Socialwashing and corporate responsibility: the innovation of Instant Analytics can promote transparent marketing

Edited by Giuliano Resce - Principal investigator, Federica Rucci - Student in Politcal Science

Socialwashing, meaning the instrumental use of social causes for commercial purposes, poses risks of misinformation and opacity in the markets. To counter these practices, Instant Analytics offers advanced solutions in web scraping, text mining, and machine learning, capable of promptly detecting misleading content and promoting greater transparency. This innovation supports an ethical approach to marketing, protecting consumers and helping to enhance corporate responsibility. Continuous monitoring and the adoption of shared standards can foster the building of trust-based relationships between companies and stakeholders.

The marketing sector has undergone a profound transformation with the advent of technology and social media. Companies have begun to leverage the popularity and influence of public figures to promote their products, giving rise to new advertising strategies. Among these, one of the most widespread associates the promotion of consumer goods with social causes or charitable initiatives. At first glance, it seems like an approach beneficial for all parties involved: on one side, businesses and public figures expand their visibility, while on the other, the community benefits from potential donations and concrete support. However, it is worth questioning what can happen when such initiatives conceal purely economic interests, without a real commitment to the social cause. A recent example, symptomatic of misinformation and opacity in commercial practices, is the so-called 'Pandoro Gate.' In this case, influencer Chiara Ferragni and the confectionery company Balocco were accused of deceiving consumers about a product sold for charitable purposes.

The Pandoro Gate Case

To understand the origins of the case, it's helpful to go back to November 2023, when the two partners launched a charitable initiative tied to the release of a limited edition called "Pandoro Pink Christmas." According to official press releases, the proceeds from the sales were to be donated to the "Regina Margherita" Hospital in Turin, to support the treatment of children suffering from Osteosarcoma and Ewing’s Sarcoma. However, it later emerged that the donation amount had been determined beforehand, with a preset sum. As a result, despite being sold at a higher price than traditional pandoro, the purchase of this special edition did not provide an additional contribution to the charitable cause. The case was examined by the Italian Antitrust Authority, which on December 15, 2023, sanctioned the promoters of the initiative for unfair commercial practices. In particular, the companies were held responsible for misleading consumers, violating current regulations on transparency in promotional activities. The repercussions for the involved parties were significant. Balocco, a historic brand in the Italian confectionery sector, experienced a drop in sales and a noticeable loss of revenue from the initiative. Chiara Ferragni also suffered considerable damage to her image, which negatively impacted the reputation of her brand, “Chiara Ferragni Collection,” closely tied to the world of social media. Indeed, Chiara Ferragni's popularity has been largely built through digital platforms, through which she has reached millions of people worldwide. Her followers, however, are not merely admirers; they are actual consumers who purchase the products she endorses or launches in collaboration with other brands, as was the case with the partnership with Balocco. Once it became clear that transparency in the commercial initiative had not been fully upheld, a media scandal erupted, followed by a drop in the number of followers and revenues.

Socialwashing and Protection Mechanisms

This event can be considered an example of "socialwashing," a marketing strategy aimed at improving a company's public image through seemingly altruistic and socially engaged initiatives, but without any real ethical content. This phenomenon, which is becoming increasingly relevant in today's markets, is part of a broader trend known as "washing"—a term coined in 1986 by environmentalist Jay Westerveld, which literally means "washing" and has progressively been applied in various fields (e.g., "greenwashing" in environmental issues, "pinkwashing" in women's issues, and "rainbow-washing" in LGBT+ issues). All of these strategies share a common goal: exploiting socially relevant issues to generate profits, leading consumers to make purchases based on unmet ethical expectations. "Washing" practices and other forms of deceptive marketing are subject to oversight by various authorities, regulated by antitrust laws, with the aim of ensuring fair competition in the markets and protecting consumers from unfair conduct. However, the mere existence of laws and oversight bodies is not enough to stop the spread of these phenomena: it is necessary to make protection mechanisms more effective and efficient.

Digital Washing, Our Monitoring as a New Perspective

In this context, technology offers new perspectives. Web scraping, text mining, and machine learning algorithms allow real-time monitoring of content published by companies and influencers, identifying potential signs of deception or contradictions with public statements. Moreover, non-financial disclosures provide data on the actual social impact of economic activities conducted in the region. One of the most innovative developments in this direction comes from solutions developed by Instant Analytics, which is working on automating the monitoring of so-called "digital washing." The main goal is to promptly identify any misleading campaigns and help reduce information asymmetries in the markets. Through constant analysis of online communication and the use of specific indicators related to social responsibility, these technologies can prove to be a crucial tool for detecting opaque practices and curbing cases of socialwashing.

Conclusions

Ultimately, the widespread use of systems like those developed by Instant Analytics, combined with greater awareness among companies, influencers, and consumers about transparency issues, represents a crucial step in preventing phenomena like "Pandoro Gate" and ensuring a fairer and more reliable market.