External Effects of Greenwashing on the Brand. Consequences for Consumers and the Market

Bachelor Thesis , 2023 , 40 Pages

Business economics - Business Ethics, Corporate Ethics

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?

Inhaltsverzeichnis (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

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This paper aims to explore the phenomenon of greenwashing, analyzing its definition, motivations, and consequences. The work focuses on the strategic use of environmental claims by companies to enhance their brand image and attract consumers, investors, and competitors. It examines how greenwashing can mislead the market and impact consumer behavior, investor decisions, and legal consequences.

• The definition and strategies of greenwashing
• The motivations behind greenwashing practices
• The impact of greenwashing on consumers, investors, and competitors
• The legal and regulatory responses to greenwashing
• The role of consumer protection associations in combating greenwashing

Zusammenfassung der Kapitel (Chapter Summaries)

The paper begins with an introduction emphasizing the relevance of greenwashing in today's market. It establishes the objectives and structure of the work. Chapter 2 delves into the theoretical foundations of greenwashing, providing definitions of brand management, greenwashing, and corporate social responsibility. This chapter also discusses the instruments used in greenwashing and their impact on consumer behavior. Chapter 3 outlines the methodology employed in the research, including the selection and identification of relevant literature sources. Chapter 4 examines the external effects of greenwashing, exploring the motivations behind companies' use of this practice. It presents examples from various sectors, including retail (Aldi), service (Lufthansa), and production (Volkswagen), and analyzes the consequences of greenwashing for consumers, investors, and consumer protection associations. The chapter also discusses legal ramifications and recent EU regulations aimed at tackling greenwashing.

Schlüsselwörter (Keywords)

The key concepts explored in this paper include greenwashing, brand management, corporate social responsibility, consumer behavior, investor behavior, legal consequences, consumer protection, EU regulations, and case law. These terms are essential for understanding the strategic use of environmental claims, the potential for deception, and the implications of greenwashing for both businesses and consumers.

• Author: Laeticia Sara (Author)
• Publication Year: 2023
• Pages: 40
• Catalog Number: V1413702
• ISBN (PDF): 9783346961075
• ISBN (Book): 9783346961082
• Language: English
• Tags: Greenwashing, external effects, externe Effekte, aldi, dieselskandal, Gesetze, Verbraucherschutz, lufthansa, konsumentenverhalten, consumer behaviour, instrumente greenwashing, corporate social responsibility, brand management