Social washing

    ESG & Governance

    Overstating a company's or fund's social credentials, such as labour standards, diversity or community benefits.

    Social washing is the social version of greenwashing. Examples include a large CSR budget presented as proof of good social practice while contract workers face unsafe conditions, or a "social" bond whose projects bring little benefit to the stated groups. Social data is often harder to measure than environmental data, which makes social washing harder to spot. Check worker safety records, grievance data and supply chain disclosures, not just headline programmes.

    Related terms