Greenwashing in Maximizing Profit and Misleading Information

Greenwashing
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Greenwashing
The primary goal of businesses is to maximize their profits to make their shareholders happy. On the contrary, the public’s main interest is to receive complete, truthful, and non-misleading information about the products they buy. However, many companies are advertising their commodities and services in a way to convince consumers that they are environmentally friendly or produced naturally, which is not the case.
Greenwashing has various dangers from the business perspective. First, it can damage or undermine the brand image of a company. If a business makes its clients believe that its products are produced more sustainably, if these consumers know that the company is lying to them to promote its sales, customer loyalty and trust are lost (U.S. Small Business Administration, 2022). Firms pretending to apply greenwashing have the risk of lawsuits from stakeholders who might realize the misleading environmental claims. They might lose crucial business partners who thought that they are engaging in an environmentally frien...