Greenwashing: Theories and 7 Sins

Core Theories

• Greenwashing: Occurs when companies mislead consumers by portraying their products or operations as more environmentally friendly.
• This can involve misleading marketing, vague environmental claims, or focusing on minor sustainable initiatives to overshadow significant environmentally damaging activities.
• Consequences of greenwashing:
  • Decreases consumer trust in sustainable products.
  • Reduces consumer motivation to purchase sustainable products.
  • Harms companies genuinely committed to sustainability and market transparency.
  • Limits the potential for companies to transition to and focus on sustainable products.
  • Slows down the transition needed to reduce the impact on the climate.

The 7 Sins of Greenwashing

• The 7 sins are misleading marketing tactics companies use to give the impression that their products or services are more environmentally friendly than they are.
• Hidden Trade-off: Highlighting a sustainable aspect of a product while ignoring other negative environmental impacts.
• No Proof: Claiming a product is environmentally friendly without providing concrete evidence.
• Irrelevance: Advertising an environmentally friendly aspect that is not relevant.
• Vagueness: Using vague and unclear terms like "green" or "environmentally friendly".
• Fibbing: Making outright false environmental claims.
• Lesser of Two Evils: Promoting a product as more sustainable compared to others in the industry, even if the entire industry is fundamentally unsustainable.
• Worshipping False Labels: Using self-made certifications that mimic official ecolabels to deceive consumers.
• Criticism of 7 Sins:
  • Can lead to a "green hush," where companies avoid highlighting or doing sustainability efforts
  • Can deflect attention from systematic changes.

Green-Gap

• Green gap is the gap between consumers expressing a positive attitude towards sustainability and their behavior.
• Reasons for Green Gap:
  • Sustainable options can be more expensive.
  • Consumers prioritize convenience.
  • Distrust towards greenwashing.
  • Difficulty in discerning truly sustainable choices due to lack of information.
• Impacts on consumer behavior:
  • Internal conflicts between values and actions (cognitive dissonance).
  • Choosing sustainable options in some areas but not others (selective consumption).
  • High costs and inconvenience discourage sustainable choices.
  • Mistrust of companies' sustainable claims.
  • Social norms influencing consumption choices.
  • Difficulty in changing established purchasing habits.

Reducing the Green Gap:

• Reducing price and increasing accessibility.
• Simplifying choices through clear labels and recycling systems.
• Building trust and transparency through reporting and certifications.
• Encouraging engagement through rewards and collaborations.

Cialdini’s 6 Principles (CARS SL)

• Principle of Consistency: People desire consistency with their previous actions.
• Principle of Authority: People listen to experts or authority figures.
• Principle of Reciprocity: People want to return favors.
• Principle of Scarcity: People value what is rare.
• Principle of Social Proof: People look to what others are doing to determine what is right.
• Principle of Likability: People say yes to those they like.
• Pros of Cialdini's Principles
  • Effective influence tools
  • Applicable accross contexts
  • Focus on psychology
  • Science based
• Cons of Cialdini's Principles
  • Human behavior isnt always logical or predictable
  • Focus on short term behavior change, not long term habits
  • Context dependent, so not always effective
• Criticism of Cialdini:
  • Lacks a long-term sustainability perspective
  • Is more focused on influence than collaboration
  • The risk of overuse, undermining effectiveness

SHIFT Method

• Framework to shift consumers to sustainable consumer behavior with psychological factors.
• Social Influence: People are influenced by the decisions and behaviors of others.
• Habit Formation: Behaviors become automatic through repetition.
• Individual Self: Personal identity and values ​​influence choices.
• Feelings and Cognition: Emotions and thinking affects decisions.
• Tangibility: Abstract results of sustainable behavior can create distance.
• Pros of SHIFT:
  • Designed for influencing sustainable consumer behavior.
  • Increased awareness of sustainable alternatives.
• Cons of SHIFT:
  • Oversimplification of behavior change.
  • Focuses on individuals rather than systems and regulations.
  • Time-consuming to change consumer behavior.

Dual Cognition Systems

• Used in marketing to understand and influence consumer behavior.
• By understanding how people make decisions with System 1 or System 2, marketers can make campaigns more effective.
• System 1 (feelings based):
  • Automatic & fast
  • Intuitive
  • Experimental
  • Unconscious
  • Implicit
• System 2 (cognition based):
  • Controlled & slow
  • Analytical
  • Rational
  • Conscious
  • Explicit
• System 1: Fast, automatic, and emotional.
• System 2: Slow, controlled, and analytical.

The Buying Process

• Model that describes the steps a consumer goes through to make a purchase.
  • Need Recognition: The consumer identifies a need and seeks a solution.
  • Information Search: The consumer searches for information through friends, the internet, or in stores.
  • Evaluation of Alternatives: The consumer compares options based on price, quality, etc.
  • Purchase Decision: The consumer makes a purchase.
  • Post-Purchase Behavior: The consumer evaluates the purchase.
• Model Advantages:
  • Structured and easy to understand.
  • Helps companies understand consumer behavior.
  • Helps inform marketing strategies.
  • Especially applicable to complex purchases.
• Model Disadvantages:
  • Too linear and rational.
  • Simplifies the information search process.
  • Primarily applicable to high-involvement purchases.
  • The impact of habits and previous experiences are not properly accounted for.

4 P: The Marketing Mix

• Classical model in marketing that helps companies build strong strategies.
  • Product: Features companies offer.
  • Price: Pricing strategies.
  • Place: Sale and product distribution location.
  • Promotion: Adverts, PR, promotional campaigns, strategies.
• Advantages
  • Provides structure for company to plan marketing effectively.
  • Can be applied to industries and markets effectively.
  • Can ensure the correct offer is available for purchase and at the correct cost.
  • Gives edge over competitors.
  • Gives clear communication.
• Disadvantages
  • Model focuses on company needs, rather than the customer experience.
  • Is intended for products and not for service driven companies.
  • Focuses on mass marketing rather than focused marketing.
  • In a modern world, it does not take into account social media or e-commerce.
  • Is tactical rather than strategic.

Key Factors Influencing Consumption

• Cultural:
  • Culture, subculture affects norms and purchasing habits.
• Social:
  • Reference group, family influence consumer choices through trends.
• Personal:
  • Age, lifestyle, personality affect consumer choices.
• Psychological:
  • Motivation, attitudes (sustainability)
• Contextual:
  • Macro context guide decision, and purchasing.

Triple Bottom Line

• Sustainable design includes planet, people and economy.
• Social sustainability ensures fair living conditions and social justice, rights, equality.
• Economic sustainability builds stable economics and effective resource use.

Ecological Sustainability:

• Focuses on minimizing negative environmental impacts.

Nudge

• Nudge is a concept in behavioral economics that involves subtly influencing people's behavior.
• The goal is to get people to make decisions without limiting their freedom of choice.

Defensive, Reactive, and Proactive Approaches to Sustainability

• Companies react differently to sustainability requirements according to their goal.
  • Defensive:
    • Considers increased sustainability requirements hurts the company.
  • Reactive:.
    • Ignore regulations as much as possible.
  • Proactive:
    • Wants sustainability, now, makes it core part of operation.