Question

Chapter 14 in our textbook discusses how more and more companies are adopting policies of environmental sustainability. Many companies recognise that they must respond to consumer environmental concerns, and also do their part to address the global issue of climate change. Even though many companies are “greening” their practices, such as by using compostable packaging and energy-efficient lighting in their factories, other companies are “greenwashing” their products and marketing to appear more environmentally sustainable than they actually are. For example, one popular cleaning company rebranded its packaging a few years ago to include nature-oriented colours. The packaging also included unsubstantiated claims about the natural sources of its ingredients.

1. a) Describe what environmental sustainability is and outline the FOUR practices of environmental sustainability.

2. b) Provide two examples of environmentally sustainable practice and explain how a company could implement these examples.

3. c) Discuss two ethical issues that are raised when a company uses “greenwashing” tactics in its marketing.

Answer 1

1. Environmental sustainability

Environmental sustainability is a concept which allows for the needs of humans to be met without jeopardizing the ability of future generations to meet their needs. Environmental sustainability is defined as responsible interaction with the environment to avoid depletion or degradation of natural resources and allow for long-term environmental quality.

The practice of environmental sustainability helps to ensure that the needs of today's population are met without jeopardizing the ability of future generations to meet their needs. It refers to the use of economic resources in a smart and effective manner by the current users to ensure the availability of resources for future generation.

4 Practices of Environmental sustainability:

1. Organization goals must integrate environmental sustainability. It helps to set targets while keeping environmental sustainability in mind.
2. Internal policies should be developed and implemented in such a manner that it ensures environmental sustainability is valued
3. Support public policies that put a stable price on externalities like GHG emissions and other environmental risks.
4. Establish and manage metrics that comprehensively indicate risks and opportunities across the corporate value chain.

b. Practices of Environmental sustainability

• Reduce waste by choosing products that have minimal packaging and can be used productively and then recycled.
• Re-use containers, packaging or waste products, wherever possible.
• Consider sustainability issues when making planning and managing decisions.
• Aim to continually improve environmental performance by identifying and addressing environmental risk.
• Make resources available to implement environmental risk management procedures.
  c. GREENWASHING AND ISSUES INVOLVED
• Greenwashing is the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, and technology or company practice. Greenwashing can make a company appear to be more environmentally friendly than it really is. It can also be used to differentiate a company's products or services from its competitors by promising more efficient use of power or by being more cost-effective over time.

1. Ethical issues involved:

1. It is misleading, deceptive and conveys an incorrect image of the company. It shows that the company is more environment friendly than it actually is. Company follow these practices to improve its sale and create a positive image.
2. This reduce customer confidence in genuine environment friendly products and services.