Inside the shady world of corporate virtue signalling

Picture this: a boardroom full of executives patting themselves on the back for launching an 'eco-conscious' product line, all while their factories continue to belch out more carbon emissions than a fleet of SUVs (carrying people obviously) at a Formula One race.

Critics call this behaviour 'corporate virtue signalling'. It is the modern capitalist's answer to moral perfection.

Corporate virtue signalling, for the uninitiated, is a form of public relations wizardry where businesses loudly declare their commitment to social justice, environmental sustainability, or whatever the trending moral cause of the day is— without making any meaningful changes to their actual practices.

Let's be clear: it's not the idea of supporting good causes that's problematic— it's the utter lack of depth behind these corporate proclamations. The real issue is that, for many companies, virtue signalling is simply about optics.

Capitalism is a wondrous system where profits reign supreme, but big business still wants you to know that they care— about whatever you care about. In the glittering world of corporate virtue signalling, companies act like moral saviours while their actual operations tell a very different story.

These days, it seems that every company, from fashion brands to Big Tech, is strutting around in its corporate boardroom, high-fiving its executives about how 'sustainable' and 'ethical' they are. Climate change? Solved by a recycled tote bag. Worker exploitation? Handled by a quick post on Instagram about diversity. It's a beautiful world where marketing can save the planet!

It's a dazzling performance that leaves us feeling warm and fuzzy, but only if you don't peek too closely at the data. Ready to see how deep this rabbit hole goes? Let's take a dive into the world of half-baked corporate responsibility, from the greenwashed fashion runways to Big Tech's two-faced environmental pledges. Spoiler alert: it's more than just an Instagram post, it's a full-scale marketing scam— disguised as saving the world.

Virtue signalling by global giants

A 2020 study by the 'Changing Markets Foundation' found that 60% of 'sustainability' claims made by fashion brands were false, misleading, or at best, exaggerated. Sixty percent! That means more than half of the claims are basically "lip service"—PR strategies disguised as corporate altruism. 

Take the fashion industry, a sector responsible for 8-10% of global carbon emissions, according to the United Nations. Yet, you'll see brands like H&M boast about their 'Conscious Collection,' featuring garments made from organic cotton or recycled polyester. These collections make up a tiny fraction of the 3 billion garments the company cranks out each year. Their 'conscious' initiative is like throwing a reusable straw into an overflowing landfill and expecting applause.

Let's come to Big Tech. It is the golden child of modern capitalism, with companies that constantly preach about how much they care about the planet and humanity.

Take Microsoft, for example. The tech behemoth proudly declared in 2020 that it would become 'carbon negative' by 2030— a noble goal indeed. But there's one tiny, inconvenient fact: Microsoft continues to partner with oil and gas companies, providing them with cloud services and AI tools to optimise fossil fuel extraction. It's kind of like trying to diet while secretly binge-eating cheesecake at midnight.

Apple is another shining example. The tech giant loves to flaunt its 'green' credentials. It proudly announced that all its facilities run on 100% renewable energy and that it is using more recycled materials in its products. But, before we throw the parade, let's remember that Apple churns out new iPhones every year, effectively encouraging the type of planned obsolescence that drives excessive consumption.

Also, let's not forget the reports of labour abuses in the company's supply chain, especially in China. But don't worry— there's a diversity workshop happening at the corporate office!

Corporate virtue signalling is deeply tied to the environmental movement as well. In recent years, 'greenwashing' has become a popular term to describe companies' deceptive marketing tactics that exaggerate or completely fabricate their eco-friendly initiatives. It's a bit like wrapping a Big Mac in lettuce and calling it a salad. Sure, there's some greenery, but you're still eating junk.

Take Coca-Cola, for instance. The soft drink giant loves to brag about its sustainability efforts. It's pledged to collect and recycle every bottle it produces by 2030. But here's the twist: Coca-Cola is also the world's largest plastic polluter. According to Break Free From Plastic's 2021 Global Brand Audit, Coca-Cola was named the top plastic polluter for the fourth year in a row. So, while it's pledging to clean up the planet, it's simultaneously flooding it with more plastic waste than any other company.

Virtue signalling in Bangladesh

Bangladesh is a key player in the global garment industry, and we've seen our share of corporate virtue signalling. Western brands, eager to prove their ethical credentials after disasters like the 2013 Rana Plaza collapse, have promised everything from improved working conditions to fair wages. They've set up glossy campaigns showcasing how they've partnered with 'ethical' Bangladeshi factories.

But behind the glamour of these campaigns, the reality is grim. According to a 2022 report from the Clean Clothes Campaign, Bangladeshi garment workers still earn below a living wage— less than $5 a day. That's the same amount 'Westerners' would spend on a cup of overpriced, fair-trade, organic, shade-grown latte.

For all their virtue signalling about worker rights and safety, Western brands continue to push for lower prices from factory owners, creating a race to the bottom for wages and working conditions.

Is all virtue signalling bad?

Interestingly, not all virtue signalling is inherently harmful. In some cases, the pressure to appear socially responsible can lead companies to make real changes. Patagonia, for example, is famous for its sustainability initiatives. It even encourages customers to repair old garments rather than buy new ones— a bold move in the age of fast fashion.

The path forward

The good thing is that consumers are getting savvier. We are no longer so easily fooled by glossy sustainability reports and vague promises of corporate morality. In Bangladesh, as in the rest of the world, the future of corporate responsibility depends on stronger regulations, more transparency, and, most importantly, consumer demand for real change. 

It's time to stop applauding the half-hearted efforts of companies that are more interested in marketing than morality. As a concerned citizen, the next time you see a business touting its "sustainable" or "ethical" credentials, ask the tough questions. Where's the data? What are they doing about their core business practices? Are they addressing systemic issues, or just slapping a green sticker on a much larger problem?

Governments and international bodies also must step up to hold corporations accountable for their CSR and sustainability claims. In Bangladesh, we've taken a step in the right direction with the introduction of the CSR Policy Framework in 2021, which requires companies to report their social and environmental impacts. However, enforcement remains weak. Without strict regulations, corporate virtue signalling will continue to be nothing more than a sophisticated PR exercise.

Sketch:TBS

Galib Nakib Rahman is an engineer turned finance enthusiast. He can be reached at galibnakibrahman@gmail.com.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.