Why your employees are the first line of defence against greenwashing

Later this year, the Australian Government’s Senate inquiry into the effects of greenwashing is due to report its findings. And while the spotlight is understandably on consumers, it’s important business leaders also consider another critical stakeholder – their employees.

When someone uncovers, reads about, or is informed about their employer’s greenwashing, they’re likely to experience feelings of disappointment and embarrassment, potentially also a loss of trust in leadership. Those who unwittingly find themselves playing a role in greenwashing may feel disillusioned, frustrated, and conflicted. Those feelings can have a real impact on businesses. A 2022 study from researchers at Canada’s Western University found greenwashing related to perceptions of corporate hypocrisy, which in turn resulted in higher turnover intentions. 

Despite such risks, it’s important to recognise employees are also part of the solution.