Greenwashing free essay sample

Using the Greenwash approach regularly tests the gap between corporate social responsibility claims and actual practise (Font, et al. , 2012). People believe that organisations need to define their roles in society and apply social and ethical standards to their business (Lindgreen amp; Swaen, 2010). In other words, every company should demonstrate Corporate Social Responsibility (CSR) yet studies are showing a large percentage of environmental claims either mislead or deceive the public (Elizabeth, 2010), meaning they are not really demonstrating CSR at all. Forms of Greenwashing come in many different forms, such as reports, advertising, packaging, and campaigns. . The question is how do companies achieve this greenwashing effect? Companies attempt to whitewash consumers through false statements or by using biased presentations of data. Nowadays when companies announce a new product or service, consumers are Greenwashed by making subtle use of specific colours, images and fonts with a seemingly genuine storyline to do with the environment or nature. We will write a custom essay sample on Greenwashing or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page According to Elizabeth (2010), businesses will consistently make claims that their products are benefiting consumers and the environment, usually by placing all marketing emphasis to make it seem environmentally friendly or green. For instance, PepsiCo in 2012 released a new product called Pepsi Next which claims to be naturally sweetened. This fact may be true, however the marketing campaign does not focus on all the additional chemicals and energy used to make the drink. By doing this consumer now believe that it is a good, natural product. This is an example of a greenwashing sin, identified by TerraChoice Environmental Marketing (2010). When companies decide to market in a Greenwash manner there are usually hidden trade-offs. Much like above, companies may promote a new product that is greener and better for the environment than previous products theyve sold. However making the new greener product may have a worse effect on the environment as making it may use more energy or pollution to the environment (Norman amp; Schneider, 2011). Similarly, businesses may make unsupported, inaccurate or vague environmental claims that cannot be backed up with hard evidence, another Greenwashing sin, identified by TerraChoice Environmental Marketing (2010). Companies may also claim that their product is organic or completely natural of which consumers may believe because lack of or limited knowledge of the product. Furthermore, companies trying to Greenwash a product often flood customers with irrelevant information, making a product seem more natural, organic or better for sustaining the environment (TerraChoice Environmental Marketing, 2010). As an example, packaging may have labels saying CFC-Free. CFC is Chlorofluorocarbon and has been illegal for years (Norman amp; Schneider, 2011). Consumers place trust in a company when making a decision to purchase their product. It is a companys corporate social responsibility to fulfil this trust and provide the consumer with a trustworthy, reliable product. When using a Greenwash approach, organisations mislead buyers which is a prime example of unethical business behaviour. Business ethics is known as the code of moral principle and values that governs the behaviour of an organisation with respect to what is right or wrong. Samson amp; Daft, 2012). When a business claims a product is green, good for the environment or natural, the product should be good for the environment, and natural. If an organisation focuses on one positive fact of the product and then bases its marketing campaign on it, it deceives the customers trust as it is misleading and untruthful. Likewise, when companies place irrelevant information throughout their marketing campaign. Consumers can come to believe that the companies’ product is superior then thers just because it has seemingly elaborate information which again deceives the trust between the consumer and business. To be ethical, businesses should be able to back up their environmental claims with proof and be able to use language the average human being can understand. An environmental claim should only be used if it is specific not just a vague statement such as, Its safe for the environment and if there is actually a real benefit. Lastly, an environmental claim should consider the whole product life cycle, not just one small part (Australian Competition amp; Consumer Commision, 2011). If a company in Australia is found to have misleading and deceptive advertising large fines could follow up to 1. 1 million dollars, hence why it is vital that consumers are provided with accurate information (Australian Competition amp; Consumer Commision, 2011). With the obvious negative impact greenwashing has on a business, it must be thought, why would a business try to Greenwash a product? Well, businesses make these claims to create a favourable corporate image (Elizabeth, 2010) or to differentiate themselves and their products from the competition. Companies have realised that consumers today have an increased awareness of the environmental impact that modern goods may have (Australian Competition amp; Consumer Commision, 2011). Organisations feel the pressure to meet consumer demands. Meeting consumer demands is vital to keep a business alive. Since 2009, the number of greener products has increased by 73% (TerraChoice Environmental Marketing, 2010). In todays world businesses feel the need to promote their products as green, environmental friendly, natural, organic and recyclable due to consumers interest of the state in the earth. To greenwash companies often resort to untruthful, misleading, deceiving and irrelevant information to either compete or differentiate themselves from fellow competitors and meet customer demands which is vital for a businesss survival. Companies will focus on small, positive environmental facts rather than focusing on the whole product life cycle. They give vague, nonspecific environmental claims that cannot be backed up by scientific evidence. Organisations may also use irrelevant information to make the product seem superior to competitors and to mislead the consumer in thinking that it may be better for the environment. Unethical business behaviour is strongly evident when business try to use a Greenwash approach. Research by TerraChoice Environmental Marketing (2010) indicates that 95% of greener products commit at least one greenwashing sin. This fact highlights the amounts of companies willing to lie and mislead the public about the products they offer. Companies can get away with this as people in the community are not aware of the techniques companies use, as many people assume that a business would have to truthful and honest of which they do but in a very misleading manner. Bibliography Australian Competition amp; Consumer Commision, 2011. Green Marketing and the Australian Consumer Law, Canberra, Australian Capital Territory: s. n. Elizabeth, K. , 2010. Greenwashing Deluge: Who Will Rise above the Waters of Deceptive Advertising. University of Miami Law Review, Volume 64, pp. 1354,1357,1360,1361. Font, X. et al. , 2012. Corporate Social Responsibility: The disclosure performance gap. Tourism Management, 33(6). Lindgreen, A. amp; Swaen, V. , 2010. Corporate Social Responsibility. International Journal of Management Reviews, 12(1), pp. 1-7. Marketing, T. C. E. , 2010. The Sins of Greenwashing Home and Family Edition, s. l. : s. n. Norman, E. amp; Schneider, M. , 2011. Business Ethics for Dummies. Indianapolis, Indiana: Wiley Publishing. Samson, D. amp; Daft, R. L. , 2012. Fundamentals of Management: Fourth Asia Pacific Edition. 4th ed. Orlando, Florida: Dryden Press. TerraChoice Environmental Marketing (2010) The Sins of Greenwashing: Home and Family Edition, lt;http://sinsofgreenwashing. org/index35c6. pdfgt;