Purpose - The purpose of this paper is to explore the nuances of the consequences of greenwashing in the consumer and financial markets. Greenwashing is discussed frequently but in very abstract terms. Hence, a closer examination of the palpable consequences elucidates the ripple effects of this widespread phenomenon.Design/methodology/approach - Focal points are the concept of green marketing, the stigmatization of corporations in the media and the regulatory consequences of greenwashing behaviour across consumer and financial markets. The two markets are paralleled in order to trace the novelties as well as the points of commonality in greenwashing.Findings - The current consequences are an insufficient deterrence in both markets. The regulatory trend in both markets is leaning towards more stringent and punitive measures, which will likely affect the efficacy of the deterrence factor.Originality/value - The influence on consumer perception is identified both as a motivating factor for greenwashing and as one of the most immediate elements which is negatively influenced by its exposition. In addition to the fact that greenwashing practices are common across the two markets, this paper identifies that a systemic deterioration of investor trusts significantly compromises the potential of sustainable finance and impacts investment in the financial market, mirrored in the negative consequences on consumer reactions to greenwashed products.

What are the consequences of corporate greenwashing? A look into the consequences of greenwashing in consumer and financial markets

Sergi, Bruno S.
Ultimo
Membro del Collaboration Group
2023-01-01

Abstract

Purpose - The purpose of this paper is to explore the nuances of the consequences of greenwashing in the consumer and financial markets. Greenwashing is discussed frequently but in very abstract terms. Hence, a closer examination of the palpable consequences elucidates the ripple effects of this widespread phenomenon.Design/methodology/approach - Focal points are the concept of green marketing, the stigmatization of corporations in the media and the regulatory consequences of greenwashing behaviour across consumer and financial markets. The two markets are paralleled in order to trace the novelties as well as the points of commonality in greenwashing.Findings - The current consequences are an insufficient deterrence in both markets. The regulatory trend in both markets is leaning towards more stringent and punitive measures, which will likely affect the efficacy of the deterrence factor.Originality/value - The influence on consumer perception is identified both as a motivating factor for greenwashing and as one of the most immediate elements which is negatively influenced by its exposition. In addition to the fact that greenwashing practices are common across the two markets, this paper identifies that a systemic deterioration of investor trusts significantly compromises the potential of sustainable finance and impacts investment in the financial market, mirrored in the negative consequences on consumer reactions to greenwashed products.
2023
File in questo prodotto:
File Dimensione Formato  
3269808.pdf

solo utenti autorizzati

Descrizione: Articolo
Tipologia: Versione Editoriale (PDF)
Licenza: Tutti i diritti riservati (All rights reserved)
Dimensione 160.65 kB
Formato Adobe PDF
160.65 kB Adobe PDF   Visualizza/Apri   Richiedi una copia
Pubblicazioni consigliate

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11570/3269808
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 0
  • ???jsp.display-item.citation.isi??? 0
social impact