In today’s market, many companies want to appear environmentally friendly because consumers, especially young people care more about sustainability. However, instead of truly improving their practices, some businesses make false or exaggerated claims about being “green”. This practice, known as greenwashing, has become a serious ethical issue in marketing and creates several harmful effects on consumers, businesses, and society.
First, greenwashing damages customer trust. When companies use words like “eco-friendly,” “green,” or “natural” without real proof, they mislead consumers. Once customers discover that a company’s green claims are not true, trust is lost. This not only hurts the brand responsible for greenwashing but also makes people doubt other companies’ environmental messages. As a result, even honest businesses struggle to gain trust.
Second, greenwashing creates confusion in the marketplace. Many brands use vague labels or symbols that make products look environmentally safe, even when they are not. Because of this, consumers, who want to make ethical choices—find it difficult to identify which products are truly sustainable. Too many misleading messages cause frustration, and some people stop trying to choose greener.
Third, greenwashing creates unfair competition. Companies that genuinely invest in sustainable materials, renewable energy, or ethical supply chains often face higher costs. Meanwhile, companies that greenwash can pretend to be eco-friendly without making real changes. This makes it harder for responsible businesses to compete and discourages companies from investing in real sustainability.
Another major impact is long-term damage to brand reputation. Although greenwashing may bring short-term benefits such as increased sales, the harm is far greater once the truth comes out. Customers share negative stories online, the media spreads the scandal, and the company’s image suffers for years. Many brands become examples of unethical marketing in business classes and case studies. For future marketers, this shows that honesty and transparency must be core values in brand communication.
Finally, greenwashing slows down environmental progress. When people repeatedly see fake green claims, they become skeptical and less willing to support genuine eco-friendly products or environmental campaigns. This weakens society’s efforts toward sustainability and reduces the overall impact of real green initiatives.
Pham Phuong Mai - Faculty of Economics and Management