Business and Consumer Interest, Greenwashing Risks, and Policy against Greenwashing

Conflicting Priorities in Business Decision-Making


Conflicting priorities are the most difficult problem of business decision-making. This dispute stems from a tension between the company's commercial priorities and the consumer's ethical concerns (Nyilasy, Gangadharbatla & Paladino, 2014).

Consumer Behavior and Ethical Concerns


Reading labeling in today's culture is preoccupied with determining what makes up the goods that people buy. Many consumers buy goods depending on what they are told about the products and the fact that the products do not contain anything dangerous, both to the consumer and to the world. While businesses seek to maximize profits and are seen to be concerned with the pursuit of self-interest, ethics demands that businesses should consider others, particularly their customers, when carrying out their activities pertaining to product promotion (Nyilasy, Gangadharbatla & Paladino, 2014). In light of this, the economic interest of the business self and the ethical interest of the customers often clash.

Risks of Greenwashing


The major risk associated with greenwashing is that customers are likely to lose confidence in the goods and services they purchase. The implication is that these consumers will not buy particular items for the reason that they will have a feeling that they are being misled by use of untruthful labeling. Additionally, businesses engaging in greenwashing risk facing severe consequences and charges from government authorities who may consider them as taking part in misleading advertising (Nyilasy, Gangadharbatla & Paladino, 2014). The ultimate result will be creation of an unfavorable brand image of the company, resulting into reduced competitive advantage.

Impact of Greenwashing on Brand Image


If I were a marketing executive, I would have a policy against greenwashing. The reason is that greenwashing can negatively impact a company's brand image, and that of the services or products it sells (Nyilasy, Gangadharbatla & Paladino, 2014). Furthermore, greenwashing can potentially instigate investigations into the company's procedures, translating into loss of consumers who are likely to feel that they are cheated, concerning the methods used in the business processes (Nyilasy, Gangadharbatla & Paladino, 2014). This can possibly lead to low sales, thereby reducing organizational finances, while also decreasing the organization's earnings and market share. In the long term, the organization's financial sustainability will be negatively impacted.

Discussion 2: Relevant Environmental Law and How Its Compliance is Maintained


Air Quality Law is significantly relevant to my current employer. As a worker in a power plant company, the emissions the company submits into the air needs to be frequently regulated, for purposes of determining whether they comply with environmental laws. To ensure and sustain compliance with the set standards, the company makes use of modern advanced technology to control the quantity of air pollutants emitted into the air, as outlined by Bollen & Brink (2014). Furthermore, the company takes part in activities such as buying of emission credits, particularly when it anticipates an increase in its emissions.

Limitations of Environmental Regulations


In light of this, environmental regulations serve as a hindrance to the organization. The reason is that these regulations are not robust enough to result into some fundamental change in the manner in which the organization operates. Rather, the company assumes a rather middle ground style, thereby discriminatingly imposing these regulations. However, in case the company fails to follow the Air Quality Law, probably it can devise a way of decreasing its discharges on paper. Practically, the company pollutes air more than it ought to be polluting, under the Air Quality Law, implying that it goes against the provisions of the law.


References


Bollen, J., & Brink, C. (2014). Air pollution policy in Europe: quantifying the interaction with greenhouse gases and climate change policies. Energy Economics, 46, 202-215.

Nyilasy, G., Gangadharbatla, H., & Paladino, A. (2014). Perceived greenwashing: The interactive effects of green advertising and corporate environmental performance on consumer reactions. Journal of Business Ethics, 125(4), 693-707.

Deadline is approaching?

Wait no more. Let us write you an essay from scratch

Receive Paper In 3 Hours
Calculate the Price
275 words
First order 15%
Total Price:
$38.07 $38.07
Calculating ellipsis
Hire an expert
This discount is valid only for orders of new customer and with the total more than 25$
This sample could have been used by your fellow student... Get your own unique essay on any topic and submit it by the deadline.

Find Out the Cost of Your Paper

Get Price