Greenwashing in CSR: Why you should avoid it for an effective sustainability program.

For the past few years, Corporate Social Responsibility (CSR) in Malaysia has been gaining momentum, especially in the environmental sector. The trend that we are seeing is that companies incorporate CSR into their sustainable business strategy.

Understanding Green Marketing & Greenwashing

Green marketing refers to promoting products, services, or business practices based on their environmental benefits. Companies often integrate green marketing with their CSR strategies to emphasize their commitment to sustainability and environmental responsibility.? However, for businesses to appeal to environmentally conscious consumers, some may do a misleading practice where they exaggerate or falsely claim to be environmentally responsible a.k.a "greenwashing,". For example, as part of company's CSR program, companies often launch campaigns focused on environmental conservation (e.g., tree planting, plastic reduction).

If we want to talk about plastic reduction campaigns where companies claim to cut down on plastic usage in certain products or packaging, but still continue to rely heavily on plastic in other areas. This selective emphasis on "green" actions gives the impression of environmental responsibility while distracting from less sustainable aspects of the business. Consumers are misled into believing the company is more environmentally conscious than it actually is, which could damage trust if the truth becomes known.

Some other common forms of greenwashing includes

???? Using ambiguous terms such as "natural," "eco-friendly," or "sustainable" without providing clear definitions or evidence.

???? Using symbols or green colors in packaging to imply environmental responsibility without legit backings.

???? Highlighting certifications that don’t address the product’s most harmful environmental impacts.

???? Highlighting one small environmentally friendly feature while ignoring larger negative environmental impacts.

How Greenwashing Harms CSR

When companies engage in greenwashing, it damages the integrity of their CSR efforts. Instead of creating real, lasting change, the focus turns to quick gains and looking good. This can leave consumers disappointed, and stakeholders like investors, employees, and regulators may start to doubt the company's CSR initiatives.

Avoiding Greenwashing

To maintain authenticity in CSR initiatives, companies should focus on transparency, honesty, and measurable impact. Below are some strategies to avoid greenwashing:

???? Clear Communication: Avoid vague environmental claims. Instead, use specific, measurable, and layman's terms.

???? Third-Party Verification: Engage in reputable third-party organizations to audit and verify sustainability claims, ensuring that the company meets recognized environmental standards.

???? Long-Term Commitment: Sustainability considerations should not be a short-term marketing gimmick. Businesses should demonstrate long-term commitment through consistent practices that prioritize ESG goals too.

???? Holistic Approach: Address environmental impact across all areas of the company’s operations, not just in small parts of the business.

???? Engage Stakeholders: The most important thing to remember is to try and involve external stakeholders, including relevant NGOs, community leaders, and consumers, in the creation and evaluation of CSR programs.

Focusing on long-term environmental and social impact is key here. Rather than short-term marketing gains, businesses can build stronger, more trusted brands while contributing positively to the planet.