Social media helps protect consumers against greenwashing

Over the last decade, there has been a sharp rise in environmental claims from products. Sustainable sourcing along with no artificial ingredients were identified as the leading claims in the packaged food, beauty and personal care sectors, according to a Euromonitor report last November.

This is not surprising. Today, consumers have greater expectations from brands. They care more about their social responsibilities and the impact of their purchasing decisions on the environment and their health.

Environmental issues are a high priority among many stakeholders. Sustainable packaging is a growing concern in this area. To tackle this, Dubai launched Dubai Can in February — with the cooperation of more than 500 destinations, hotels, attractions and malls — which plans to cut single-use plastic bottles, while Abu Dhabi has announced it will ban single-use plastic bags from June 1.

It is hard to imagine a company today that does not have a sustainable pledge. Companies, across all industries, understand the importance of addressing these spurring issues and are responding with new sustainability initiatives and enhanced transparency. Adidas produced 17 million pairs of shoes last year with recycled plastic, while Tiffany & Co. launched its own diamond source initiative, which discloses the origin of its new gems.

Companies that address these issues and adapt to consumer concerns believe such moves will protect their revenues and boost their reputations. Around 73 percent of businesses consider brand reputation the main reason for investing in sustainability, reports Euromonitor.

But the journey of an ethical consumer is fraught with obstacles. The first impediment is price. Although research indicates that consumers are more likely to spend on sustainable products, the willingness of consumers to prioritize environmental and social issues may be vanquished by cost savings. It is important to remain indulgent; sustainable goods are usually more expensive.

Secondly, the abundance of products that carry sustainable claims is often confusing. Greenwashing must be considered here which can be defined as the disconnection between practices and the promises.

This practice ranges greatly, from the overuse of tree symbols to shades of green to using label such as clean or natural on packaging with no validation. Greenwashing can also entail adding unnecessary information such as the case of a freshly squeezed juice company deciding to add a Vegan label to its packaging.

A few questions need to be asked to distinguish between greenwashing and genuine sustainability claims. Has the company put in place a significant sustainable program? Can it be measured? Can we track its progress?

Consumers also often face situations where they simply do not have access to critical information about what a company is doing in this area. But to combat this, an increasing number of brands are becoming more transparent.

The luxury Fogo Island Inn hotel in Canada displays a breakdown of the costs and margins of a night’s stay to consumers, allowing them to see the true costs and how much is reinvested in the community.

However, companies that practice greenwashing are likely to face a backlash from consumers. Consumers do not hesitate to share their views on social media today, which can have an instant effect on the company.

US leather goods maker Coach was forced to say it would stop destroying damaged handbags after a viral TikTok video accused it of slashing handbags and throwing them in a dumpster outside a mall in Dallas last October. Just three days later, the firm said it would no longer destroy returns of damaged and unsalable goods, adding that from now on these items would be reused in its handbag repair program. From a rational analysis, German-born economist Albert Hirschman has said that dissatisfied consumers have three possible actions when faced with failing organizations. The first is Exit, where the consumer is not satisfied and decides to opt for another brand. The second is Loyalty, where despite the brand’s weaknesses, or due to the lack of an alternative product, the consumer speaks with the company and remains loyal. The final option is Voice, where the consumer complains, and may also use the threat of exit, to force change.

Driven by an invigorating sense of responsibility, the vocal ethical consumer plays a growing role in decisions taken by companies today.

May Barber is a LEED Green Associate Architect

and brand management adviser focused on building

brands with purpose.

Mourad Ben Ayed is a seasoned adviser in finance

and strategy focused on purpose-driven businesses

and an educator at the American University in Sharjah.