Easy2 marksMultiple Choice

ACCA · Question 09 · Organisational structure, culture, governance and sustainability

A fast-fashion retailer launches a 'Conscious Collection' made from 10% recycled materials, heavily marketing it as a revolution in sustainability. However, the company continues to dump thousands of tons of toxic dye into rivers from its main production lines. In the context of Corporate Social Responsibility (CSR), what term best describes the retailer's marketing campaign?

Answer options:

A.

Proactive CSR

B.

Greenwashing

C.

Corporate philanthropy

D.

Sustainability reporting

How to approach this question

Identify the discrepancy between the company's marketing (eco-friendly) and its actual operations (highly polluting). This deceptive practice has a specific term.

Full Answer

B.Greenwashing✓ Correct
Greenwashing occurs when an organization spends more time and money claiming to be 'green' through advertising and marketing than actually implementing business practices that minimize environmental impact.

Common mistakes

Assuming any environmental initiative is 'Proactive CSR', failing to recognize the deceptive nature of the scenario.

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