Sustainability is just about PR
Initially many businesses adopted sustainability to improve or maintain their reputation – and having genuine and effective sustainability initiatives does boost your reputation if you communicate effectively about what you are doing. BUT, as many have found, it only works if you are genuine and honest in your attempts to improve. Consumers and others are quick to see through ‘greenwashing’. In Australia, the ACCC has signalled it is cracking down on businesses that falsely make sustainability claims (greenwashing). Businesses that exaggerate benefits from their products, over-emphasise the positive environmental or social impacts they are creating while ignoring negative impacts, or make other claims that don’t stand up to scrutiny often experience negative impacts over time, such as a loss of trust from their customers, or an ‘unmasking’ of their false claims or exaggerations. This can lead to share price decline, loss of market share or other financial penalties. PR is best when it is true.