Skip to main content
SpringerLink
Log in

Perceived Greenwashing: The Interactive Effects of Green Advertising and Corporate Environmental Performance on Consumer Reactions

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

The current study investigates the effects of green advertising and a corporation’s environmental performance on brand attitudes and purchase intentions. A 3 × 3 (firm’s environmental performance and its advertising efforts as independent variables) experiment using n = 302 subjects was conducted. Results indicate that the negative effect of a firm’s low performance on brand attitudes becomes stronger in the presence of green advertising compared to general corporate advertising and no advertising. Further, when the firm’s environmental performance is high, both green and general corporate advertising result in more unfavorable brand attitudes than no advertising. The study’s counter-intuitive findings are explained by attribution theory.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2

Similar content being viewed by others

References

  • Alves, I. M. (2009). Green spin everywhere: How greenwashing reveals the limits of the CSR paradigm. Journal of Global Change & Governance, 2(1), 1–26.

    Google Scholar 

  • Banerjee, S., Gulas, C. S., & Iyer, E. (1995). Shades of green: A multidimensional analysis of environmental advertising. Journal of Advertising, 24(2), 21–31.

    Article  Google Scholar 

  • Brammer, S. J., & Pavelin, S. (2006). Corporate reputation and social performance: The importance of fit. Journal of Management Studies, 43(3), 435–455.

    Article  Google Scholar 

  • Cho, C. H., Guidry, R. P., Hageman, A. M., & Patten, D. M. (2012). Do actions speak louder than words? An empirical investigation of corporate environmental reputation. Accounting, Organizations and Society, 37(1), 14–25.

    Article  Google Scholar 

  • Colley, R. H. (1961). Defining advertising goals for measured advertising results. New York: Association of National Advertisers.

    Google Scholar 

  • Cronin, J. J., Jr., Smith, J., Gleim, M., Ramirez, E., & Martinez, J. (2011). Green marketing strategies: An examination of stakeholders and the opportunities they present. Journal of the Academy of Marketing Science, 39(1), 158–174.

    Article  Google Scholar 

  • Dahlstrom, R. (2010). Green marketing management. Mason, OH: South-Western.

    Google Scholar 

  • Davis, J. J. (1992). Ethics and environmental marketing. Journal of Business Ethics, 11(2), 81–87.

    Article  Google Scholar 

  • Davis, J. J. (1993). Strategies for environmental advertising. Journal of Consumer Marketing, 10(2), 19–36.

    Article  Google Scholar 

  • Davis, J. J. (1994). Good ethics is good for business: Ethical attributions and response to environmental advertising. Journal of Business Ethics, 13(11), 873–885.

    Article  Google Scholar 

  • Delmas, M., & Blass, V. D. (2010). Measuring corporate environmental performance: The trade-offs of sustainability ratings. Business Strategy & the Environment, 19(4), 245–260.

    Google Scholar 

  • Delmas, M. A., & Burbano, V. C. (2011). The drivers of greenwashing. California Management Review, 54(1), 64–87.

    Article  Google Scholar 

  • Easterling, D., Kenworthy, A., & Nemzoff, R. (1996). The greening of advertising: A twenty-five year look at environmental advertising. Journal of Marketing Theory & Practice, 4(1), 20–33.

    Google Scholar 

  • Ellen, P. S., Webb, D. J., & Mohr, L. A. (2006). Building corporate associations: Consumer attributions for corporate socially responsible programs. Journal of the Academy of Marketing Science, 34(2), 147–157.

    Article  Google Scholar 

  • Folkes, V. S. (1988). Recent attribution research in consumer behavior: A review and new directions. Journal of Consumer Research, 14(4), 548–565.

    Article  Google Scholar 

  • Folkes, V. S., & Kamins, M. A. (1999). Effects of information about firms’ ethical and unethical actions on consumers’ attitudes. Journal of Consumer Psychology, 8(3), 243–259.

    Article  Google Scholar 

  • Forbes (2012, February). BP goes for public relations makeover to get beyond Gulf spill. Forbes. Retrieved March 29, 2012, from http://www.forbes.com/sites/greatspeculations/2012/02/07/bp-goes-for-public-relations-makeover-to-get-beyond-gulf-spill/?utm_source=dlvr.it&utm_medium=twitter.

  • Forehand, M. R., & Grier, S. (2003). When is honesty the best policy? The effect of stated company intent on consumer skepticism. Journal of Consumer Psychology, 13(3), 349–356.

    Article  Google Scholar 

  • Friestad, M., & Wright, P. (1994). The persuasion knowledge model: How people cope with persuasion attempts. Journal of Consumer Research, 21(1), 1–31.

    Article  Google Scholar 

  • Furlow, N. E. (2010). Greenwashing in the new millennium. Journal of Applied Business and Economics, 10(6), 22–25.

    Google Scholar 

  • Geue, M., & Plewa, C. (2010). Cause sponsorship: A study on congruence, attribution and corporate social responsibility. Journal of Sponsorship, 3(3), 228–241.

    Google Scholar 

  • GfK. (2010). American consumers lead the world in environmental skepticism. Retrieved May 1, 2013, from http://www.gfkamerica.com/newsroom/press_releases/single_sites/006588/index.en.html.

  • Gillespie, E. (2008). Stemming the tide of ‘greenwash’. Consumer Policy Review, 18(3), 79–83.

    Google Scholar 

  • Greer, J., & Bruno, K. (1996). Greenwash: The reality behind corporate environmentalism. New York: Apex Press.

    Google Scholar 

  • Groza, M., Pronschinske, M., & Walker, M. (2011). Perceived organizational motives and consumer responses to proactive and reactive CSR. Journal of Business Ethics, 102(4), 639–652.

    Article  Google Scholar 

  • Gunningham, N. (2009). Shaping corporate environmental performance: A review. Environmental Policy & Governance, 19(4), 215–231.

    Article  Google Scholar 

  • Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis. Upper Saddle River, NJ: Prentice Hall.

    Google Scholar 

  • Harvey, J. H., & Weary, G. (1984). Current issues in attribution theory and research. Annual Review of Psychology, 35(1), 427–459.

    Article  Google Scholar 

  • Heider, F. (1944). Social perception and phenomenal causality. Psychological Review, 51(6), 358–374.

    Article  Google Scholar 

  • Henion, K. E. (1972). The effect of ecologically relevant information on detergent sales. Journal of Marketing Research, 9(1), 10–14.

    Article  Google Scholar 

  • Kelley, H. H. (1971). Attribution in social interaction. New York: General Learning Press.

    Google Scholar 

  • Kelley, H. H., & Michela, J. L. (1980). Attribution theory and research. Annual Review of Psychology, 31(1), 457–501.

    Article  Google Scholar 

  • Kerton, R. R., & Bodell, R. W. (1995). Quality, choice, and the economics of concealment: The marketing of lemons. Journal of Consumer Affairs, 29(1), 1–28.

    Article  Google Scholar 

  • Klein, J., & Dawar, N. (2004). Corporate social responsibility and consumers’ attributions and brand evaluations in a product-harm crisis. International Journal of Research in Marketing, 21(3), 203–217.

    Article  Google Scholar 

  • Klein, B., & Leffler, K. B. (1981). The role of market forces in assuring contractual performance. Journal of Political Economy, 89(4), 615–641.

    Article  Google Scholar 

  • Kotler, P. (2011). Reinventing marketing to manage the environmental imperative. Journal of Marketing, 75(4), 132–135.

    Article  Google Scholar 

  • Lee, M. P., & Lounsbury, M. (2011). Domesticating radical rant and rage: An exploration of the consequences of environmental shareholder resolutions on corporate environmental performance. Business & Society, 50(1), 155–188.

    Article  Google Scholar 

  • Leonidou, C. N., & Leonidou, L. C. (2011). Research into environmental marketing/management: A bibliographic analysis. European Journal of Marketing, 45(1/2), 68–103.

    Article  Google Scholar 

  • Martin, D., & Schouten, J. (2012). Sustainable marketing. Boston: Prentice Hall.

    Google Scholar 

  • Mitchell, A. A., & Olson, J. C. (1981). Are product attribute beliefs the only mediator of advertising effects on brand attitude? Journal of Marketing Research, 18(3), 318–332.

    Article  Google Scholar 

  • Mizerski, R. W., Golden, L. L., & Kernan, J. B. (1979). The attribution process in consumer decision making. Journal of Consumer Research, 6(2), 123–140.

    Article  Google Scholar 

  • Mobley, A. S., Painter, T. S., Untch, E. M., & Unnava, H. R. (1995). Consumer evaluation of recycled products. Psychology & Marketing, 12(3), 165–176.

    Article  Google Scholar 

  • Montoro-Rios, F. J., Luque-Martinez, T., & Rodriguez-Molina, M.-A. (2008). How green should you be: Can environmental associations enhance brand performance? Journal of Advertising Research, 48(4), 547–563.

    Article  Google Scholar 

  • Muehling, D. D., & Laczniak, R. N. (1988). Advertising’s immediate and delayed influence on brand attitudes: Considerations across message-involvement levels. Journal of Advertising, 17(4), 23–34.

    Article  Google Scholar 

  • Newell, S. J., Goldsmith, R. E., & Banzhaf, E. J. (1998). The effect of misleading environmental claims on consumer perceptions of advertisements. Journal of Marketing Theory & Practice, 6(2), 48–60.

    Google Scholar 

  • Öberseder, M., Schlegelmilch, B., & Gruber, V. (2011). ‘Why don’t consumers care about CSR?’: A qualitative study exploring the role of CSR in consumption decisions. Journal of Business Ethics, 104(4), 449–460.

    Article  Google Scholar 

  • Oliver, R. L. (1993). Cognitive, affective, and attribute bases of the satisfaction response. Journal of Consumer Research, 20(3), 418–430.

    Article  Google Scholar 

  • Paladino, A., & Pandit, A. P. (2012). Competing on service and branding in the renewable electricity sector. Energy Policy, 45, 378–388.

    Article  Google Scholar 

  • Parguel, B., Benoît-Moreau, F., & Larceneux, F. (2011). How sustainability ratings might deter ‘greenwashing’: A closer look at ethical corporate communication. Journal of Business Ethics, 102(1), 15–28.

    Article  Google Scholar 

  • Petty, R. E., & Cacioppo, J. T. (1986). Communication and persuasion: Central and peripheral routes to attitude change. New York: Springer.

    Book  Google Scholar 

  • Polonsky, M. J. (1995). A stakeholder theory approach to designing environmental marketing strategy. Journal of Business & Industrial Marketing, 10(3), 29–46.

    Article  Google Scholar 

  • Polonsky, M. J. (2011). Transformative green marketing: Impediments and opportunities. Journal of Business Research, 64(12), 1311–1319.

    Article  Google Scholar 

  • Porter, M. E., & Kramer, M. R. (2006). Strategy & society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78–92.

    Google Scholar 

  • Raju, S., & Rajagopal, P. (2008). Responding to ethical and competence failures. Advances in Consumer Research, 35, 855–856.

    Google Scholar 

  • Ramus, C. A., & Montiel, I. (2005). When are corporate environmental policies a form of greenwashing? Business & Society, 44(4), 377–414.

    Article  Google Scholar 

  • Salo, J. (2008). Corporate governance and environmental performance: Industry and country effects. Competition and Change, 12(4), 328–354.

    Article  Google Scholar 

  • Schuhwerk, M. E., & Lefkoff-Hagius, R. (1995). Green or non-green? Does type of appeal matter when advertising a green product? Journal of Advertising, 24(2), 45–54.

    Article  Google Scholar 

  • Singh, J., Salmones Sanchez, M. d. M. G., & Bosque, I. R. (2008). Understanding corporate social responsibility and product perceptions in consumer markets: A cross-cultural evaluation. Journal of Business Ethics, 80(3), 597–611.

    Article  Google Scholar 

  • Swaen, V., & Vanhamme, J. (2004). See how ‘good’ we are: The dangers of using corporate social activities in communication campaigns. Advances in Consumer Research, 31, 302–303.

    Google Scholar 

  • TerraChoice. (2010). The sins of greenwashing: Home and family edition 2010: A report on environmental claims made in the North American consumer market. Retrieved December 18, 2011, from http://sinsofgreenwashing.org/?dl_id=102.

  • Vanhamme, J., & Grobben, B. (2009). “Too good to be true!”. The effectiveness of CSR history in countering negative publicity. Journal of Business Ethics, 85(Supplement 2), 273–283.

    Article  Google Scholar 

  • Vlachos, P. A., Tsamakos, A., Vrechopoulos, A. P., & Avramidis, P. K. (2009). Corporate social responsibility: Attributions, loyalty, and the mediating role of trust. Journal of the Academy of Marketing Science, 37(2), 170–180.

    Article  Google Scholar 

  • Walker, M., Heere, B., Parent, M., & Drane, D. (2010). Social responsibility and the Olympic games: The mediating role of consumer attributions. Journal of Business Ethics, 95(4), 659–680.

    Article  Google Scholar 

  • Webb, D. J., & Mohr, L. A. (1998). A typology of consumer responses to cause-related marketing: From skeptics to socially concerned. Journal of Public Policy & Marketing, 17(2), 226–238.

    Google Scholar 

  • Weiner, B. (1986). An attributional theory of motivation and emotion. New York: Springer.

    Book  Google Scholar 

  • Weiner, B. (2000). Attributional thoughts about consumer behavior. Journal of Consumer Research, 27(3), 382–387.

    Article  Google Scholar 

  • Xie, S., & Hayase, K. (2007). Corporate environmental performance evaluation: A measurement model and a new concept. Business Strategy & the Environment, 16(2), 148–168.

    Article  Google Scholar 

  • Yoon, Y., Gürhan-Canli, Z., & Schwarz, N. (2006). The effect of corporate social responsibility (CSR) activities on companies with bad reputations. Journal of Consumer Psychology, 16(4), 377–390.

    Article  Google Scholar 

  • Zinkhan, G. M., & Carlson, L. (1995). Green advertising and the reluctant consumer. Journal of Advertising, 24(2), 1–6.

    Article  Google Scholar 

Download references

Conflict of interest

No external organization sponsored this study. Accordingly, there are no potential conflicts of interest to report.

Ethical Standard

This study has been approved by the University of Oregon’s IRB for Human Subjects Research and has been performed in accordance with the ethical standards laid down in the 1964 Declaration of Helsinki. All persons gave their informed consent prior to their inclusion in the study.

Author information

Authors and Affiliations

  1. Department of Management and Marketing, The University of Melbourne, Level 10, 198 Berkeley Street, Melbourne, VIC, 3010, Australia

    Gergely Nyilasy & Angela Paladino

  2. School of Journalism and Communication, University of Oregon, Eugene, OR, 97403, USA

    Harsha Gangadharbatla

Authors
  1. Gergely Nyilasy
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Harsha Gangadharbatla
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Angela Paladino
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Angela Paladino.

Appendix: Advertising and Corporate Environmental Performance Scenario Stimuli

Appendix: Advertising and Corporate Environmental Performance Scenario Stimuli

Green Advertisement (Test)

General Corporate Advertisement (Control)

“Now imagine that you learned just recently that PWXL Chemicals has just won an award for the ‘best environmentally friendly company’ in the chemical category from the United States Environmental Protection Agency.

The award is the highest form of acclaim for corporate environmental protection efforts. It is a proof that PWXL Chemicals has extremely high standards in environmental practices and overall positive impact on the environment.”

“Now imagine that you learned that PWXL Chemicals was responsible for a major environmental catastrophe recently—a large scale chemical leak in one of their US-based plants.

The chemical spill did not only cause severe ecological damage but was responsible for the death of several workers at the plant. Federal investigation showed that without question it was the firm’s subpar environmental standards and managerial negligence that caused the environmental catastrophe.”

High Environmental Performance (Test)

Low Environmental Performance (Control)

Rights and permissions

Reprints and permissions

About this article

Cite this article

Nyilasy, G., Gangadharbatla, H. & Paladino, A. Perceived Greenwashing: The Interactive Effects of Green Advertising and Corporate Environmental Performance on Consumer Reactions. J Bus Ethics 125, 693–707 (2014). https://doi.org/10.1007/s10551-013-1944-3

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-013-1944-3

Keywords

Search

Navigation