Greenwashing is the deceitful practice of falsely advertising the sustainability of a business in order to mislead consumers. With the increasing pressure from socially conscious consumers, businesses are striving to reduce their environmental impact. Due to lax enforcement of limited and vague regulations, businesses can easily intentionally manipulate consumer perception for ulterior motives or commit the sin of greenwashing through carelessness (Burbano). When businesses brand themselves as ‘green’, they improve their brand image and consumers are duped into supporting unethical environmental offenses.

The 7 Sins of Greenwashing

However, when it backfires the backlash can cause irreparable damage to the brand’s reputation and ultimately their sales (Kewalramani). For example, Volkswagen was recently exposed for their greenwashing tactics and corporate hypocrisy. Within days of the scandal, their share value plummeted an estimated $27.8-billion U.S. and there is the liability of billions more in fines for environmental damage and fraud (Lynes). The estimated number of vehicles affected and must be recalled is 11 million (Jennen).

These underhanded marketing tactics coupled with insincere claims of corporate social responsibility, creates skepticism and distrust as consumers are increasingly aware that many environmental claims may be self-serving (Hoffman). In many cases, sustainable business practices improve profitability. By scrutinizing existing methods and processes when they undergo an environmental initiative, businesses may discover creative solutions to minimize waste, increase efficiency and increase profits.

Works Cited:

Burbano, Vanessa Cuerel, and Magali A. Delmas. “The Drivers of Greenwashing.” California Management Review (2011): 64-87. Print.

Hoffman, Jane, and Michael Hoffman. “What Is Greenwashing?” Scientific American Global RSS. 1 Apr. 2009. Web. 27 Sept. 2015.

Jennen, Birgit. “Germany Said to Defend VW Car Owners on Recall, Repair Costs.” Bloomberg.com. Bloomberg. Web. 26 Sept. 2015.

Kewalramani, Devika, and Richard J. Sobelsohn. “”Greenwashing”: Deceptive Business Claims of “Eco-Friendliness”” Forbes. Forbes Magazine, 20 Mar. 2012. Web. 26 Sept. 2015.

Lynes, Jennifer. “Volkswagen Committed the Cardinal Sin of Greenwashing: Lying.” The Globe and Mail. 24 Sept. 2015. Web. 26 Sept. 2015.