What is corporate goodwashing and how can your business avoid it with Friendship Tree?

Corporate giving is under a microscope.

Employees, customers and partners want more than good intentions and polished statements. They want proof. Where did the money go? Who did it help? What changed as a result?

As expectations rise, businesses are being asked to give back in ways that are transparent, measurable and genuine. Without the right systems in place, even well-intentioned efforts can slide into what’s become known as “corporate goodwashing”. 

To unpack what this really means and how businesses can avoid it, we sat down with Friendship Tree CFO, Mark Payne.

Mark brings decades of experience protecting the assets and sustainability of small to medium businesses. His lens is practical, grounded and clear. Giving back still involves money changing hands. And when that happens, governance, traceability and accountability matter.

Introducing Mark Payne

Mark began working with Adam White, the founder of Friendship Tree, in 2023. Over several months, he played a pivotal role in transforming Adam’s evolving vision into a scalable plan and operating model and was instrumental in securing the capital required to bring that vision to life.

What is corporate goodwashing?

Corporate goodwashing sits in the same family as ‘greenwashing’ and ‘purpose washing’.

Mark described it simply.

“Corporate goodwashing happens when companies promote social impact initiatives that appear meaningful but lack depth or transparency or measurable outcomes. They appear to be doing the right thing, but once you start delving into it, they’re not really.”

Some businesses do this deliberately. Many don’t. Most believe they are doing the right thing.

The problem is not intent. It’s execution.

Why do businesses fall into goodwashing (even by accident)?

The pressure on businesses to demonstrate social responsibility has never been higher.

“There’s so much pressure nowadays on businesses to demonstrate they are socially responsible,” Mark said. “There’s corporate social responsibility, but there’s not really much of a framework for authentic giving.”

When time is tight and expectations are high, giving can become a box-ticking exercise. The focus shifts to optics instead of outcomes.

“They’re looking for the positive PR side of things and that can take over,” Mark added.

Without clear systems for verification, tracking and reporting, businesses struggle to back up the claims they make.

“When people ask the questions, they haven’t got the proof or the verification to back up what they’re saying.”

Why is goodwashing becoming more common?

Goodwashing feels more visible today for two reasons.

First, expectations have shifted. Employees and customers now expect businesses to have a position on impact and to act on it. Second, scrutiny has increased.

“Social media really amplifies it,” Mark said. “People can get on social media and say they’re doing the right thing. Then people start scratching the surface.”

Regulators have pushed back hard on misleading sustainability claims in recent years, especially where claims are vague or key information is missing. Businesses are being held to a higher standard, whether they are ready or not.

Red flags your impact may be performative

In his work with Friendship Tree, Mark looks for a few clear signals when assessing whether a company’s giving is genuine.

Big claims without data

If you can’t show where funds went and what happened next, credibility drops fast.

No verification of partners

Without due diligence, businesses are exposed to reputational risk.

Lack of transparency

If simple questions can’t be answered, trust erodes.

Low internal awareness

If employees don’t understand or engage with the initiative, it can feel like optics rather than culture.

The workplace giving landscape

To understand how businesses can move forward with workplace giving, it’s important to understand the current ecosystem surrounding it.

Australians are generous, with over 80% of people having given financially to charities, according to Workplace Giving Australia’s Giving Research and Insights for 2024.

In terms of charitable giving at work, around 60% of workplaces offer some form of workplace giving program. Yet only about 1.5% of employees participate. Even among companies with established programs, average uptake sits below 5%.

The intention is there. The engagement isn’t.

“51% of respondents stated that the most significant barrier to participating in workplace giving was ‘lack of communication and understanding around the program’,” according to the 2024 research.

When workplace giving is built from the top down, it can feel like a brand exercise rather than a shared behaviour. Participation stays low. And when engagement is low, credibility suffers.

But when it’s done well, the effect is the opposite.

“There’s no doubt about it,” Mark said. “The younger generation definitely wants to give back. People joining the workforce want to work for companies that are trying to make a difference,”

Employees increasingly want to work for businesses that reflect their values. When giving programs are transparent, easy to use and genuinely inclusive, they can support retention, strengthen culture and build loyalty over time.

How to give responsibly and avoid corporate goodwashing

Giving back doesn’t need to be complicated, but it does need to be considered.

Corporate goodwashing often isn’t driven by bad intent. It happens when businesses lack the right structure, partners or visibility to support their giving properly.

Friendship Tree was built to remove that ambiguity.

From Mark’s perspective, responsible giving comes down to three foundations: verification, transparency and proof.

Start with partners you can stand behind

“Businesses can only be as credible as the partners they support,” Mark said. Friendship Tree applies a layered due diligence process to every charity on the platform. This includes AI-led data verification combined with a final human review to ensure accuracy and legitimacy.

“We’re very meticulous with how we vet charities. We use an AI verification tool to pull in data, then a human verification process to make sure nothing’s been missed.”

All of Friendship Tree’s charity partners are ACNC-approved and meet formal reporting requirements.  That rigour protects businesses from reputational risk and ensures funds are going where they’re intended.

Make transparency easy

Good intentions fall apart when businesses can’t explain what they’re doing. Friendship Tree makes it simple to see where money goes and what it achieves.

“You can look on our app and see what the charities are doing,” Mark explained. “There are metrics there. These charities are doing what they say they’re doing.”

Clear charity profiles, impact summaries and developing dashboards help businesses, employees and finance teams understand outcomes without needing specialist knowledge. Transparency becomes something you can point to with confidence.

Close the loop with real impact updates

One of the biggest contributors to goodwashing is what happens after the donation.

“We publish and we get the charities to update the information they provide us, saying what impact they’re making,” Mark said. “That’s so important.”

Impact updates turn giving into an ongoing story rather than a one-off transaction. They support responsible communication, reinforce trust and give businesses confidence that what they’re saying externally matches what’s happening on the ground.

Build a giving program that lasts

Mark’s advice to organisations starting their giving journey is simple.

“Come and check out Friendship Tree. All of the listed charities have been vetted. You’re not going to be accused of goodwashing. Your money is going in the right place.”

According to Mark, it's important to follow these rules of thumb:   

• Choose verified partners 
• Track where funds go 
• Share real outcomes 
• Involve employees in the process 
• Commit beyond a moment and stay consistent 

Workplace giving with Friendship Tree

Corporate goodwashing doesn’t start with bad intent. It starts when businesses give without the visibility and proof to back it up.

Friendship Tree exists to close that gap. With verified charities, clear tracking and ongoing impact updates, it gives businesses a way to support causes with confidence and integrity.

If your organisation wants to give back in a way that employees trust and stakeholders can see, Friendship Tree makes it simple to do it right.

Later this year, as a natural part of our evolution, you will be able to start your workplace giving journey at Friendship Tree – contact us for more information.