It has never been more important for companies to show a positive environmental impact. But when a business tries to clean up its act, it can often meet with controversy, opening itself to accusations of ‘greenwashing’.
Greenwashing is the practice of making an organisation seem more environmentally responsible than it is. For example, Nestlé Waters Canada was criticised for a 2008 ad which claimed that “bottled water is the most environmentally responsible consumer product in the world”. And in 2019, energy giant BP ran an ad campaign centred on its low-energy products, when 96% of its annual spend was still on oil and gas; the ad was withdrawn.
Greenwashing is a particular concern at big corporations, as is ‘bluewashing’, the practice of making an organisation seem more socially responsible than it is. However, it seems to happen less at small and medium-sized enterprises. They often have a closer connection to the areas in which they operate, helping them run more effective environmental and socially sustainable initiatives. What lessons might SMEs have for larger operations?