In this course, learners have been introduced to various concepts concerning consumer behavior. These concepts have been presented with the goal of equipping learners with the insights and skills that they need to become more sensible and responsible consumers. While some of the concepts that the course has addressed are familiar, others have been new. Greenwashing is among the new issues on which the course has shed light. This concept has been selected for further discussion so as to highlight the trends in consumer behavior and how companies are engaging in questionable practices.At its core, greenwashing refers to a practice where companies make false and misleading claims and statements regarding their commitment to eco-friendliness. Netto et al. (2020) are among the scholars who have explored the concept of greenwashing. In addition to defining greenwashing as a practice where companies purport to be champions of environmental conservation and sustainability, Netto et al. (2020) also add that greenwashing is also a question of trust. By lying to and misleading their customers and the wider public, firms that engage in greenwashing violate the trust of the customers. Furthermore, these scholars note that greenwashing amounts to a betrayal of corporate social responsibility and raises questions about whether firms are truly dedicated to reversing the damage that the environment has suffered.
It should be understood that greenwashing is not an absolute concept; it is a continuum. Acaroglu (2019) determined that the level of greenwashing varies from one company to the other. At one of end of the greenwashing continuum are companies that are genuinely concerned about the environment and have taken steps to promote sustainability. On the other end are firms which are outright and unashamed in the lies and misleading information that they feed the public. Most companies are found between these two extremes. For example, while a firm may actually develop programs for environmental conservation, it may inflate the impact that these programs are having. It is rather difficult to establish the position that a company occupies on the continuum. This difficulty lies in the fact that consumers and the public struggle to verify the claims that companies make about their conservation efforts.
Delegate your assignment to our experts and they will do the rest.
While it has featured more prominently in conversations in the recent past, greenwashing is not a new concept. As Watson (2016) observed, it has a long and complex history. In his discussion on the evolution of greenwashing, Watson (2016) traces the origins of this concept to the 1980s. During this time, companies were coming under intense pressure to do more to safeguard the environment. According to Watson (2016) instead of investing in interventions that actually benefit the environment, firms resorted to lying and misleading the public. Watson (2016) singles out Chevron as among the perpetrators of greenwashing. He describes how Chevron released a marketing campaign in which its employees were shown protecting wildlife. This campaign stood in sharp contrast to the company’s environmentally-damaging production and business practices. Sadly, greenwashing did not stay in the 1980s. It has grown to become a common practice that companies are leveraging in their quest to depict themselves as eco-friendly and responsive to the concerns of the public.
Given that greenwashing is unethical, one is forced to wonder why it has gained traction. Netto et al. (2020) provide some answers. These scholars suggest that many companies integrate greenwashing into their public relations programs. Basically, for these companies, greenwashing is a tool for influencing customer attitudes and public perceptions. Through greenwashing, they seek to be seen as socially responsible and sustainable. Furthermore, Netto et al. (2020) established that greenwashing is the result of desperate efforts of companies that are responding to changes in customer dynamics. For example, as more customers express preference for sustainably-made products, companies have incorporated greenwashing into their marketing communications.
Intriguing Facts and Insights
During the search for information about greenwashing, a number of interesting facts and insights emerged. Among these facts is that there are clear standards and guidelines that companies are expected to follow when labeling their products as “eco-friendly.” For example, Coghlan (2011) penned an article in which he asks his readers whether they can trust the messages that companies convey. One of the more interesting issues that he explores is that such entities as the International Organization for Standards (ISO) have been established for the purpose of challenging companies to pursue eco-friendly approaches. According to Coghlan (2011), despite the work of the ISO, greenwashing remains prevalent. The key take-away from Coghlan’s article is that voluntary systems of compliance are not effective in discouraging greenwashing. Few companies will refrain from greenwashing when there are no clear and substantial motivations. It is evident that government regulation may be needed to compel companies to verify the accuracy and trustworthiness of the information that they share with the public. For example, government agencies could impose fines and other sanctions on firms which are found to have issued misleading details about their eco-friendly initiatives. This measure will certainly be far more effective and could result in a significant drop in the scale and prevalence of greenwashing. It may be years before government regulation governing greenwashing is enacted. In the meantime, consumers and the public need to be vigilant and call out any and all companies that participate in greenwashing.
The second interesting fact that the search for information generated is that greenwashing can actually and has indeed hurt companies. Rahman et al. (2015) addressed this issue in their article. In this article, Rahman et al. (2015) give special attention to the hospitality industry and how consumers are responding to greenwashing practices. After exploring responses from hundreds of responses, these researchers observed that the typical response by consumers to greenwashing is skepticism. Essentially, according to Rahman et al. (2015) consumers are becoming savvier and more knowledgeable. They have found that the safest approach is to treat all information that they receive from companies regarding eco-friendly programs should be treated with skepticism and little faith. The researchers make it clear that this approach is benefiting consumers who are now better protected against false and misleading information. On the other hand, the approach is hurting companies. In fact, as they conclude their discussion, Rahman et al. (2015) warn firms that they risk losing the trust and faith of their customers when they engage in greenwashing. While the research that these scholars conducted is intriguing, it raises a number of vital questions. One of these questions is why companies continue to participate in greenwashing despite the serious risks that this practice carries. An individual would expect a firm led by reasonable and responsible managers to stay clear of greenwashing so as to regain consumer trust. It is clear that further research is needed to establish why greenwashing remains rampant despite the risks that it carries.
That there are clear and specific signs that consumers can look for to identify companies that are engaging in greenwashing is another fact that the literature search yielded. Scheer and Moss (2013) explored some of these signs in an article that they penned for the Scientific American. One of these signs is when companies boast about initiatives that the law already mandates. For example, suppose that a company issues a message in which it asserts that it treats its waste water before release into rivers. The law already requires companies to refrain from polluting water bodies. This company is therefore engaging in greenwashing. Another sign that Scheer and Moss (2013) discuss is the tendency by some companies to spend more money on advertising green initiatives than the actual amounts dedicated toward these initiatives. For instance, a consumer should conclude that a company is greenwashing when it launches a $2 million advertising campaign for an initiative that cost only $1 million. While these signs are useful, they can be difficult to spot. Scheer and Moss (2013) advise consumers to become educated on the practices of companies so that they are better positioned to detect greenwashing.
Influence of Knowledge Gained
I expect that the knowledge that I have acquired regarding greenwashing will affect my behavior as a consumer. Among the impacts of this knowledge is that it has challenged me to become a more cautious consumer. Previously, I trusted nearly all the information that companies fed me. For example, whenever I heard reports that a particular firm had invested in some eco-friendly or sustainable initiative, my response would be one of excitement and thrill. However, now that I understand that there are many companies that are more concerned about their image than the environment, I will be more skeptical in how I approach marketing communication. I feel the need to point out that the knowledge could transform me into a cynical consumer who dismisses all the information that companies share with me. While I am worried about becoming a cynic, I find that skepticism is the most effective method for dealing with greenwashing.
Another influence of the knowledge that I have gained is that it has challenged me to verify and confirm information. As noted above, before this course, I did not subject the information that I encountered to much scrutiny. I was essentially a gullible consumer. As a result of my interaction with the concepts that this course has covered, I now know that I must assess information. We live in an age where fake news and misinformation are rampant. To be safe, it is crucial to fact-check information and only accept details that I have found to be accurate after a rigorous verification process. I feel that other consumers should adopt a similar approach. This approach could hold the key to holding companies accountable and tackling greenwashing.
While I find that the knowledge that I have acquired through the exploration of the concept of greenwashing has been insightful, I must admit that I still feel that there is much that I do not know. For example, while searching for literature on greenwashing, I did not find ample details about how to spot companies that greenwash. I therefore think that I am still vulnerable to being misled and lied to. However, I believe that by verifying information, I will lower my vulnerability.
Perhaps the most important impact of the acquired knowledge is that I am now sensitized about the value of conservation, eco-friendly production and sustainability. If companies are prepared to lie and mislead about how they are dedicated to safeguarding the environment, it must be that environmental conservation is crucial. In the recent past, concerns have been raised that the environment has suffered serious damage and that if humanity fails to respond with resolve, its future could be threatened (Wallheister, 2019). Consumers are among the parties who could help to fuel the environmental conservation movement. For example, White et al. (2019) established that consumers can influence others to develop an interest in sustainably-made products and eco-friendly causes. Hojnik et al. (2019) also observed that consumers have the power to pressure companies to become more environmental conscious and friendly. Now that I understand that I can play a significant role in protecting the environment, I intend to harness my power as a consumer to safeguard our planet. I also plan to become a passionate advocate of sustainability by urging my family and friends to support companies which are working tirelessly to insulate the planet against further harm.
Marketing Applications of Knowledge
Marketers can benefit tremendously from the knowledge that I have gathered concerning greenwashing. Among the applications to which the marketers can put the knowledge is developing interventions that actually enable the environment to flourish. For instance, as noted earlier, firms which greenwash lose the trust and confidence of their customers. It therefore follows that in order to establish a trustworthy brand, marketers should spare no expense in promoting sustainability and conservation efforts. For example, recently, allegations emerged that Volkswagen had lied about the carbon emissions from its vehicles (Laville, 2019). The scandal in which the company was engulfed so it pay huge sums in fines and lose consumer trust. Volkswagen is just one of numerous companies whose greenwashing practices have proven costly and dangerous. The marketers in these companies should understand that in the long run, greenwashing is unsustainable and could even be counterproductive. Therefore, leveraging the information covered in this paper, the marketers need to design interventions, programs, and solutions that shield the environment against harm.
Another application of the knowledge that I acquired is helping marketers to craft messages that actually resonate with their customers and target audiences. Data shows that across the globe, consumers are becoming more environmentally conscious (Nielsen, 2018). This consciousness is driving them to support companies with a proven record and mission of caring for the planet. The knowledge that I have gathered could be useful to managers who are keen to leverage the recent trends in consumer behavior and trends. For example, the marketers could persuade their companies to adopt organizational cultures that place greater emphasis on sustainability and corporate responsibility.
Helping marketers to respond to allegations of involvement in greenwashing is another lesson that the acquired knowledge presents to marketers. In a previous section, it was pointed out that greenwashing is an issue that involves trust. Thus, to repair the damage done, companies that have greenwashed need to implement measures intended to regain the trust of their customers and the larger public. For example, they could invest greater amounts in sustainability initiatives. Led by their marketers, these companies may also invite the public to scrutinize their eco-friendly programs. Basically, the knowledge makes it clear that to restore public and consumer trust, firms must become more transparent and genuine in their concern for the environment. Marketers should spearhead efforts intended to assure the public that the mishaps of the past will not be repeated and that their companies are truly dedicated to supporting the public in conserving the planet.
Enabling marketers to work with their consumers to promote literacy and consciousness is another application of the knowledge presented above. For instance, above, it has been demonstrated that to defeat greenwashing, consumers need to be educated. Marketers can serve an essential function in educating the consumers. For example, they could offer information about the specific programs that actually benefit the environment. Furthermore, the marketers can provide their customers with insights into how to spot greenwashing. Basically, marketers are among the key stakeholders that are needed for the war on greenwashing to deliver the desired outcomes.
In conclusion, greenwashing is among the newest sins that companies are committing. This practice is indeed despicable and represent a new low for the corporate world. In addition to causing firms to lose the confidence of their customers, greenwashing also threatens to erode the progress that is being made in environmental conservation. Fortunately, there are numerous solutions that have been shown to work in combating greenwashing. They include sensitizing the public about the adverse impacts of this practice. For true success to be achieved, companies must play a leading role in fighting greenwashing.
References
Acaroglu, L. (2019). What is greenwashing? How to spot it and stop it. Medium. https://medium.com/disruptive-design/what-is-greenwashing-how-to-spot-it-and-stop-it-c44f3d130d5
Coghlan, J. (2011). Greenwashing: can you trust that label? The Conversation. https://theconversation.com/greenwashing-can-you-trust-that-label-2116
Hojnik, J., Ruzzier, M., & Ruzzier, M. K. (2019). Transition towards sustainability: adoption of eco-products among consumers. Sustainability. doi:10.3390/su11164308
Laville, S. (2019). Volkswagen emissions scandal: class action begins in UK. The Guardian. https://www.theguardian.com/business/2019/dec/01/volkswagen-emissions-scandal-class-action-begins-in-uk
Netto, S. V. F., Sobral, M. F. F., Ribeiro, A. R. B., & Soares, R. L. (2020). Concepts and forms of greenwashing: a systematic review. Environmental Sciences Europe. https://doi.org/10.1186/s12302-020-0300-3 .
Nielsen. (2018). Global consumers seek companies that care about environmental issues. https://www.nielsen.com/eu/en/insights/article/2018/global-consumers-seek-companies-that-care-about-environmental-issues/
Rahman, I., Park, J., & Chi, C. G. (2015). Consequences of “greenwashing”: Consumers’ reactions to hotels’ green initiatives. International Journal of Contemporary Hospitality Management, 27 (6), 1054-81.
Scheer, R., & Moss, D. (2013). How can consumers find out if a corporation is “greenwashing” environmentally unsavory practices? Scientific American. https://www.scientificamerican.com/article/greenwashing/
Wallheister, M. (2019). Most Americans now worry about climate change—and want to fix it. National Geographic. https://www.nationalgeographic.com/environment/2019/01/climate-change-awareness-polls-show-rising-concern-for-global-warming/
Watson, B. (2016). The troubling evolution of corporate greenwashing. The Guardian. https://www.theguardian.com/sustainable-business/2016/aug/20/greenwashing-environmentalism-lies-companies
White, K., Hardisty, D. J., & Habib, R. (2019). The elusive green consumer. Harvard Business Review. https://hbr.org/2019/07/the-elusive-green-consumer
