Firms with political pals ‘get away with greenwashing’

Companies that spend heavily on lobbying may face less scrutiny when they exaggerate their green credentials, researchers say

Firms with powerful political connections may find it easier to get away with greenwashing, according to new research.

Companies that spend heavily on lobbying and building relationships with politicians could face less scrutiny over their environmental record and the claims they make about it, researchers at Durham University Business School found.

Greenwashing is when businesses exaggerate or misrepresent how environmentally friendly they are, allowing them to cash in on growing demand from customers and investors for greener products and companies.

But the researchers say firms that invest heavily in political connections can gain an extra layer of protection, with politicians having less incentive to expose alleged corporate malpractice.

The findings, published today in the journal International Marketing Review, have prompted calls for tougher independent oversight to ensure companies cannot use political influence to escape scrutiny over claims about their impact on the planet.

Professor Joseph Amankwah-Amoah, of Durham University Business School, said: “For firms, appearing as a socially and environmentally conscious company is a vital marketing tool in today’s day and age – which can often lead to over-exaggeration from organisations.

“For most firms, customers and regulators can have a negative pushback on this, but those firms who’ve invested in political lobbying receive less scrutiny.”

Professor Amankwah-Amoah carried out the research alongside Ahmed Adel Tantawy, of Sheffield Business School, and Samuel Yaw Kusi, of the University of Bradford.

The researchers argue that heavy lobbying and political relationship-building can leave politicians with less incentive to expose alleged malpractice by the companies involved.

They are calling for more consistent rules around the world governing how businesses communicate their environmental activities, alongside stronger and more independent oversight.

Certification schemes, tougher regulatory enforcement and sanctions for breaches could also help deter companies from exaggerating their green credentials, they said.

Professor Amankwah-Amoah said: “Ultimately, what’s needed is independence.

“Regulators and standards bodies overseeing environmental claims must be insulated from the political influence of the very firms they’re meant to hold accountable – otherwise the framework is only as strong as its weakest connection.”

The researchers warned that even apparently tough sustainability regulations risk becoming symbolic rather than effective unless the regulators responsible for enforcing them are protected from corporate political influence.

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