Abstract
This chapter examines the evolution of greenwashing practices in corporate sustainability communications and the corresponding development of detection mechanisms. It traces the historical context of greenwashing, exploring its emergence, evolution, and prevalence in response to growing environmental concerns. The chapter also delves into various strategies employed by companies to deceive consumers with false or exaggerated claims of environmental responsibility. Additionally, it highlights the advancements in detection mechanisms, ranging from consumer vigilance and third-party audits to data analysis tools and regulatory interventions. Through this comprehensive analysis, the chapter offers insights into the evolving dynamics of greenwashing and the ongoing efforts to combat deceptive environmental marketing practices.
Compelling Storytelling Narratives for Sustainable Branding
TopGreenwashing: Concept, Origin, Evolution, And Consequences
Definition of Greenwashing
The term Greenwashing is seen as the deceptive marketing practice in which companies or organizations present themselves as environmentally friendly, when in reality they are not (Freitas Netto et al., 2020) This can be done through a variety of tactics, such as vague or generic statements, using terms like “sustainable” or “ecological” without providing specific information about what they mean. There is also the possibility of exaggerating or distorting the positive impact of a product or service in an environmentally friendly manner.
Often, we see the omission of information by not disclosing essential information about the environmental impacts of a company or product. Finally, there are also problems with misleading images and symbols when using images of nature or green colors to create a false impression of sustainability (Y.-S. Chen et al., 2022)
Origins of Greenwashing
The term “greenwashing” was coined in 1986 by Jay Westerveld, an American environmentalist, in an article titled “Green Marketing: Unraveling Green Makeup.” However, the practice itself is much older (Samal & Bhalala, 2023).
Some historical examples of greenwashing include the tobacco industry in the 1950s, which funded research that questioned the link between cigarettes and cancer. There are records that the timber industry in the 1980s used slogans such as “sustainable logging” to cover up illegal deforestation. Also, the auto industry in the 1990s, which promoted cars as “green” when in fact they still polluted a lot. There are many other examples that can be cited (Mysirli & Axarli, 2021).
Evolution of Greenwashing
With the public's growing interest in environmental issues, greenwashing has become increasingly sophisticated. Companies now hire green marketing experts to help them create compelling eco-friendly images.
Some of the latest trends include the use of eco-friendly certifications, when businesses can obtain certifications for their products or services, but not all certifications are reliable (Nygaard, 2023).
In Cause Marketing, companies can partner with environmental causes to promote themselves (Pimonenko et al., 2020) and even change their Sustainability Reports, in which organizations can publish reports that detail their environmental efforts, but these reports are not always transparent or accurate (Moodaley & Telukdarie, 2023).
Key Terms in this Chapter
Consumer Advocacy: Consumer advocacy involves efforts to protect and promote the interests of consumers, particularly in relation to deceptive or unfair business practices. It may include raising awareness, lobbying for policy changes, and providing support and resources to affected consumers.
Sustainability: Sustainability refers to the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs. It encompasses environmental, social, and economic dimensions.
Environmental Degradation: Environmental degradation refers to the deterioration of the natural environment, including the depletion of resources, pollution, habitat destruction, and other negative impacts caused by human activities.
Environmental Marketing: Environmental marketing involves promoting products or services by emphasizing their environmentally friendly attributes or practices. It often aims to appeal to environmentally conscious consumers and differentiate a company's offerings in the market.
Regulatory Frameworks: Regulatory frameworks refer to the set of laws, regulations, policies, and guidelines established by governments or other regulatory bodies to govern various aspects of environmental protection, including advertising and marketing practices.
Greenwashing: Greenwashing refers to the deceptive practice of conveying a false impression or providing misleading information about a company's environmental practices or the environmental benefits of a product or service.
Transparency: Transparency refers to the practice of openly and honestly disclosing information about a company's operations, practices, and impacts, particularly in relation to environmental and social performance. It fosters trust and accountability among stakeholders, including consumers, investors, and regulators.
Ethical Consumerism: Ethical consumerism refers to the practice of making purchasing decisions based on ethical considerations, such as environmental sustainability, social responsibility, and animal welfare. It reflects a growing awareness of the impact of consumer choices on broader societal and environmental issues.
Stakeholder Engagement: Stakeholder engagement involves actively involving individuals or groups who are affected by or have an interest in a company's activities, decisions, or performance. It includes communication, consultation, and collaboration to address concerns, gather input, and build relationships with stakeholders.