Brand Greenwashing Formation Model: An Interpretative Structural Approach

Document Type : Research Paper

Author

Associate Prof., Department of Business Management, Faculty of Economics and Management, University of Lorestan, Khorramabad, Iran

Abstract

Objective
Numerous environmental challenges and issues have emerged, including the exacerbation of environmental pollution, particulate matter concerns, and problems related to water and air pollution. These challenges also extend to jeopardizing food security and pollution resulting from electronic waste disposal. In response to these issues, along with the intensifying pressure of public regulations and competition among a wide range of organizations, there is a growing need to prioritize environmental matters and consumer health. Organizations are increasingly recognizing the importance of balancing these concerns with their traditional focus on profit and sales. Along with the companies that are determined to provide environmentally friendly products and consider this to be their duty and social responsibility, some companies try to deceive customers by claiming to produce green products. Some companies have used methods such as greenwashing to mislead consumers to benefit from the benefits of this claim by claiming to pay attention to environmental issues. The present research was conducted to present a model of the formation of the phenomenon of brand greenwashing in Iranian organizations. This study utilizes a mixed-method approach, combining both qualitative and quantitative methods within the inductive paradigm. In terms of its purpose, it adopts an inductive approach, while in its nature and method, it follows a sequential exploratory design.
 
Methodology
The research's statistical population consisted of 15 marketing management professors from Iranian universities, all of whom specialized in the field of marketing and had published articles related to social marketing. The selection of participants followed the principle of theoretical adequacy, employing a purposeful sampling method. In the qualitative part, a semi-structured interview was used to collect data, the validity and reliability of which was confirmed using the CVR coefficient and the Kappa-Cohen test, and the data obtained from the interview were analyzed using the Atlas.ti software. The theme was analyzed based on coding. The indicators and components of brand greenwashing were identified from the codes obtained from these interviews. In the quantitative part, a pairwise comparison questionnaire of the interpretive structural approach was used to collect data, and its validity and reliability were confirmed using content validity and retesting, presented using the interpretive structural method of the greenwashing brand model.
Findings
The study's findings reveal the indicators and components of brand greenwashing and propose a five-level model to describe brand greenwashing. In the proposed model, the fifth level encompasses weaknesses or the absence of transparent laws, the presence of ambiguous regulations, pressures from both internal and external stakeholders, stringent standards, and a general lack of transparency. In the research model, the fourth level encompasses the creation of space for extensive media claims, the emergence of negative word-of-mouth advertising, legal restrictions for non-green products or practices, the imperative of documenting green claims, and strategies aimed at undermining competitors. The lack of mechanisms for evaluating green claims, covering the real weaknesses of green, superficiality and ignorance of customers about green activities, and brand deception form the third level of the developed model. magnifying and exaggerating the performance, creating an atmosphere of green mistrust, the short-term horizon of the brand, and taking advantage of the benefits of being green constitute the second level of the model. At the first level of the model, factors such as changes in customers' consumption patterns, the utilization of green laws for financial gain, the reduction of the company's long-term value, and the brand's weak performance are recognized.
 
Conclusion
The results indicate that companies are trying to convince their stakeholders to obtain financial resources (profitability) with the help of the greenwashing approach. Also, the results show that brand washing will ultimately lead to poor performance and a decrease in the value of the company in the long run. Based on the recorded findings, the obtained model suggests that the fifth level termed the foundational level, exerts the most significant influence on the subsequent levels of the model: the fourth, third, and second levels. These levels interact with their preceding ones and impact the following ones. Ultimately, the first level, known as the outcome level, is recognized as the most influential within the model.
 

Keywords

Main Subjects

References

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Journal of Business Management
Volume 15, Issue 3
2023
Pages 554-576

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