Session 3, de Vries
14
How Organizational Communications Affect Consumer Perception of Corporate Greenwashing Gerdien de Vries, Bart W. Terwel, Naomi Ellemers, Dancker D. L. Daamen Social and Organizational Psychology, Leiden University; CATO-2 WP 5.2 Project
Transcript of Session 3, de Vries
How Organizational Communications Affect
Consumer Perception of Corporate Greenwashing
Gerdien de Vries, Bart W. Terwel, Naomi Ellemers, Dancker D. L. DaamenSocial and Organizational Psychology, Leiden University; CATO-2 WP 5.2 Project
Possible negative effects: Consumer protest and boycott,
financial loss, and decreased credibility
Perception of Corporate Greenwashing: When people perceive a company to present itself as more environment-friendly than it actually is
1. A hotel’s request to reuse towels in order to save the planet?2. A mineral water producer providing African children one day of clean
drinking water for every liter water sold?3. An oil and gas company investing in a technology that helps
reducing CO2 emissions?
What is perceived as corporate greenwashing?
Green Communications
BP’s “Go Green” campaign (2000)- Environmental concern - Investment in environmental technologies- Positive evaluations expected
However…- Environmental concern questioned (LeMenestrel et al., 2002)
- Negative evaluations (lower corporate credibility) (García, 2011)
Are energy companies perceived as greenwashing when communicating a CSR motive for investment
in an environmental technology?
CommunicatedMotive
PerceivedCorporate
Greenwashing
Experiments
1. Three experiments University Leiden
2. Background info on energy company investing in environmental technology (CO2 capture and storage technology)
3. Company webpage with reason to invest: CSR-motive versus economic motive (except for baseline group).
4. Questionnaire
5,17
3,43
1
2
3
4
5
6
7
Perceived CorporateGreenwashing
Results: Perceived greenwashing
4,96
3,65
1
2
3
4
5
6
7
Perceived CorporateGreenwashing
5,50
3,56
5,79
1
2
3
4
5
6
7
Perceived Corporate Greenwashing
CSR motive
Economic motive
Baseline (no motive)
Exp.1 Exp. 2 Exp.3
F(2,54) = 15.52, p < .001, η2 = .37 F(1,44) = 11.11, p = .002, η2 = .20 F(1,52) = 27.54, p < .001, η2 = .35
Why are energy companies perceived as greenwashing?
- Firm-serving motives expected (Spangler & Pompper, 2011; Terwel et al., 2009)
- Inconsistency > suspicion of strategic behavior (public relations)
- Suspicion of strategic behavior > feelings of insincerity (Campbell & Kirmani, 2000; Terwel et al., 2009)
CommunicatedMotive
Suspicion of StrategicBehavior
PerceivedCorporate
Greenwashing
Results: Suspicion of Strategic Behavior
5,54
4,26
1
2
3
4
5
6
7
Suspicion of StrategicBehavior
EnvironmentalmotiveEconomicmotive
F(1,44) = 13.81, p = .001, η2 = .24
Exp. 2
CSR motive
Economic motive
5,87
4,61
1
2
3
4
5
6
7
Suspicion of StrategicBehavior
EnvironmentalmotiveEconomicmotive
F(1,52) = 15.32, p < .001, η2 = .23
Exp. 3
Results (Mediation Model)
CommunicatedMotive
Suspicion ofStrategicBehavior
β = .59** / β = .38*
** p < .001* p < .01
Sobel z = 2.70, p = .007PerceivedCorporate
Greenwashing
β = .48** β = .44**
CommunicatedMotive
Suspicion ofStrategicBehavior
β = .45* / β = .24ns
Sobel z = 2.28, p = .022PerceivedCorporate
Greenwashing
β = .49* β = .42*
Exp. 2
Exp. 3
Conclusions
People perceive an energy company as greenwashing as soon as they hear that it invests in an environmental technology
Communication of an economic motive decreases perception of corporate greenwashing. Communication of a CSR motive does not.
Communication of a CSR motive leads to perceptions of corporate greenwashing because people suspect the energy company of strategic behavior.
- Companies with ‘damaging’ reputations (e.g., tobacco and energy industries) who engage in CSR activities in the domain of their core business are regarded as hypocritical (Yoon, Gürhan-Canli, & Schwarz, 2006).
-“If they want to save the world or prevent cancer, they could better end their core business!”
- However, when they communicate an economic motive for these activities they are perceived as ‘honest’.
Conclusion
Are companies with neutral reputations also perceived as greenwashing when they are involved in CSR activities in the
domain of their core business? Or do they benefit from this high fit?
Discussion
Thank you for your attention. Questions?
Gerdien de [email protected]
This research is part of CATO-2, the Dutch national research program on CO2 capture and storage. CATO-2 is financially supported by the Dutch government and the CATO-2 consortium parties.
