Environmental Claims Meet with Consumer Doubts

It seems that everybody these days is leaping on the “green” (or clean technology) bandwagon. I’ve seen press releases and ads taking the moral — i.e., green — high ground from companies in virtually every industry, from financial services and professional services to pharmaceutical and technology.

It’s no surprise to find that the blogosphere is exploding with talk about environmental issues. According to Nielsen Online, sustainability buzz more than doubled between September 2006, when blogger messages on the topic totaled 83,000, and December 2007, when they had skyrocketed to 172,000.

Unfortunately, one of the most popular blog topics is corporate hypocrisy — also known as “greenwashing” — where companies misrepresent their commitment to sustainability with aggressive PR campaigns. Greenwashing was the topic in 25% of all sustainability discussions on the web in 2007, according to Nielsen.

Confirming consumer skepticism, a recent web survey by Burst Media, an online media and technology company, found that while 70% of respondents recalled seeing green ads at least occasionally, more than 20% said they never believe the claims. Two-thirds say they only believe the claims sometimes.

Before you risk overstating your company’s use of clean technology, check out the Federal Trade Commission’s Guides for the Use of Environmental Marketing Claims. Issued by the FTC in cooperation with the U.S. Environmental Protection Agency (EPA), they can help ensure that your company’s green claims don't run afoul of the law.

A Reputational Roller Coaster Ride for Accountants

The accounting industry has successfully redeemed its reputation from its rock-bottom low in 2002, according to Gallup’s most recent Business & Industry Sector Ratings. But even now, complacency represents a serious threat … witness the effect of the subprime mortgage scandal on Bear Stearns. While the reputation of its management may have been besmirched, the credibility of its independent auditor, Deloitte & Touche, was not … largely because its statements, in an audit released last year, warned investors of the potential problem, according to WebCPA, citing a BusinessWeek story on the topic.

It’s my view that every accounting firm PR program should have a strong component dedicated to highlighting ethical standards. After all, do any of us truly believe — to the extent that we did seven years ago — that accountants provide a rock-solid guarantee of the honesty and accuracy of the financial statements that they audit? Enron was a watershed in this respect, and public relations must take this into account.