Friday, November 23, 2012

Forbes' Take on Greenwashing

According to Forbes, litigations of false advertising rates are on the rise, with more and more companies promoting themselves as 'green,' when in fact, these ideas are misleading consumers. California has seen a number of lawsuits in terms of "greenwashing," the idea that marketing a product as 'green' is deceptive in nature. Two California cases mentioned in the Forbes article indicate greenwashing surrounding two water bottle companies; one that does not biodegrade as claimed, and another whose manufacturing, packaging, and transportation, "causes “as much, if not more, of an adverse environmental impact when compared to similar bottled waters” (Forbes, 2012). Rienzo and Lapinski notice that, "there is a growing recognition that consumers support protecting the natural environment," leading marketers and businesses to desire a more environmentally friendly image (2008). The article discusses the possible domino effect greenwashing can have, providing the example of a business owner who wants to "green" her company. Considering the business owner wants to rent to higher paying tenants, she begins the LEED Gold certification process for her building. LEED requires the use of low volatile organic compound, however if she learns she has been "greenwashed," her lease may immediately be revoked, she may have to pay back her loan in full, she may lose her property on foreclosure, and the tenant could ultimately sue for damages caused (Forbes, 2012). Although this describes an extreme case, it proves what deceptive advertising can lead to. Rienzo and Lapinski also note that, "If consumers do perceive violations of the maxims in green advertisements, this should influence their attitudes toward the advertisement and the company," suggesting companies will lose merit and credibility based on greenwashing tactics (2008). I also encountered the LEED certification standards in my second project on the greening of Tim Horton's. Although Tim Horton's received the certification, it leads me to wonder what sort of greenwashing the company came across in gaining such recognition.

The full Forbes article can be found here:
http://www.forbes.com/sites/realspin/2012/03/20/greenwashing-deceptive-business-claims-of-eco-friendliness/

Shop carefully!
Marlee

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