Published by:
MIT Sloan School of Management
Length: 5 pages
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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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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.