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Management article
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Reference no. SMR54410
Published by: MIT Sloan School of Management
Published in: "MIT Sloan Management Review", 2013
Length: 5 pages

Abstract

Eco-labels are widely used as a policy tool to provide consumers with information on a product’s sustainability characteristics. While some labels achieve widespread recognition, credibility and demand, others are associated with greenwashing, confusion and compromised quality. The number of new eco-label programs aimed at environmentally conscious consumers has grown rapidly but with little quality control. The authors have developed a three-part framework for managers to avoid betting on the wrong label.

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Abstract

Eco-labels are widely used as a policy tool to provide consumers with information on a product’s sustainability characteristics. While some labels achieve widespread recognition, credibility and demand, others are associated with greenwashing, confusion and compromised quality. The number of new eco-label programs aimed at environmentally conscious consumers has grown rapidly but with little quality control. The authors have developed a three-part framework for managers to avoid betting on the wrong label.

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