How Greenwashing to "Check the Box" for CSR Affects Consumer Loyalty and Brand Image
- Julia Wagner
- Dec 4, 2022
- 3 min read
Corporate social responsibility (CSR) has radically changed the way organizations operate because of societal expectations and perceptions. While businesses were once evaluated purely on their products or services, they are now seen as people and are obligated to make rational and selfless decisions like a person would. Expected to do good for others and hold themselves to greater ethical standards, businesses now present themselves with a unique personality and value set, as well as build relationships with other brands, their employees and their consumers.
Greenwashing
A prominent way that companies have jumped on this is by presenting themselves as a “green” company. Sustainable packaging, planting trees for every purchase, donating to conservation efforts and switching to renewable energy sources are some examples. But a problem arises when companies make these promises without any action or commitment to lowering their environmental impact.
This so-called “greenwashing” has become a greater issue as the demands of CSR are increasing and consumers are becoming more environmentally conscious. Customer loyalty is built on authenticity and trust and brands that greenwash are consequently hurting their image and credibility.
Coca-Cola Company is Guilty of Greenwashing
One recent example was Sprite’s claim that they were switching from green to clear plastic bottles which are “more easily recycled.” Sprite bottles are made of a type of plastic called PET, which is food-safe and commonly used in food industry packaging. PET can be recycled into other plastic bottles, clothing, carpeting, construction materials, etc. Clear plastics are easier to recycle than colored plastics, so the Coca-Cola Company’s switch was welcomed by environmentalists. However, many challenged their decision by saying it was not a big enough step for the massive company to be making when only 30% of PET is currently being recycled. Some claimed that they should be moving to eliminate their plastic production completely, while others claimed that their reasons for making the switch were altogether selfish.
One viral TikTok showed pictures of landfills where Sprite bottles were so easy to find that it was creating a bad look for the company because they were being associated with plastic waste. They claimed that the Coca-Cola company was trying to escape backlash and be seen as a green company while still contributing massively to landfill waste.
Another user posted a TikTok suggesting what Coca-Cola and other producers of drinks sold in plastic bottles create refill stations which would allow users to keep their bottles and refill them at a lower cost. This ultimately generated tons of negative press for the brand and demonstrated the importance of backing your CSR with accurate and truthful promises. This scenario also showed that today's generation will research everything a company releases and can very quickly turn a large population against them.
How Athletic Greens Handles Sustainability
Let’s look at Athletic Greens’ sustainability claims and what’s behind their promises. On their FAQ page they talk about their sustainability efforts:
We offset 100% of the carbon generated by our international freight shipments through Carbonfund.org
We have eliminated packing slips in all USA shipments to reduce paper consumption
All of our supply chain partners are cGMP certified
We aim to follow sustainable business practices that don't harm the environment - we have no central office, use no paper, and are a majority ecommerce business
I looked at ClimateNeutral.org, a website that evaluates the sustainability of companies and provides climate neutral certifications. They define climate neutral as “a state in which human activities result in no net effect on the climate system by balancing residual greenhouse emissions with reductions or removals”
Athletic Greens was first certified in 2020 and has remained a climate neutral company. They categorized their emissions in three scopes, including emissions from buildings, fleets, and equipment (0 tCO2e) emissions from electricity (0 tCO2e) and emissions from raw materials, manufacturing, shipping, air travel, and other supply chain activities (61,044 tCO2e).
To offset their emissions, they invested $262,662 in projects preventing deforestation to compensate for their emissions. They offset their emissions by 19,029 tCO2e, which is the equivalent of taking 4,370 cars off of the road for a year.
Athletic Greens is also actively establishing and meeting sustainability goals. Their long-term goal is reducing their emissions 50% by 2030. This year, their goals are reducing air freight emissions by at least 10% by using alternative shipping methods, eliminating disposable plastic scoops from AG1 pouches by including a reusable metal scoop with their first purchase and reducing their reliance on international production to reduce shipping emissions by sourcing items in the United States.
This information was credible, easy-to-find and included reliable sources. Each goal was backed with actionable steps and measurable for effectiveness. Consumers who prioritize supporting sustainable companies would be likely to purchase from Athletic Greens. As a result of their truthful CSR efforts to be a green company, they have become a leader in creating change and being accountable for their impact as a business.
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