Case studies in the rise of ESG disputes: Greenwashing and social washing in focus

Case studies in the rise of ESG disputes: Greenwashing and social washing in focus

Credits: Levi's This week, it was announced that the Clean Clothes Campaign (CCC), together with four consumers, is filing a lawsuit against clothing brand Levi Strauss (Levi's). The case revolves around alleged misleading sustainability claims and labour rights violations at a factory in Turkey where Levi's manufactures. More than 400 workers lost their jobs there after striking for better working conditions and joining a trade union. Hundreds of workers are still awaiting compensation. Both online and in its brick and mortar stores, Levi's made promises to consumers about responsible production and respect for workers' rights. According to the CCC, this is misleading because these promises lead consumers to believe they are buying from a brand that produces responsibly with respect for labour conditions. This is also known as 'social washing'. Social washing involves making misleading statements about human rights, supply chain working conditions and diversity policies. Companies engaging in social washing present themselves as socially responsible, while much is often wrong behind the scenes. For example, they advertise with campaigns about fair wages and good working conditions. Many brands claim their clothing is produced responsibly, while their suppliers may in reality have unsafe working conditions, poor employment terms or even forced labour. Many clothing brands use commercial audits to substantiate their claims about working conditions. An audit verifies whether a supplier or manufacturer adheres to labour standards. The problem with these audits is that they are often not independent and are paid for by the client. Furthermore, the audits are…

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