Greenwashing, a hidden sin of Commercialism

Greenwashing

In this modern era, businesses in many industries encounter increased environmental and social issues. The idea of “green oriented” businesses are emerging in the market  exponentially.  The  business notion was found in entrepreneur’s passion for environment and healthy lifestyle. Although, the motivation behind the starting up of a business was not supported by the innovative aspirations. Nor the environmentally and socially responsible aspirations either, but by the demand to create new income opportunities.

Credits : Moneylife

The increasing consumption of green products and services is encouraging the adoption and communication of environmental practices in many organizations. Creating a positive image for society. Some consumers are changing their buying behaviour to reduce the impact of their consumption habits over the environment. Choosing an environment-friendly consumption behaviour, often called green consumption. To meet the green consumption requirements, green products now present features differentiating them from conventional products. Such as, differential packaging or environmental certification validating the characteristic of being environment friendly.

Over the past few years companies are investing more time and money on marketing their products or brand as “green”.  Doing this rather than actually doing the hard work to ensure that it is sustainable. As an analogy, greenwashing is to corporations as tree hugging is to individuals who say they care about the environment. It’s a symbolic reference that has little actual outcomes. And more so just confuses the issue attempting to be resolved.

Credits : Miljostyle

History

The concept “green washing” was invented by New York environmentalist Jay Westervelt in 1986 essay concerning hotel  industry’s practice of employing placards in each room endorsing the recycling of  towels apparently to protect the environment (Romero, 2008). Greenwashing involves companies either misleading consumers about the green credentials of a product or service. Or, misleading consumers about the environmental performance of the company as a whole.

Historically, big businesses have been able to get away with greenwashing because there has been limited understanding of what ‘green’ means. As well as an abundance of different definitions and certifications with little standardisation. Paradoxically, there are still some firms deliberately engaging in unscrupulous production and marketing activities (greenwashing). These are tremendously harmful to the nature ultimately, betray its consumers. Due to the midst of these marketing gimmicks, consumers tend to still identify genuine pro-environmental brands.

Research

Recent research indicates that the mere presence of a nature-evoking picture in advertising positively affects consumers’ perceptions of the advertised brand’s ecological image. This in turn prompts more favourable attitudes toward the brand than attitudes prompted by the same advertising without the imagery of nature. Green pan who claim their ceramic cookware is green by emitting 60% less CO2 during its manufacturing process. Fiji water – the Canadian origin brand who had given itself credit for carbon reductions. Volkswagen rigging millions of its diesel engines by pledging to eco-minded consumers. And Nestle claiming to draw their “recycle” product contrary led to a problematic waste pollution.

Credits : Moneylife

These are a few of many companies who are utilizing green products as their ambition to fetching customers empathy and awareness on looking up “sustainable” products. Labels, certificates and registrations on a number from proper authorities, inevitably convinced the dirty notion of companies, which is then unrecognized by the customer itself. Many corporate structures use greenwashing as a way of repairing public perception of their brand. The structuring of corporate disclosure is often set up so as to maximize perceptions of legitimacy. However, a growing body of social and environmental accounting research finds, in the absence of external monitoring and verification, greenwashing strategies amount to corporate posturing and deception.

Credits : Clientearth

Reasoning

The act of  “greenwashing” is recognised  as “economic  fraud” because any  company who luxuriate in it, technically would deny its environmental responsibilities. This is due to the fake belief  that the cost of being eco-friendly or responsible is insignificant to  accept. The fashion industry, cosmetics, food industry and, unsurprisingly big oil companies are notorious for making greenwashed claims. Indeed, when a company decides to behave responsibly and adopt a sustainable development vision, it has to change its corporate culture in depth.

The Forest Stewardship Council (FSC) was set-up to provide a global tool for certifying sustainable wood. To qualify, a logging company needs to ensure harvesting maintains the forest’s biodiversity, productivity and ecological processes. Also that they don’t generate financial profit at the expense of the forest resources, the ecosystem or affected communities. The FSC is an invaluable initiative – there are now over 200 million FSC certified hectares in 89 countries around the world. But, in the past the FSC system has been abused. For example, in 2016, more than 90% of timber on two shipments from Peru to Mexico and the US was illegal in origin.

Credits : Dw.com

The central threat in greenwashing is misleading people into acting unsustainably. If a company says they’re eco-friendly, you may want to buy their products. If these environmental claims turn out to be false, then you’ve accidentally contributed towards harming the environment by supporting the company. The philosophy of continuous growth of profits  and waste should be replaced with the philosophy of sustainability and natural resources respect.

References

1. Adam, Marciniak. (2009). Greenwashing as an Example of Ecological Marketing Misleading Practices. Comparative Economic Research.
2. Adam, Marciniak. (2009). Greenwashing as an Example of Ecological Marketing Misleading Practices. Comparative Economic Research.
3. Dahl, (2010), “Greenwashing: Do You Know What You’re Buying?”. 118 Envtl. Health Perspective
4. Khan,   (2015), “Green  human  resource management  –  A  prerequisite for  sustainable  environment”. Progress in Science and Engineering Research Journal, Vol.18, No.3, pp.1-7.
5. Coad, ,  Segarra, A.,  & Teruel,  M.  (2016), “Innovation and  firm  growth:  Does firm  age  play a  role?”.Research policy, Vol.45, No.2, pp.387-400
6. Pushpanathan, Ambalam. (2020). Greenwashing and Its’ Consequences in Green Entrepreneurial Thrust: A Systematic Review of Literature.
7. https://www.ecowatch.com/nestle-plastic-pollution-greenpeace-2558963533.html
8. https://www.clientearth.org/latest/latest-updates/stories/greenwashing-the-tipping-point/