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Why companies might under‐communicate their efforts for sustainable development and what can be done?
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Paper
Why companies might under‐communicate their efforts for sustainable development and what can be done?
2022
Overview
In contrast with the increasing green demands from various stakeholders, corporations might prefer green blushing, that is, deliberately avoiding communicating their efforts for sustainable development. Surprisingly, these companies make substantial green achievements, but decide not to communicate their greenness. Using a broad literature review on green blushing and a conceptual reasoning backed up by anecdotal evidence, we expose the likely consequences of under-communicating green achievements and develop several rationales that explain this apparent puzzle. We also propose that silent or timid corporations can make the best of two worlds, by taking advantage from communicating their greenness while avoiding its main pitfalls. We suggest practical ways to do it.
Publisher
Federal Reserve Bank of St. Louis
Subject
