Companies that consider themselves ‘deep green’ and socially responsible should not assume consumers see them in the same light, says a new study.
A paper by Michela Zint of the University of Michigan and Rob Frederick of Ford Motor Company says environmentally aware businesses sometimes believe that ‘actions speak louder than words’ – and that there is therefore no need to market themselves as green companies.
But in a case study of Patagonia, an environmentally aware US outdoor sports clothing retailer, they conclude that consumers are often ignorant of a company’s green policies – and that socially responsible businesses should communicate their credentials in this area to gain competitive advantage.
The paper, published in the first edition of a new quarterly publication, The Journal of Corporate Citizenship, says Patagonia discovered through market research that customers did not see it as being any more concerned for the environment than its competitors.
Further research by the authors showed the company was not getting full value from its green stance, and a marketing campaign has now been devised.
Zint and Frederick conclude that ‘deep green companies such as Patagonia should not assume consumers are knowledgeable about environmental issues’ and should therefore communicate their activities more effectively.
Patagonia, which has a yearly turnover of $180million (£126m), has implemented a number of green measures, including a ‘tithing programme’ that donates ten per cent of pre-tax profits to environmental organizations.