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Green Marketing & The Menace of Greenwashing

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Analysts felt that the trend of consumers favoring green products was still in its infancy but any future growth in this market could be stifled with a spurt in the instances of companies engaging in greenwashing.

They believed that companies should not be allowed to get away with making false green claims. Experts felt that false claims would lead to consumers becoming cynical regarding any green claim, and this would hamper the green movement.

Already, some consumer research studies conducted in the US and Canada indicated that the people in these countries were becoming increasingly skeptical about the green claims made by companies and were rejecting them as mere marketing gimmicks.

Experts urged the consumers and industry to be ever vigilant in preventing greenwashing. They believed that one of the major factors that led to greenwashing was the absence of a central agency to certify the green credentials of a firm.

This allowed companies, even those with questionable green credentials, to step forward and call themselves green. Moreover, there were very few good watchdogs like the National Advertising Division of Council of Better Business Bureaus16 (NAD) though environmental organizations such as coopamerica.org, corpwatch.org, greenbiz.com, treehugger.com played their part in highlighting questionable green claims made by the companies.

The media too remained on constant vigil to expose greenwashers. The result was that since the dawn of the new millennium, various companies including BP, Ford, Starbucks Corp., etc., had been accused of greenwashing at some time or the other.

Experts felt that public scrutiny could be one of the ways to control greenwashing. With the launch of the Greenwashing Index and FTC's proposed updating of the Green Guides, analysts expected a further backlash against companies engaging in greenwashing.

Green marketing was by no means an easy task. Experts in advertising were of the view that the message must be authentic enough for it to work.

"If done poorly or derisively -- if it's seen as a car going through a field -- people will scoff at it; they'll say it's just greenwashing or window dressing,"17 said T3's18 Senior Vice President, Creative Services and Account Planning, Jay Suhr.

The increasing instances of a backlash against greenwashing made the job of marketers even more difficult. Some experts felt that green marketing had become a dangerous prospect even for companies that were sincere.

"Do you really dare put your head above the parapet by touting your greenness and attract very knowledgeable consumers who are going to crawl all over your business... and Greenpeace and every other environmental group you can think of?... If consumers think they can catch you telling a half-truth, they will,"19 said Mike Longhurst, Senior Vice President of leading ad agency McCann-Erickson.

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16] NAD is a panel of six lawyers who issue decisions on complaints from competitors about false claims in ads. Ninety-five percent of companies that used NAD reportedly complied with the agency's decisions.

17] Asher Price, "'Green' Product Claims are About to Receive Some Federal Scrutiny," www.oregeonlive.com, January 6, 2008.

18] T3 is a US-based integrated marketing firm.

19] "Green Marketing Not for the Faint of Heart," www.environmentalleader.com, April 30, 2007.


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