The purpose of this bachelor's thesis is to investigate the external effects of greenwashing on the brand. It examines the phenomenon of greenwashing, focusing on analyzing how companies can adapt their communication and practices to meet customers' increasing expectations and needs. The impact of greenwashing on consumer trust in the brand and corporate sustainability efforts will be analyzed through a critical review of the current situation and real-world case studies.
This thesis will consist of two parts, in addition to the introduction and conclusion. In the theoretical part of the work, different terms are defined from similar terms. In addition, the behavior of consumers is briefly discussed. It is vital to use two points of view: the companies and the consumers, especially the consumer protection organizations. The second main section discusses the external effects of greenwashing. In particular, the methodology, the current status, and the illustration of selected examples are discussed. This paper aims to filter out how greenwashing works and influences or attempts to influence consumers, and what are the market's reactions to this behavior. Key research questions are: How exactly do companies do greenwashing? Do companies abuse the trust of their customers to make profits? What are the consequences of greenwashing for consumers and the market?
Table of Contents
1. Introduction
1.1 Relevance of the topic
1.2 Objective and structure of the work
2. Theoretical basics
2.1 Brand Management
2.2 Greenwashing (Definition and goals - image strategy)
2.3 Corporate Social Responsibility (Distinction from Greenwashing)
2.4 Instruments of Greenwashing
2.5 Consumer behavior
3. Methodology used
3.1 Selection of the literature sources
3.2 Identified literature sources
4. External effects of greenwashing
4.1 Motivation of the Companies
4.2 Examples
4.2.1 Selected Examples – Aldi
4.2.2. Selected Examples – Lufthansa
4.2.3 Example – Volkswagen Diesel scandal
4.3 External Effects - Consumer Protection Associations
4.3.1 External Effects - Consequences of greenwashing - case law
4.3.2 External Effects – Consequences of Greenwashing in New EU Law
5. Conclusion
5.1 Summary of the Results
5.2 Implications for Practice
5.3 Limitation of the work
5.4 Future need for research
Objectives and Core Themes
This thesis investigates the external effects of greenwashing on brands, focusing on how companies adapt communications and practices to meet consumer expectations and whether these actions constitute deceptive behavior that abuses consumer trust.
- Analysis of greenwashing definitions and the distinction from authentic CSR.
- Examination of corporate motivation behind deceptive environmental marketing.
- Evaluation of real-world case studies in retail, service, and automotive sectors.
- Investigation of consumer protection responses and evolving legal regulations in the EU.
- Assessment of the impact of greenwashing on brand reputation and market integrity.
Excerpt from the Book
4.2.1 Selected Examples – Aldi
First, the example of a large discount grocery store is shown. "Aldi" is one of the world's ten largest retail groups. The Aldi Nord and Aldi Süd groups operate many stores and have established themselves as pioneers in price-oriented retailing. As a pioneer in price-conscious shopping, Aldi offers its customers a diverse range of products, from groceries to household goods to electronics. Efficient business practices, a consistent focus on quality, and attractive prices characterize the company. Because of this combination, Aldi has established itself as one of the world's leading retail brands.
Aldi has recently come under heavy criticism. For consumer advocates, Aldi milk is a prime example of greenwashing by a climate label: Like many other chains and retailers, the discounter is greenwashing a product that is anything but climate-friendly. Since November 2020, Aldi has been advertising its "FAIR & GUT" milk as climate-neutral. According to their statements, neither Aldi nor the dairy "Gropper" have information or a comprehensive overview of the actual CO2 emissions. In September 2021, Aldi introduced programs in some countries to promote climate-neutral milk. These programs aim to reduce or offset the greenhouse gas emissions created by the production of milk in order to contribute to climate protection. In the summer of 2022, the consumer organization food watch conducted an investigation that found that Aldi labeled its milk as "climate-neutral" without, however, ensuring an effective reduction in greenhouse gas emissions. It was revealed that the retailer purchased emissions certificates from offset projects to compensate for CO2 emissions. Two of these projects are mentioned as "highly questionable." Aldi printed "climate neutral" on its farm milk, although they did not know the actual CO2 balance. They only cared about printing the seal on their milk without effectively reducing greenhouse gases.
Summary of Chapters
1. Introduction: Presents the relevance of climate-protection topics for consumers and outlines the thesis's objective to investigate the external effects of greenwashing on brands.
2. Theoretical basics: Defines essential concepts including brand management, greenwashing, and CSR, while highlighting the motivations and methods behind deceptive eco-claims.
3. Methodology used: Describes the systematic literature research process conducted to identify and evaluate environmental claims and legal judgments regarding greenwashing.
4. External effects of greenwashing: Analyzes company motivations, investigates specific case studies like Aldi, Lufthansa, and Volkswagen, and examines the role of consumer protection and EU law.
5. Conclusion: Summarizes the key findings, outlines practical implications for businesses, addresses study limitations, and suggests areas for future research.
Keywords
Greenwashing, Brand Management, Corporate Social Responsibility, CSR, Consumer Behavior, Sustainability, Climate Neutral, Marketing Strategy, Corporate Reputation, Consumer Protection, Environmental Claims, EU Green Claims Directive, Brand Identity, Sustainable Development, Ethics.
Frequently Asked Questions
What is the core focus of this thesis?
The work examines the phenomenon of greenwashing and its external effects on brands, specifically investigating how companies influence consumer perceptions through environmental marketing and what reactions this triggers in the market and legal systems.
What are the central research themes?
The research explores the intersection of brand management and sustainability, the definition and identification of greenwashing, corporate motivations for deceptive practices, and the defensive measures taken by consumer protection organizations and legislators.
What is the primary goal of this research?
The objective is to critically analyze how companies use "green" claims, whether these strategies abuse consumer trust for profit, and what the subsequent consequences are for the companies and the market environment.
Which scientific methodology is applied?
The thesis utilizes an extensive literature review and research analysis, mapping academic and professional sources from the past 23 years, supplemented by the analysis of current legal judgments from the JURIS system.
What topics are analyzed in the main body?
The main body covers theoretical definitions, the psychological and economic drivers of greenwashing, industry-specific case studies (Aldi, Lufthansa, Volkswagen), and the evolving legal framework within the European Union.
Which keywords best describe the paper?
Key terms include Greenwashing, Sustainability, Brand Management, Consumer Protection, CSR, Climate Neutral, Marketing Strategy, and EU Regulations.
How does the Aldi case exemplify the author's argument regarding greenwashing?
The author highlights how Aldi used "climate-neutral" labeling on milk based on purchasing carbon credits for questionable projects rather than through actual emission reductions at the production level, thereby misleading price-conscious consumers.
What is the author's conclusion regarding the future legality of green health claims?
The author concludes that new EU regulations like the "Green Claims Directive" are vital to providing preventive legal certainty, forcing companies to move away from vague "green" claims toward substantiated, verifiable environmental data.
- Quote paper
- Laeticia Sara (Author), 2023, External Effects of Greenwashing on the Brand. Consequences for Consumers and the Market, Munich, GRIN Verlag, https://www.grin.com/document/1413702
