Reading 6: Greenwashing, Certifications, and Consumer Trust

 

1. Which of the two models—conventional or sustainable—best reflects the type of organization you would want to work for? Explain why.

 

As a supply chain major that wants to preserve the Earth as much as I can for the future generations, I would prefer to work for a sustainable organization. A sustainable business focuses on social and ecological wellbeing rather than just profits which is something that resonates with my values. With the increase in global supply chains and the greenhouse gas emissions from transportation, I feel that I have to contribute to sustainability and it would be much easier to do it from within a company that already has these values. Working for a company that contributes positively to society would be more fulfilling to me.

2. Choose one business function. How might it operate differently in a sustainable business?

Marketing would be the most visible change in a sustainable business. For example, in the fashion industry where overconsumption is encouraged, a sustainable fashion brand would focus more on transparency, education, and encourage responsible consumption. This approach would help the company with better publicity while aligning the business with long-term sustainability goals. Marketing plays a major role in shaping consumer behaviour so this shift is critical to be a sustainable business.

3. Think about a product you regularly purchase. Have you noticed any sustainability labels? How confident are you in those claims?

A lot of clothing I buy have labels such as "eco-friendly", "sustainable", or "made from recycled materials" however after reading this section I feel that I could have been mislead when I made these purchases. This reading clearly explains that companies use vague language to mislead consumers by highlighting one positive aspect while masking the much larger impacts. An everyday consumer may not have the knowledge to distinguish between what's actually sustainable and not. However, this is where third-party certifications come in. In order to receive these certifications the product and process must be independently audited.

4. If you were responsible for sustainability strategy in a company, how might certifications help build credibility? What limitations should you be aware of?

Certifications, as mentioned earlier, require an independent verification process therefore can help build credibility. These certifications evaluate companies based on established industry standards which can help increase stakeholder trust. By obtaining these certifications, a company could strengthen its brand image and gain a competitive advantage.

However, it's not all good news. Certifications may only focus on a few specific aspects of the whole process and not the whole picture. Also, obtaining these certifications could be complex and costly.