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

Bachelor Thesis from the year 2023 in the subject Business economics - Business Ethics, Corporate Ethics, , language: English, abstract: 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?