The Untold Stories of Green Marketing: Combating Greenwashing and Promoting Genuine Sustainability

The Untold Stories of Green Marketing: Combating Greenwashing and Promoting Genuine Sustainability

Aragon, Dioso, Melliza

Bachelor of Science in Office Administration, Polytechnic University of the Philippines – Parañaque City Campus

DOI: https://dx.doi.org/10.47772/IJRISS.2024.8110273

Received: 23 November 2024; Accepted: 28 November 2024; Published: 24 December 2024

ABSTRACT

This research aims to analyse the processes of green marketing, that is the simultaneous occurrence of genuine sustainable marketing and the phenomenon of ‘greenwashing’ in consumer markets. Since the awareness of environmental issues increases, green marketing is becoming more popular in its strategies. Nevertheless, greenwashing or a situation in which companies make misleading statements to give a positive image of the environmental friendliness they are not, hinders consumer confidence, and undermines the genuine ESG approaches. Furthermore, the study highlights the role of managing transparency and the process of authenticating the communication message with the intention of increasing consumers’ confidence in their purchase decisions. Finally, it offers a practical course of action for firms and institutions combating the dangers of greenwashing and fostering the development of more rigorous sustainable practices in the market.

Keywords: Green marketing, Greenwashing, Sustainability, Environmental awareness.

INTRODUCTION

With the increasing awareness of environmentally friendly practices, the strategies commonly known as ‘green marketing’ have received much interest from society and organizations. According to Bhasin (2024), green marketing can be defined as the act of marketing products or services that have been labeled as ‘green’ or coming with a lower stringency to the environment as compared to the other products. This approach focuses to address the consumer push for organic and environment-friendly products due to the rising understanding of the various environmental prerequisites.

However, like with any successful emergent trend, there is always the negative counterpart and in the case of green marketing this is what is referred to as ‘greenwashing’, which according to Eightception (2024), the act of providing false or misleading about an entity in a bid to associate it with environmentally conscious practices. Greenwashing particularly poses a threat to customer relations since it slows down the process of establishing credibility among organizations that indeed take a positive stand in environmental conservation.

Understanding the effects of greenwashing on the patron and their purchasing decisions remains another important factor of consideration. According to the Council on Business & Society Insights (2023), if companies continue to indulge in greenwashing to create a facade that they are environmentally conscious when in reality they aren’t, then there will be a significant drop in trust of consumers in green products hence they will quit purchasing the products. This is well elaborated by Guerreiro and Pacheco (2021) showing that green trust plays a moderating factor in determining consumers’ purchase intentions.

However, there is potentiality in green marketing as a means to support the attainment of true sustainability. Marketing for sustainability, Solis (2024) describes as a strategy that promotes and shapes change towards sustainability in the marketing communication that goes deeper than simple eco-labeling and is created for and brings sustainability into operations based on product design and production processes as well as in marketing communication.

As mentioned by Trandafilovic et al., (2017), the green marketing patterns of the past time and the problems that organisations of different types have encountered on their way to apply green marketing. Specifically, there is a focus on the literature review of greenwashing and the negative consequences it has on environmental claims in advertising, as well as the need to ensure the authenticity of environmental management intentions through the disclosure of relevant information. Most significantly, the literature review also underlines the necessity of enabling consumer consciousness in order to influence sustainable or ecological buying behaviour; as it stipulates that environmental consciousness agrees with perfectly desirable buying habits. Green marketing aims to present approaches to counteracting the problem of greenwashing and improve consumers’ confidence in environmentally friendly marketing. The findings in this paper will explain the formation of future green marketing approaches for use by organizations in the marketplace that might help combat consumer scepticism. Furthermore, to find out the challenges and best practices in implementing transparent and authentic environmental practices within organizations. The focus of our study of green marketing is to investigate the relationship between consumer perception, attitude, and towards the performance of green marketing initiatives. Further, to address these issues, the study will explore the best strategies that organizations can employ to demonstrate genuine commitment to the environment through enhanced transparency. At last, the research will identify measures and practices that can effectively assist consumers in making informed, eco-friendly purchasing decisions.

LITERATURE REVIEW

Historical development of green marketing concepts and practices highlighting the challenges 

Green marketing started in the 1960s and 1970s where increased framed awareness and concerns about the effects of industrialization of the planet called for this approach. According to Trandafilovic et at., (2017), during the 1980s and 1990s, green marketing also evolved again because individuals began to consider the environmental impact of the products they purchased, and companies therefore integrated environmental factors into their promotional approaches. The authors further elaborate on how during the 2000s and 2010s, green marketing advanced further in its evolution through the adoption of more sustainable product development, green branding practices as well as the assimilation of sustainability into the very organizing framework of many organizations

According to Mayther (2024), the article from green marketing academy focuses on the topic of green marketing. The author explains consumers became conscious about the environment and the need to turn to ecological products. The article highlights that green marketing means creating and putting into the marketplace products, services, and activities that are less detrimental to the environment than the typical commercial products and services. Mayther acknowledges that green marketing is more than merely incorporating the environmental elements into the product or the service: the key is in conveying the effect on the environment effectively and substantively to the consumers.

According to Bhaskar (2013), to understand green marketing, the paper aims to discover how firms can use marketing to deal with environmental issues. The article focuses on the increasing relevance of sustainable initiatives and advocating for the integration of environmental concepts into the marketing context and the marketing communication mix in particular. This article explores the advantages of green marketing which include, attracting tailored markets with interest in the environment and their impact and the improved sustainability of the business and the environment.
According to Chopra (2015), green marketing has its advantages and disadvantages for companies in its operation. The author elaborates on what green marketing entails, from green marketing consumers becoming more aware of environmentally friendly products and the push for companies to integrate green practices to the benefits associated with green marketing. But the author also reveals about the problems of the business people which include the high cost of green products, inability to adequately convey the message about environmental benefits, and the issue of green washing as well.

Domingo (2023), this article offers three examples that underscore the benefits of genuine environmental commitment. It is about a potential new problem especially the effects of potential backlash and reputation damage to the companies when consumers are increasingly able to distinguish the actions of companies and their claimed eco level in a term called greenwashing. The article argues that simply incorporating eco-friendly practices in one’s business won’t be enough, and instead, it sure calls for real sustainability if one wants to capture the environmentally aware market.

Green washing and its adverse impact on environmental advertising declaration

According to Schmuck et al., (2018), their study aimed to investigate the impacts of greenwashing in environmental advertising on consumers. We identify three core processes at the root of this effect and develop a theoretical model explaining why greenwashing is able to deceive consumers by inducing positive affect, despite the use of superficial appeal, rather than solid, factual information about the environmental impact of a product, which we term the affect-reason-involvement (ARI) account. The results of the study suggest that greenwashing, even when consumers know that the information is deceptive, can nurture a positive disposition toward the promoted product. The authors claim that this effect is stronger for consumers who are lowly involved in environmental matters, because as such they are more to accept the claims as true and yield to the affective response that the greenwashing tactic would evoke.

According to Ktisti et al., (2022), increased consumer awareness on the environment has led to a new focus on more environmentally friendly products. This trend, therefore, has implications in the degrees of efforts that marketers can make towards the achievement of their goals and objectives. The study revolves around the idea of honesty/accuracy as a common theme in green advertising; the consumer is savvier than ever and can easily be fooled into buying something that is falsely advertised as ‘green. The authors also note that, unlike traditional media, where content is provided by the media companies themselves, social media platforms are populated by users who can contribute various environmental claims; this makes even real claims louder and, mixed with fakes, has a greater potential to influence others. It is significant because the paper focuses on practical and best-understood guidelines for implementing environmentally friendly and non-deceptive green advertising strategies, including the use of influencers, post content, and the results of analysis to reach environmentally conscious consumers.

According to Lopes et al., (2023), the authors further demonstrated that when consumers receive a company’s green signals or perceived messages as fake or misleading, then such consumers may unfavorably attenuate their circular consumption behaviors in areas like recycling, reusing, or buying green products. This social marketing communication study posits that greenwashing erodes credibility of environmental messages that the company disseminates and reduces the overall willingness of consumers to engage in green consumerism. To the same effect, whilst the authors exhibit(ed) interest in green marketing for the support of a circular economy culture, they underscored the bona fide and authentic application in the same.

Identified consumer perception toward environmental compensation claims in advertising such as greenwashing, political consumerism, and brand results. The authors explain that when consumers consider a company’s environmental claims as overemphasized or insincere, their concern level on such claims rise and they are less likely to become political consumers, that is, to boycott or support a certain brand based on its environmental policies. Neureiter et al., (2023), the study also finds that perceived greenwashing could reduce brand attitudes and purchase intentions because the consumers lack trust in the company’s environmental claims or statements.

According to Qayyum et al., (2022), explored green marketing and its influence on the green brand equity, greenwashing, and green confusion. Communication as a green marketing technique, which deserves disclosure of green activities by the brand, can enhance green brand equity according to the authors. However, the study also endorsed greenwashing which is a misleading environmental declaration as having a negative impact on green brand equity. In addition, the authors revealed what can be called “green confusion” that refers to the inability of a consumer to assess the validity of an environmental claim made by a brand as a factor that can reduce the perceived legitimacy and usefulness of a green brand.
Demonstrating environmental commitments to transparency and authenticity

The study is about consumer skepticism and its impact on internet marketing and transparency together with green brand authenticity and evangelism. The authors showed that when the perceived credibility of environmental communication reaches the consumers it is influential in enhancing consumers’ brand commitment and encouraging them to engage in brand advocacy about the green initiatives of the brand in question. According to Li et al., (2022), when there is a perceived cynicism by consumers towards the environmental claims, this dilutes the credibility of the brands green efforts thus decreasing the chances of consumers becoming brand advocates.

According to Wong et al., (2021), found that due to the enhancing demand for environmental sustainability from stakeholders and the requirements of legislators, businesses should adopt. As identified in the paper, there are several strategies that organizations must take in order to improve their disclosure on environmental issues some of which include; full disclosure of environmental information, openness in communicating environmental information, third party assurance and accreditation. The authors insist that through the use of transparency the organizations can create trust and can show the organization’s environmental responsibility and concurrently manage risks of greenwashing.

According to Alyahia et al., (2024), their study explores the phenomenon of greenwashing in the hospitality industry and how green transparency and green authenticity potentially curb this conduct. Hotels that falsify or make false claims about the environmental status of when it practices greenwashing, consumers’ trust and the perceived authenticity of the hotel’s green initiatives is reduced. The author suggests in addition that investments in genuine transparency and acting sustainability do make it less likely for hotels to be seen as engaged in greenwashing. The article said given the shift towards a knowledge-hi-tech service economy, the hotel sector is relatively information intensive. It is right to raise concern about a lack of eco-labels for hotels, and the limited empirical data on the performance of hotels environmental management. The authors emphasize the central need for coordination between hotels’ green-marketing messages and environmental performance and management practices in order to add to the credibility of hotels (specifically those in the study) and to cultivate goodwill amongst the environmentally concerned consumer base.

The article stated that authenticity, purpose and transparency are key components of a company’s strategy in sustainability. According to Schenk (2023), businesses must adapt and move on from greenwashing, as the demands and understanding of eco-conscious consumers continue to grow, the author asserts in conclusion. The article goes on to emphasize that true corporate sustainability requires a far deeper commitment that is centered throughout a company’s actual and sustainable operations, products and communications.

According to Gupta et al., (2020), their Study pointed to the growing emphasis on the transparency of global sustainability governance, calling for sustainable organizational environmental commitments to transparency and authenticity. The authors look at the consequences and opportunities of this emphasis on transparency, investigating how it influences and is influenced by sustainability governance and its impacts at the macro level. Thus, the article is concerned with a critical evaluation of assumptions and implications rendered by transparency-based strategies in the sphere of global environmental governance, pointing at the importance of understanding the relationship between transparency, accountability and practical outcomes of sustainability initiatives.

Empowering consumers consciousness to sustainable buying decision

According to the Forrester report (2021), the article argues that modern consumers are savvier and have more power, and as a result expect businesses to address climate change. According to the article the survey data indicates that a wide majority of consumers would be willing to alter their purchase patterns to back sustainable brands. The article also discusses that a lot of consumers are not buying these companies’ green stories, reminding us why authentic and open sustainability is so important to effective marketing. The article asserts that businesses need to move the need of the hour which is on environmental sustainability and their operations, products, and marketing must be genuine commitments to keep up with the changing demands of their eco-conscious consumers.

According to Guest (2024), the author mentions that the move toward sustainability is not a fad, but a grassroots movement, reflecting a heightened environmental sensibility, and consumer will to do good. The article explains that the majority of consumers, according to research, now take account of a company’s environmental and social performance when they buy. The author emphasizes that this move is not confined to the realm of individual consumer choice, with consumers also wanting companies to be more responsible and be at the vanguard of the battle against climate change.

According to Reichheld (2023), analyses on the increased role of environmental sustainability on consumers and consumers’ expectations. The author explains that the current studies show that the decision to purchase depends on the company’s environmental and social responsibility in a large percentage of consumers. Moreover, the article reveals that the self-sufficing phenomenon points out that consumers are less willing to settle for low sustainability levels as many revealed they would pay a premium for sustainably produced goods and services. The article also points out that sustainability is not limited to individual consumption alone, but consumers are willing to engage businesses to support causes and act against environmental issues in the business’s processes, products, and advertisements. The author focuses on the fact that if a company does not act in accordance with sustainable endeavours’ declarations, that organization is likely to face negative consequences such as backlash from environmentally conscious consumers.

According to Gazzola et al., (2017), their study examines the repercussions of consumers empowered in the digital economy on sustainable purchases. The authors were able to determine that improvement in the digital forms of technology made it easier for users to make informed decisions for the impact of their consumables and consumptions on the environment and the society. The article under discussion also explains that today, empowered consumers are becoming increasingly focused on sustainability concerns due to the growing awareness of people and the willingness of the latter to influence the world in a beneficial way.

Currently there is a rising trend of consumer awareness to consume materials and services that are not damaging to the environment; however, people are still unable to adopt environmentally sustainable processes. According to DaSilva et al., (2024), the article indicates that conventionalist approaches are most effective when organizations apply them as nudges, which include making appropriate information readily available to consumers, making choices easy to understand and trying to appeal to the socially acceptable choice. The authors also discuss that organizations need to ensure that the messages they use in their marketing strategies are consistent with firm commitments to sustainability as this is widely considered a crucial factor that can either enhance or offset the use of psychological nudging.

Synthesis of the Literature Review

Green marketing and consumer perception, attitude and behavior is the lack of empirical data on the long-term effects of greenwash on the trust and ultimate purchase intention of consumers. Although many academic works explore first-time consumer perceptions of green marketing communications, few explore consumer perceptions of skepticism, and distrust in green promises after repeated exposure to possibly misleading and inflated green claims. While it is apparently important to reduce greenwashing occurrences, the gap described herein is significant because successive branding campaigns could reach a point of making the public become cynical once sustainable marketing practices are ignored. More studies could elaborate on the process through which greenwashing affects trust, how social media might influence the idea of greenwashing, and identify strategies to reverse the impacts that greenwashing has on consumer behaviour.

Aim of the Study

The researchers examined the evolution and impact of green marketing practices, particularly focusing on the challenges posed by greenwashing. Our research highlights the significant increase in consumer awareness regarding environmental issues and the corresponding demand for authentic sustainability practices. We explore how misleading claims can damage consumer trust and hinder genuine eco-friendly initiatives.
Our findings emphasize the need for transparency and authenticity in marketing communications, as these factors are crucial for fostering consumer confidence. By identifying effective strategies that organizations can employ to demonstrate true environmental commitment, we aim to empower consumers to make informed purchasing decisions that align with their values. This study seeks to fill existing gaps in understanding consumer perceptions and behaviors related to green marketing, ultimately contributing to more sustainable business practices.

Problem Statement

This study aims to investigate the challenges and opportunities of greenwashing for companies and social media platforms. Therefore, the following research questions are expected to be answered at the end of the study.

1. What part do people understand and feel about greenwashing, do they share similar concerns and complaints?
2. What feelings do people have toward greenwashing claims, do they get angry, disappointed, become cynical or skeptical?
3. What ways do people employ social media to address instances of greenwashing?
4. Is greenwashing an effective strategy in swaying customers’ behavior related to their purchases?

The findings of this research will enhance a better understanding of greenwashing, examining its challenges and opportunities for companies and social media platforms. By exploring public perception and the role of social media in combating greenwashing, the research aims to provide valuable insights into consumer behavior and the effectiveness of this marketing tactic.

METHODS

This study aims at proving and providing viable responses to the statement of the problem. The researcher employed Thematic analysis with a semantic approach to extract the data from various published studies including scholarly and new articles. Thematic analysis is one of the qualitative research analysis approaches that are used to classify and describe the discovered patterns of meaning or themes into categories. It pays attention to commonalities more so with regards to a set of data contrasted to idiosyncrasies. Through topics, the researchers get to know how a given issue is perceived or depicted, which enhances understanding of shared realities Braun et al., (2012). The researcher also used a form of comparative analysis to compare and contrast and determine clear options/controlling and ability to narrow the information down to an idea and possible process/strategies that can assist the researcher in research questions. Comparative analysis means that the researcher compares items on the two sides and presents similarities and differences at the same time. It can work on data sets, products, processes or strategies (Dovetail Editorial Team, 2023).Keywords such as “greenwashing”, “environmental awareness”, “consumers trust”, “consumer awareness” were used to identify and extract the data that aligns with our questions. The objective is to understand the relationship between greenwashing, environmental awareness, consumer trust, and consumer awareness. By extracting data related to these terms, the analysis aims to explore how greenwashing, a deceptive marketing tactic, impacts consumer trust and awareness regarding environmental issues.

Figure 1. Data Gathering and Preparation

Source: (Delmo et al., 2023)

RESULTS AND DISCUSSION

Results

The researchers developed the tables below after the data was gathered to illustrate the codes from the data and categorized them into themes. This process enables researchers to explain each table and meet their research objectives.

Table 1: Understanding and Feeling the Deception

Source: Processed by authors

The table summarizes the primary and the most notable features of the consumer awareness of greenwashing has affected current consumer trust and buying behaviour in today’s market. A study shows that the overall attitude of consumers towards green claims has shifted from standing skeptical if a brand executes green marketing without plausible evidence to being convinced that brands that are green as per their claims (Schmuck et al., 2018; Ktisti et al., 2022). Social media also plays a part in this by increasing awareness of what many refer to as ‘greenwashing’, as more audiences are becoming more demanding of brands in terms of what they are willing to buy. A number of consumers are turned off by unreasonably ambitious environmental slogans, which makes them doubt the authenticity of product environmental effects (Qayyum et al., 2022). Thus, they tend to distance from such brands by not purchasing products of firms that take part in greenwashing and also are fighting against firms that do not adhere to ecological norms (Li et al., 2022; Ktisti et al., 2022). Overall, the idea of greenwashing is however essential in advertising and marketing since it promotes the practice of environmentalism in marketing.

Table 2: Anger, Disappointment, Cynicism and Skepticism

Source: Processed by authors

The table summarizes the level of emotions that consumers are directing towards organizations and their scams is becoming more and more passionate, and especially the dissatisfaction with false sustainability claims (Qayyum et al., 2022). Hence, this dissatisfaction is anchored on disbelief in environmental claims majorly brought about by previous experiences of falling prey to greenwashing strategies (Ktisti et al., 2022). Therefore, more consumers are also increasingly turning cautious, and too often any company’s sustainability claim can be substantiated by formal proof in the form of documentation (Li et al., 2022). The growing awareness may decrease their propensity to buy from firms that they believe are greenwashing, and may ultimately transform their decision to supporting eco-friendly firms (Qayyum et al., 2022). Besides, the constant disappointment with labels impair consumers’ trust in environmentally sustainable products more broadly (Alyahia et al., 2024). Overall, the consumers will engage in private research about the claims, use the skip, engage the companies’ transparency in sustainability, and apply pressure to the companies to act sustainably (Reichheld, 2023).

Table 3: Platform for Exposure and Action

Source: Processed by authors

The table summarizes the primary and the most notable features of social networks serve as sources of information and coordination for disseminating details of greenwashing cases, as well as a means of rallying consumers to collectively demand that companies stop making misleading environmental statements (Ktisti et al., 2022). Therefore, discussion with the consumers on wall postings, followers, and friends on social networks facilitation of marketing of sustainably produced goods and services is deemed to foster awareness of moral consumption. This approach not only informs the consumers about brands that support reduction of their impact on the environment but also position them against companies that are practicing green-washing (Ktisti et al., 2022).

Table 4: Greenwashing’s Effectiveness in Swaying Customer Behavior

Source: Processed by authors

The table reveals that some of the approaches used may be advantageous in managing customer behaviour in the short-run despite their questionable efficacy in the long-run (Forrester Report, 2021). The obtained results show that consumers are demanding more trustworthy and credible information about companies and their environmental actions. (Gupta et al., 2020)

DISCUSSION

Lack of trust and consumer awareness toward greenwashing has dramatically changed consumer trust and buying behavior in the present market. This awareness has made consumers more skeptical concerning the green claim made by the brands regarding their environmental antics (Schmuck et al., 2018; Ktisti et al., 2022). As stated by Qayyum et al., 2022, the awareness is owed partly to social networks, with customers expecting brands to be more sustainable and actively seeking such information.

Many shoppers know that businesses are setting up fronts as environmentally conscious organizations when in reality they are participating in the exact opposite. As a result, it has resulted in increasing levels of skepticism toward such green initiatives and popularity of brands asking about the truthfulness of the actions made (Qayyum et al., 2022). Consumers have been disappointed, frustrated and angry towards companies who indulge in green washing since they are let down by brands they formerly trusted (Ktisti et al., 2022).

Thus, consumers increasingly use social media as voice to tackle cases of greenwashing. Customers are using the social media app Twitter, Facebook, and Instagram to share detail on greenwashing cases, create awareness on the issue and put pressure on the companies involved (Ktisti et al., 2022). Overall, this kind of action has encouraged various companies to come out blazing regarding their environmental policies, as well as not making holes in consumer’s pockets by selling green products and services that are in actuality anything but sustainable.

Greenwashing may indeed influence the customers’ behaviour in the short term, yet as the evidence shows it is not very efficient in the long run (Forrester Report, 2021). Customers are also wising up and making more requests for credible and reliable information on organisations environmental practices (Gupta et al., 2020). There is also a general decrease in the public’s trust of branded sustainability due to increased awareness of greenwashing, with a subsequent reduction in the credibility of these labels as consumers (Alyahia et al., 2022).

One of the previously mentioned risks that have significantly affected consumer trust and buying behaviour is consumer awareness of greenwashing. Consumers are richer and more conscious, often skeptical and in many ways pressuring brands and changing the nature of the market. Although greenwashing may be effective in the short-run since the phenomenon is relatively new, consumer awareness and the demand for credible information are making its long-run effectiveness questionable.

CONCLUSION

In conclusion, the discussion of green marketing indicates that the concept is promising, albeit for some crucial issues like greenwashing. Currently, awareness of environmental problems tends to grow, which means that only strict adherence to the tenets of sustainable management is possible to gain the trust of customers. The literature shows that numerous scams, which include greenwashing, are not only a menace to the specific environmental claims, but they defile the customer’s confidence in green products. Therefore, transparency and authenticity of environmental communication as a foundation to create strong brand equity and improve constant consumer behavior. In essence, the realities of green marketing are such that as organizations venture into it, they will have to plan on how to effectively introduce sustainable practices that will counter skepticism through the use of open, transparent and accountable processes. Finally, the joint involvement in the alignment of the marketing communication and the actual environmental performance will improve consumer trust and the sustainability of the sustainable marketing communication.

ACKNOWLEDGEMENT

We are grateful to God for providing wisdom, strength and endurance that saw us through the course of this research. We are indeed very much grateful to our Research adviser, Campus Director Sheryl R. Morales for her support and direction in conducting this study, for her commendable comments and criticisms that have been helpful greatly in this study. The researchers would also like to thank the Polytechnic University of the Philippines, Paranaque City Campus for allowing the researchers to use their properties in conducting the research. Finally, we would like to extend our hearty thanks to families and friends for their patience during conducting this research. You were motivational all along and you guided us through the right direction.

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