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Corporate Greenwashing: Submitted By: Ritika Singhal 1239 13

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CORPORATE

GREENWASHING
SUBMITTED BY:
RITIKA SINGHAL
1239
13
BACKGROUND
 Corporate Greenwashing is the selective disclosure of positive information
without full disclosure of negative information so as to create an overly
positive corporate image.
 Due to increasing of environmental problems, and consequently in public
awareness, many stakeholders are more aware of environmental consideration.
 Environmental awareness has grown on society and especially on consumers,
they are eager for environmental-friendly products. When these customers
perceive firms as socially responsible, they may be more willing to buy the
products from these firms at a higher price.
 Sustainable development is defined by “development that meets the needs of
the present without compromising the ability of future generations to meet
their own needs”. The growing demand “drives firms to develop green
marketing strategies to show consumers their good corporate image and social
responsibility”.
 Some companies invest in green marketing communications, to be perceived
as eco-friendly and socially engaged. They advertise and CSR to achieve
better purchase intentions and brand attitudes. However, the reality behind
corporate environmentalism can be disappointing.
 An attempt will also be made at logging the current state of awareness with
respect to greenwashing and what reactions can be expected on account of the
customers post awareness.
 Such greenwashing also harms the goals of sustainability and has a negative
impact on the environment which is of immediate concern.
LITERATURE REVIEW
 Larceneux et. al. (2011) studied the role of independent sustainability ratings
on consumers’ response to companies’ corporate social responsibility (CSR)
communication.
 Delmas et. al. (2011) classified organisations on the basis on environmental
performance and the communication about their environmental performance.
 Krafft et. al. (2014) found that the customers may pose a favourable or neutral
approach towards an eco-friendly advertisement. However, this didn’t rule out
the possibility of them being sceptical as there is always a chance of
greenwashing taking place behind the curtains. Nevertheless, customers were
more favourably disposed towards purchasing a product after witness a green-
washed advertisement.
 Harkink et. al. (2017), studied whether the consumers respond differently to
greenwashing, silent brown, vocal green and silent green organisations. They
found that consumers recognised the green claims in the greenwashing
condition which led to negative judgements about the integrity of
communication.
 De Jong et. al. (2018) found that consumer’s intent to buy isn’t altered by
greenwashing unless the organisation has an actual intention of maintaining
sustainability. They also found that "greenwashing has a positive effect on the
perceived environmental performance of the organization, but a negative effect
on the perceived integrity of its communication".
 Netto et. al. (2020), found that greenwashing was observed in various forms
which made its identification difficult for consumers. Even among expert
consumers who were well informed about greenwashing and the market in
question, it posed to be challenge. As for regular consumers having little to no
information about the said phenomenon, the accusation process was found to
be even more complicated.
OBJECTIVES OF THE STUDY

 To study the evolution and concept of corporate greenwashing

 To analyze customer awareness and response to corporate greenwashing

 To study the impact of corporate greenwashing on environment and


sustainability
SAMPLE AND DATA
 Data was collected in two forms- primary and secondary.
 Primary Data was collected in the form of an google form which

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