Aims of greenwashing

The aims behind greenwashing are diverse. In the following, three of them will briefly outlined:

  1. Economic profit maximisation:

    If a company presents itself and its products as sustainable, even though there is no factual basis for this, this legitimises a higher price for its products from the consumer's point of view, which they are then willing to pay. The occasional high costs associated with a change in production towards sustainability are circumvented by greenwashing methods – although a company's expenditure etc. does not increase, greenwashing nevertheless increases revenue by pretending to be sustainable, which leads to profit maximisation.

  2. Improving the own image:

    As characteristics such as sustainability and environmental friendliness have positive connotations and are socially rewarded, "greening" the own image ensures an overall better reputation with other stakeholders (which then, for example in the case of a company, potentially in turn generates more purchasing power and maximises profits or creates more opportunities in terms of bringing the own interests into the political sphere, see point 3.).

  3. Political influence:

    Since (albeit only seemingly) sustainable business practices bring along greater political backing, another reason for engaging in greenwashing is to strengthen the own lobby, the own representation of interests, i.e. the ability of an interest group to influence the executive and legislative branches in its own favour. Under the guise of sustainability as a general interest, lobbying can thus enable the actual particular interests of greenwashing operators to find their way into legislation. Influencing political decisions in this way could then have an exemplary effect in weaker legal regulations in order to undermine impending, unpopular legislative proposals, which in turn serves to increase economic competitiveness.

For further information, see for example:

Landeszentrale für politische Bildung Baden-Württemberg (2023): Greenwashing. Online Version (German)

Seele, P. (2022): Greenwashing. In: Aßländer, M. S. (ed.): Handbuch Wirtschaftsethik. Stuttgart: J. B. Metzler, 727–730. (German)

Müller, U. (2007): Greenwash in Zeiten des Klimawandels. Wir Unternehmen ihr Image grün färben. Studie. Lobby Control – Initiative für Transparenz und Demokratie (ed.). Online Version (German)

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