In response to the upward shift in demand for ecological products by consumers, green marketing has become a trend among many companies, especially in the last few years. According to the American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe. However, a phenomenon that is a negative result of green marketing is “greenwashing”. This is a term that describes the deceptive use of green marketing in order to promote a misleading perception that a company’s policies or products are environmentally friendly.
The term was first coined by environmentalist Jay Westerveld in an essay regarding the hotel industry’s practice of promoting the reuse of towels to “save the environment”. Despite this green marketing, little or no effort toward waste recycling was being implemented by the institutions. The actual objective of this “green campaign” was to increase profit. This environmentally conscientious act with an underlying purpose of profit is a prime example of greenwashing.
According to Reuters, a business and financial news website, more than 95% of today’s consumer products claiming to be eco-friendly are actually participating in some form of greenwashing by committing to at least one of the “sins” of greenwashing as defined by TerraChoice, North America’s premiere environmental marketing agency.
However, despite the consequence of greenwashing on ecological marketing, the rates of greenwashing have declined. 73% more “green” products were on the market today than in 2009. Also, there is an increase from 2% in 2009 to 4.5% in 2010 of products that are completely “sin free”. This increase may seem small but it is early evidence of a positive and long lasting trend – companies are beginning to realize the adverse effects greenwashing has on brands and they are beginning to truly participate in green marketing as a result of a eco-friendly product.
