Easy2 marksMultiple Choice

ACCA · Question 09 · Syllabus B: Organisational structure, culture, governance and sustainability

Section A

TrendFast, a global fast-fashion retailer, recently launched a 'Conscious Collection' made from 10% recycled materials. However, they simultaneously increased production of their highly polluting core lines by 30%. Environmental groups have accused TrendFast of 'greenwashing'. What does greenwashing refer to in the context of Corporate Social Responsibility (CSR)?

Answer options:

A.

The process of transitioning all supply chains to zero-carbon emissions.

B.

Creating a misleading impression of environmental responsibility while core practices remain unsustainable.

C.

Legally laundering money through environmental charities.

D.

A mandatory government audit of a company's environmental impact.

How to approach this question

Analyze the scenario: the company does a small good thing (10% recycled) to distract from a massive bad thing (30% increase in pollution). This deceptive marketing is called greenwashing.

Full Answer

B.Creating a misleading impression of environmental responsibility while core practices remain unsustainable.✓ Correct
Greenwashing is a term used to describe the practice of making unsubstantiated or misleading claims about the environmental benefits of a product, service, technology, or company practice. TrendFast is using a small 'conscious' line to mask its overall negative environmental impact.

Common mistakes

Confusing greenwashing with actual green initiatives or environmental audits.

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