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Why Companies Need to Greenwash - YouTube
Channel: Our Changing Climate
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In 1985, one company decided to profit off of the
environmental fervor that had pervaded the 70s.
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They ran a series of ads like this one. The
ads were part of the “People Do” campaign,
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which highlighted how workers were changing
landscapes to aid local wildlife. The campaign
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was such a success that it ran well into the
1990s, and the advertisements even won an Effie
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advertising award for green eco-marketing in 1991.
But these commercials had a sinister purpose. One
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that masked the environmental pollution
and destruction of the company that made
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them. Today, we’re going to unpack so-called
corporate responsibility and greenwashing:
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what it means, how commercials and tactics
like the “People Do” campaign work,
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and why corporations like the one that made those
commercials don’t care about us or the planet.
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This video is sponsored by CuriosityStream,
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which now comes with Nebula for free when you
sign up using the link in the description.
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What Companies Claim
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The late 1980s weren’t a good time for Chevron’s
environmental track record. In 1985, one of the
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company’s refineries had just been exposed for
contaminating the local groundwater with millions
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of barrels of oil leaks. Then three years later,
the company paid $550,000 to settle a lawsuit
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brought in connection with toxic emissions at its
plant in Richmond, Virginia. Then again in 1991,
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it pleaded guilty to violating both the clean
water and clean air acts, paying millions of
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dollars in damages. So, the fossil fuel giant
decided to do something about their tattered
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public image. Starting in 1985, Chevron shelled
out around 5 to 10 million dollars a year to
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create the “People Do” campaign. That’s right,
the company behind those nature filled commercials
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was the oil corporation Chevron. Throughout the
campaign, Chevron payed an estimated $200,000
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to make each 30-second ad that marketed
initiatives like their butterfly preserve.
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A preserve that cost just $5,000 a year to
maintain. A mere glance at the price tag reveals
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where the oil corporation’s motives lie: their
public image and their profits. But this type of
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ad campaign is common for corporations, especially
large multinationals. Fast forward to today,
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and greenwashing, or using environmental rhetoric
to boost sales or brand image while simultaneously
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polluting or destroying the environment, pervades
marketing campaigns. From oil giants like
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ExxonMobil, to Home Depot, to Nestle, right
on down to Instagram ads on your feed.
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Each of these companies have a vested
stake in misleading you into believing
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that the product and ultimately the company
is aiding in social and environmental change,
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but when it comes to greenwashing there is
a lot more at stake than getting misled.
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Why Companies Greenwash
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From behind his desk in the economics department
of the University of Chicago, Milton Friedman, the
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father of neoliberal economics, penned an op-ed
for the New York Times. The year was 1970, and
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government regulation was trendy in the halls of
congress, passing numerous laws seeking to protect
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environmental and human well-being. Friedman saw
it differently. In his view, these regulations
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were not only bogging down corporations, but they
were also forcing businesses to do something that
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they were not meant to do. In his view, the
only social responsibility of corporations
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is to turn a profit for their shareholders.
Regulations, according to Friedman, just
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slowed down the machine of progress. This is the
core of neoliberalism, a theory of deregulation
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and free-market business that is foundational to
American and global enterprise today: Profit above
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all else. Which is why greenwashing
and claims of corporate responsibility
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must be seen less as a harmless misdirection, and
more as tools essential to the capitalist quest
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of expanding corporate profits. Under capitalism,
a corporation’s primary goal is to generate profit
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for shareholders and the capitalist class. To do
otherwise, to carve out space for the environment
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or god forbid the working class, would mean
fewer investors, less profit, and ultimately
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bankruptcy. If, however, a company like Nestle,
H&M, or Chevron can be seen as working towards
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the common good through PR campaigns and savvy
marketing without having to fundamentally change
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their business operations, then they’ve
protected or even expanded their profits.
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But there are also a couple of other reasons
why so-called Corporate Social Responsibility
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and its offshoot, greenwashing, are so insidious.
For one, it rewrites the narrative of what
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change and climate action means. BP’s carbon
footprint campaign is a perfect example of this.
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By redirecting public attention from their
oil spills and emissions back towards our own
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personal carbon footprint, the oil giant made
climate action more about individual endeavors
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than corporate malfeasance. We see this again and
again, such as with H&M’s campaigns that co-op
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phrases like “eco-warrior” and “climate crusader”
to get you to buy more clothes. Essentially, these
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marketing schemes make us think that we can buy
our way out of social problems, when, in reality,
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the very companies we are buying from are causing
those social issues. The second way greenwashing
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is so threatening is that it lulls us into a false
sense of security. If we believe that corporations
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are changing for the good, then we can sit back
and let them do their work. This is exactly what
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Chevron’s “People Do” campaign was all about.
Indeed, Chao Gunter, director of the Public
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Media Center in San Francisco, notes that through
their misleading ads, “Chevron implies that maybe
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we don’t need a regulatory framework because the
oil companies are taking care of it.” In short, if
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corporations can trick us into trusting them to do
good, they can do whatever they want. Greenwashing
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allows for businesses to continue their
destructive practices by tossing scraps to us and
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claiming they’re giving us a whole meal. Because
any real change, any effective climate action,
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means changing the paradigm. Real solutions
to the climate crisis, like degrowth, building
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with local materials, agroecology farming, and
ecosocialism, all spell disaster for corporations
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because it means shifting priorities away
from profits and towards people and planet.
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Regardless of what these companies say,
their actions speak louder than their words.
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Why Corporations Will Never Be Our Savior
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Since Chevron started running their
greenwashed “People Do” campaign
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they’ve racked up countless instances of
environmental destruction and exploitation.
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In 1988, while their ads were blanketing TVs and
magazines, Chevron’s El Segundo refinery leaked
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an estimated 252 million gallons of oil into the
surrounding groundwater. And to this day, Chevron
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refuses to clean up an oil spill so egregious
it came to be known as the “Amazon Chernobyl.”
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From 1964 to 1992, Texaco, which is now owned by
Chevron, dumped 72 billion liters of toxic water
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polluting a 1,700 mile area in the Ecuadorian
Amazon rainforest and tainting the water supply
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for the indigenous communities living near the
oil wells. But Chevron isn’t the only corporation
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claiming they’re doing good while they quietly
destroy our surroundings. Home Depot, for example,
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has had to pay a $28 million settlement because
it illegally dumped toxic waste in California
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despite running marketing campaigns aimed at
consumers to recycle their homemaking materials.
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And Nestle, with its claims of sustainable water
and packaging, is anything but sustainable. First
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of all, wrapping water in plastic is causing
a single-use plastic waste crisis, but to add
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insult to injury, Nestle’s subsidiaries like,
Arrowhead Water, which sources its water partly
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from California springs, an area notoriously
racked with a mega-drought, have been repeatedly
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accused of sucking aquifers dry wherever they
operate. These exploitative corporate practices
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reveal that to make the most profit they can,
corporations try to externalize as many costs
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as they can. And if they can say that they aren’t
externalizing costs while they actually are, then
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they've won… but at the cost of the planet and
the people slaving away under brutal conditions.
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How We Change:
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Greenwashing and corporate social responsibility
are tactics. Plain and simple. They are used as
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ways to distract from the metaphorical boot on
our throats and on the throat of our planet. These
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misleading marketing campaigns are just another
example of the resilience of capitalism. For
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as long as capitalism continues to reign, so too
will the laborious task of deciphering misleading
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messaging. Capitalism is the problem, not our
buying habits. Think about how hard it is to find
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“sustainable” goods, and even after all that
hard work it’s still difficult to figure out
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whether the company is telling the truth. Here’s
the thing. There is no ethical consumption under
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capitalism. But the reason why there is no ethical
consumption under capitalism is that there are
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no ethical corporations under capitalism. Even
B-corporations like Patagonia are still driven
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by the profit motive and the bottom line.
All this means that to end greenwashing,
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to create economies where materials and goods
are crafted to fulfill uses rather than to fill
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wallets and make profits, we must end capitalism.
But building the power to do so, especially in
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imperial core countries like the United States,
is a multi-decade process, and the climate
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crisis demands action now. Which is why we need
harm-reduction strategies that use available tools
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right now. These look like forcing corporate
transparency through lawsuits, third-party
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auditing, and using regulating bodies to actually
enforce regulations as a way to make corporations
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live up to their promises. But importantly, these
harm-reduction strategies must mesh with the
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longer term work of building a post-capitalist
world. One that envisions an economy built on
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truths, on real environmental stewardship,
and on human and community well-being.
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Of all the big multinationals professing to be
climate saviors, Nestle is certainly one of the
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worst. Unfortunately I didn’t have the time to
fully dive into Nestle’s greenwashing campaigns
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in this video. So instead, I made a little bonus
part about Nestle’s environmental practices and
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