IDEAS home Printed from https://ideas.repec.org/a/scm/ecofrm/v6y2017i2p8.html
   My bibliography  Save this article

Greenwashing In Canadian Firms: An Assessment Of Environmental Claimsgreenwashing In Canadian Firms: An Assessment Of Environmental Claims

Author

Listed:
  • Bazlur RAHMAN,

    (University of Chittagong, Chittagong, Bangladesh)

  • Idris ALI,

    (York University, Canada)

  • Alexandru Mircea NEDELEA

    (Stefan cel Mare University of Suceava, Romania)

Abstract

Canadians are becoming increasingly concerned about the environmental performance of firms, and are also seeking the environmental information on consumer products. Consequently, almost every Canadian firm takes the ‘environment’ topic as hot to its marketing policies and promoting ‘greenness’ to benefit from self-declared environmental claims. However, many firms advertise the eco-friendly practices hiding their real activities; the practice called greenwashing, which causes the stakeholders to doubt the sincerity of green marketing of all firms. Therefore, the environmental claims must be verifiable if consumers and other stakeholders are to understand the value of the environmental information the companies highlight. The primary purpose of this paper is to find out how and why the Canadian companies practice greenwashing. Secondly, to identify the stakeholders who demand the environmental information relating to the product’s entire lifecycle and can examine the attributes of environmental claim to recognize greenwashers. Using the “Seven Sins of Greenwashing†model, Canadian Standard Association guidelines, and world best practices, we examined, in a sample of consumer products with the self-declared environmental claim, whether the claim might be false, misleading and deceptive or accurate, meaningful, and reliable. We found a considerable amount of greenwashing attributes in environmental claims by Canadian firms.

Suggested Citation

  • Bazlur RAHMAN, & Idris ALI, & Alexandru Mircea NEDELEA, 2017. "Greenwashing In Canadian Firms: An Assessment Of Environmental Claimsgreenwashing In Canadian Firms: An Assessment Of Environmental Claims," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 6(2), pages 1-8, july.
  • Handle: RePEc:scm:ecofrm:v:6:y:2017:i:2:p:8
    as

    Download full text from publisher

    File URL: http://ecoforumjournal.ro/index.php/eco/article/view/639/382
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gergely Nyilasy & Harsha Gangadharbatla & Angela Paladino, 2014. "Perceived Greenwashing: The Interactive Effects of Green Advertising and Corporate Environmental Performance on Consumer Reactions," Journal of Business Ethics, Springer, vol. 125(4), pages 693-707, December.
    2. Kent Walker & Fang Wan, 2012. "The Harm of Symbolic Actions and Green-Washing: Corporate Actions and Communications on Environmental Performance and Their Financial Implications," Journal of Business Ethics, Springer, vol. 109(2), pages 227-242, August.
    3. Béatrice Parguel & Florence Benoît-Moreau & Cristel Russell, 2015. "Can evoking nature in advertising mislead consumers? The power of ‘executional greenwashing'," Post-Print hal-01463025, HAL.
    4. Goodpaster, Kenneth E., 1991. "Business Ethics and Stakeholder Analysis," Business Ethics Quarterly, Cambridge University Press, vol. 1(1), pages 53-73, January.
    5. Edward Freeman, R. & Evan, William M., 1990. "Corporate governance: A stakeholder interpretation," Journal of Behavioral Economics, Elsevier, vol. 19(4), pages 337-359.
    6. Magali A. Delmas & Michael W. Toffel, 2008. "Organizational responses to environmental demands: opening the black box," Strategic Management Journal, Wiley Blackwell, vol. 29(10), pages 1027-1055, October.
    7. Langtry, Bruce, 1994. "Stakeholders and the Moral Responsibilities of Business," Business Ethics Quarterly, Cambridge University Press, vol. 4(4), pages 431-443, October.
    8. David Markham & Anshuman Khare & Terry Beckman, 2014. "Greenwashing: A Proposal To Restrict Its Spread," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 1-16.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ronald J. Ferguson & Kaspar Schattke & Michèle Paulin, 2021. "Persuasions by Corporate and Activist NGO Strategic Website Communications: Impacts on Perceptions of Sustainability Messages and Greenwashing," Humanistic Management Journal, Springer, vol. 6(1), pages 117-131, April.
    2. Samantha Miles, 2017. "Stakeholder Theory Classification: A Theoretical and Empirical Evaluation of Definitions," Journal of Business Ethics, Springer, vol. 142(3), pages 437-459, May.
    3. David Carassus & Khaled Albouaini & Marie Caussimont, 2013. "Une analyse de l'Audit Expectation Gap dans le contexte français," Post-Print hal-02432110, HAL.
    4. Y. Fassin, 2008. "The Stakeholder Model Refined," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 08/529, Ghent University, Faculty of Economics and Business Administration.
    5. Yvette Sterbenk & Sara Champlin & Kasey Windels & Summer Shelton, 2022. "Is Femvertising the New Greenwashing? Examining Corporate Commitment to Gender Equality," Journal of Business Ethics, Springer, vol. 177(3), pages 491-505, May.
    6. Velamuri, Rama & Venkataraman, Sankaran, 2005. "Why stakeholder and stockholder theories are not necessarily contradictory: A knightian insight," IESE Research Papers D/591, IESE Business School.
    7. Ravi Dutta‐Powell & Joshua J. Rhee & Saul Wodak, 2024. "Two interventions for mitigating the harms of greenwashing on consumer perceptions," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 882-903, February.
    8. Francesca Bernini & Fabio La Rosa, 2024. "Research in the greenwashing field: concepts, theories, and potential impacts on economic and social value," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(2), pages 405-444, June.
    9. Wei Li & Weining Li & Veikko Seppänen & Timo Koivumäki, 2022. "How and when does perceived greenwashing affect employees' job performance? Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1722-1735, September.
    10. Qiong Yao & Suzhen Zeng & Shibin Sheng & Shiyuan Gong, 2021. "Green innovation and brand equity: moderating effects of industrial institutions," Asia Pacific Journal of Management, Springer, vol. 38(2), pages 573-602, June.
    11. Mahabubur Rahman & Saqib Aziz & Mathew Hughes, 2020. "The product‐market performance benefits of environmental policy: Why customer awareness and firm innovativeness matter," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 2001-2018, July.
    12. Birindelli, Giuliana & Chiappini, Helen & Jalal, Raja Nabeel-Ud-Din, 2024. "Greenwashing, bank financial performance and the moderating role of gender diversity," Research in International Business and Finance, Elsevier, vol. 69(C).
    13. Oluyomi A. Osobajo & David Moore, 2017. "Who is Who? Identifying the Different Sub-groups of Secondary Stakeholders within a Community: A Case Study of the Niger Delta Region of Nigeria Communities," International Business Research, Canadian Center of Science and Education, vol. 10(9), pages 188-209, September.
    14. Pengyu Chen & Zhongzhu Chu, 2024. "Mere facade? Is greenwashing behaviour lower in low‐carbon corporates?," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4162-4174, July.
    15. Chaoyu Cao & Qibo Chen & Lili Zhu, 2024. "Corporate Greenwashing Unexpectedly Caused by the Green Credit Policy: A Comparison between Environmental Sustainability Information Disclosure and Actual Environmental Protection Investment from Chin," Sustainability, MDPI, vol. 16(17), pages 1-14, August.
    16. Nicolae Al. Pop & Steluta Todea & Cristina-Veronica Partenie & Cristina Ott, 2020. "Stakeholders’ Perception Regarding Sustainable Universities," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 22(54), pages 330-330, April.
    17. Huang, Hongfu & Xing, Xinjie & He, Yong & Gu, Xiaoyu, 2020. "Combating greenwashers in emerging markets: A game-theoretical exploration of firms, customers and government regulations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    18. Zhang, Dongyang, 2023. "Can environmental monitoring power transition curb corporate greenwashing behavior?," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 199-218.
    19. Rick Hardcopf & Kevin Linderman & Rachna Shah, 2024. "Do Firms Follow through on Environmental Commitments? An Empirical Examination," Sustainability, MDPI, vol. 16(17), pages 1-29, August.
    20. Santa, Juana Castro & Drews, Stefan, 2023. "Heuristic processing of green advertising: Review and policy implications," Ecological Economics, Elsevier, vol. 206(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:scm:ecofrm:v:6:y:2017:i:2:p:8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Iulian Condratov (email available below). General contact details of provider: https://edirc.repec.org/data/feusvro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.