
av selve markedsføringen, hvor blant annet ordlyd, layout
på påstandene og bildebruk vil kunne få betydning.
Bruk av skjønnsmessige uttrykk som f.eks.
”miljøvennlig”, ”grønn” og ”ren” vil etter ombudets
oppfatning alltid utløse kravene for hva som er en
miljøpåstand.
Exaggerated Claims
• Toyota Prius: ”Verdens mest miljøvennlige bil”
• Opel: ”Miljøvennlige motorer”
• Peugeot: ”… den kraftfulle og miljøvennlige Hdi
turbodieselmotoren …”
• Suzuki: ”Salgs- og miljøvinneren”
• Smart: ”Prøv verdens mest miljøvennlige og morsomme
bybil…”
• Toyota: ”Verdens reneste dieselmotorer”
• Saab: ”… miljøvennlig turbodiesel…”
Three V’s of
Environmental Marketing
• Visibility - amount of information
• Virtue - actual behavior of
organization
• Verifiability - allowing access to
information
Corporate Communication and the
Environment
• Is perceived as reliable if: (David Bernstein)
– Claims are based on past and present performance
and are easily proved
– The firm undertakes independent assessed audits
and releases results
– Improvements are measured against objectives
– Commitment to environmental performance is at the
board level
– Environmental policy includes educating workforce
– Style avoids extravagant language
1. ASK: What are we making (product or service? Green or not?) How
are we making it? Who are we working with?
2. ASK: how can we make…our passion and vision relevant and
engaging? our consumers into advocates? How can we empower
consumers to make a difference by providing them with education,
infrastructure, events and experiences?
3. ASK: How to ensure that our approach is viewed as authentic?
Transparent? Are all stakeholders aware of our intentions and
progress? Is our vision embedded into the fabric of our company?
4. ASK: How can we inspire consumers? What technology and partners
do we need to gain access to?
5. ASK: What would it take to achieve zero environmental impact and
still meet our consumers’ needs? Can we make consumers more
“responsible”? Achieving “zero” environmental impact will only come
about if changes in consumer behavior can be made; engaging
websites that engage consumers in more responsible forms of
behavior
Conclusion
• Accusations of greenwashing are stronger than ever and
should be taken seriously.
• The environment is an extremely difficult subject.
• There seems to be a general atmosphere of panic.
• Consumers need guidance and help.
• Firms must show evidence of honest and credible
behavior.
• Green branding/corporate communication is necessary
and useful in promoting environmentally-oriented
consumption behavior.
THANK YOU FOR YOUR ATTENTION