Greenwashing Tricking Consumers into Buying Not So Eco-Friendly Products

It's good business for companies to say their products are environmentally friendly. The problem is some of these products are not as good for the environment as companies say they are. "Greenwashing" is when marketers make deceptive statements about products being eco-friendly. Firms claiming to be sustainable, biodegradable, or environmentally conscious often fail to meet the promises they make to consumers. The concept of greenwashing was first promoted by environmentalist Jay Westerveld in the 1980s. He used the term to describe efforts by hotels encouraging guests to reuse their towels from day to day to supposedly help the environment. Westerveld claimed the reason hotels were promoting this "save the towel" campaign was not to protect the planet but to reduce the costs of washing as many towels every day. Research shows that consumers will pay more for eco-friendly products than other comparable products. Younger consumers are more likely to buy green products than their older counterparts. Members of Generation Z spend more money on companies and brands they see as being ethical. A total of 66% of Zers will pay higher prices for what they perceive to be a sustainable brand. For the Millennial Generation that number is 73%. Companies can increase their bottom lines by appearing to be more socially conscious. Some companies do not know they are engaging in greenwashing. It appears they are honestly unaware of the damage their products can do the environment. Environmental organizations have accused some of the best-known brands in the world of greenwashing. Volkswagen was called out for cheating on emissions tests while promoting its low-emissions eco-friendly cars in marketing campaigns. Their engines were releasing up to 40 times the allowed limit for nitrogen oxide pollutants. "Sustainability needs to be at the forefront of brand positioning. If you are questioning the authenticity of sustainability, take a quick look at their positioning strategy, mission statement or objectives," according to Kellie McGilvray, Professor of Marketing at Tiffin University. "This will help to determine the sincerity and seriousness the company is towards being green." Coca-Cola, Starbucks and IKEA are all companies that have been accused of being inconsistent about their environmentally friendly claims while engaging in activities that are not sustainable. In 2020 Coca-Cola was ranked as the top plastic polluter in the world. It announced it would continue to use plastic bottles because they were popular with the company's customers while at the same time promoting its efforts to reduce its waste. Companies often use ecological-sounding language to promote their products. Terms like "natural" or "eco-friendly" may look good but say little about a company's specific sustainability practices. Greenwashing is not to be confused with green marketing. Green marketing is where companies legitimately promote their environmentally friendly products. It is not easy to tell the difference between greenwashing and green marketing. There are no clear rules about which is which. There are no laws or regulations defining what is considered "green." It would be difficult to create laws or regulations in this area because each product or industry is different. What is green in the soda pop industry would be completely different from what is green in the oil industry. It is environmental groups that monitor how companies market their products and call them out in the media when they believe a company or its products are engaging in greenwashing. McGilvray says consumers need to do their homework before buying into going green to make sure the products have the impact on environment they say they do. "Keep in mind the more we consume, the more we impact or affect our environment." Perry Haan is Professor of Marketing at Tiffin University.