Why do companies greenwash and what are the results?

Just as a candy manufacturer might exaggerate the tastiness of its newest product to draw in customers, an organization might willingly mislead the public by creating a falsely-green image. For the candy manufacturer, exaggerated information can be the result of overzealous, sloppy or outright dishonest advertising. The same conditions can also produce overblown environmental claims. While some companies try to spread misinformation actively, others wind up greenwashing through sloppiness.

Customers hope companies are truthful about their environmental policies.
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Customers who pay higher prices for natural and organic foods at markets like this Whole Foods in Chicago hope companies are truthful about their environmental policies.

Greenwashing takes its toll on all involved. When greenwashing goes unnoticed, consumers are duped into buying products they think are environmentally sound. They unwittingly support the ecological offenses of businesses. However, when greenwashing is exposed, the offending businesses also suffer from lowered consumer confidence.

But as people become more aware of greenwashing, advocacy groups and government regulators take a greater interest in investigating environmental claims. Regulation, be it from civilians or government bodies, leads to greater responsibility in environmental marketing.

Green Packaging

Warning: Food packaging can be deceiving. This should come as no surprise to anybody who has ever pondered over the serving size on a box of cookies or wondered as a child what happened to all the strawberries on the front of the cereal box. It's no secret food companies often overdo it when designing packaging. And with such a strong market for environmentally-friendly products, many food companies are starting to see green.

Just consider the natural or organic section of your local grocery store -- a single part of a $25 billion a year food industry. Organic sections take up an estimated 1­0 percent of grocery stores, a ratio that has risen 20 percent a year since 2000 [source: ­NY Times].

Green labels are practically jumping off the shelves to snag the environmentally conscious consumer. From wholesome and intentionally non-corporate artwork and typefaces to the gentle use of soft greens and earth tones, the message is simple: buying this product will keep you in Mother Nature's good graces.

But is it greenwashing or just green marketing? Critics and watchdog groups urge consumers to exercise caution. Consider asking the following questions when shopping green:

  • Does the product carry the United States Department of Agriculture organic seal? The seal doesn't necessarily mean greenwashing isn't at work, but it does mean the ingredients are organic enough to meet a government-approved certifier's inspection
  • Does the packaging back up its claims or green theme with specific data? Try to see more than the art. Legitimate claims should be backed up with facts or links to useful information.
  • Is there "lesser of two evils" greenwashing taking place? Don't forget that organic food isn't necessarily healthy food.
  • Do the benefits outweigh the negatives? Remember that organic ingredients or monetary environmental support don't necessarily cancel out all pollution and waste.


In the next section, we'll take a look at what advocacy groups and lawmakers are doing about greenwashing.