Green company

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Patagonia headquarters in Ventura, California. Patagonia is a clothing and outdoors brand known for its climate activism and initiative. Patagonia headquarters.jpg
Patagonia headquarters in Ventura, California. Patagonia is a clothing and outdoors brand known for its climate activism and initiative.

A green company, also known as an environmentally friendly or sustainable business, is an organization that conducts itself in a way that minimizes harm to the environment. Examples of these actions may include the conservation of natural resources, efforts to reduce carbon emissions, a reduction of waste creation, and support of ecological conservation. Green companies often implement environmentally responsible practices across their entire value chain, from sourcing raw materials to manufacturing processes and distribution. [1]

Contents

Green companies aim to contribute to the preservation of the environment and address the challenges posed by climate change. This commitment to environmental stewardship is increasingly important in the context of growing concerns about global warming and the broader environmental impact of human activities.

Green companies and businesses that partake in sustainable practices often receive criticism and face scrutiny for being accused of greenwashing and manipulative marketing. [2] The use of what "green" methods and practices are is often hyperbolized when utilized in advertising, and has led to controversy across industries on whether a practice, product, initiative, or other action is one that is sustainable enough to constitute being green.

Characteristics

Green companies have traits that are common among sustainable businesses. [3]

A reusable bag from a food cooperative is a common example of a sustainable practice a green company may partake in. Co-op tote bag (27380725806).jpg
A reusable bag from a food cooperative is a common example of a sustainable practice a green company may partake in.

Some of the notable practices of a green company are:

A common theme amongst green companies is green marketing. Green companies will utilize this form of advertising to draw in consumers who care about environmental practices. [7] This strategy is used outside of green companies, often being labeled as greenwashing. The line between these practices can at times be thin, and green companies have had controversies on the use of greenwashing, and the efficacy of their sustainability.

Controversy

Supporters of green companies claim that it is far more economical to go green than it is to continue adding harmful chemicals to the atmosphere and the environment in general. Companies that have attempted to become green businesses have often faced significant scrutiny and backlash.

In 2013, The Coca-Cola Company was accused of greenwashing, after marketing a new line of plastic bottles. These ads utilized natural colors and scenes, with a Coca-Cola bottle emerging from leaves in place of a flower. [8] It is alleged that these ads used natural themes to subtly imply a more environmentally conscious packaging. However, said bottles were the same as before.

A Volkswagen "Golf" from 2010, being advertised as "Clean Diesel". VW Golf TDI Clean Diesel WAS 2010 8983.JPG
A Volkswagen "Golf" from 2010, being advertised as "Clean Diesel".

In 2015, the car company Volkswagen, VW, was caught in a large scandal, dubbed by the public as Dieselgate . As an effort to enter American car markets, Volkswagen marketed their new diesel vehicles as "sustainable" through their "Think Blue" campaign. This advertising campaign pitched their diesel technology as, "...being more responsible on the road and more environmentally conscious...". Despite presale testing supporting these claims, independent studies found this to be opposite of the truth. VW had installed "defeat devices" in their diesel vehicles, which were used to cheat emissions tests. [9] These devices were used during emissions testing, and worked by feigning the actual amount emissions in order to pass the test. During normal driving conditions, the emissions were much higher, up to 40 times higher, than allowed by environmental regulations through the Environmental Protection Agency (EPA). This scandal resulted in significant environmental and financial repercussions for the auto company. It led to large recalls of their vehicles, legal battles, and billions of dollars in settlements and financial compensation. [10] The company's reputation was severely damaged, and several high-level executives resigned as a result.

A "circular economy" is an economic model that is focused on the reduction of waste and consumption within a capitalist system. This is often accomplished through the continual reuse and recycling of materials within an economic system, which leads to less environmental impacts and waste production. [11]

The "Corporate Social Responsibility", CSR, is a business model which is reliant on social accountability from stakeholders, employees, and the general public. [12] This is a business model common within companies that value sustainable practices.

"Greenwashing" is a practice of using marketing and advertising strategies to portray a product or business as more environmentally conscious than in actuality. [13] Opponents believe that the environmental claims of "green companies" are often exaggerated and have variously raised accusations of consumer manipulation.

"Greenscamming" is a company or product that falsely profits under the guise of being environmentally friendly. [14] This can include falsely claiming environmentally friendly credentials, exaggerating the benefits of products on an environment, engaging in greenwashing, the use of misleading imagery or messaging, or the exploitation of consumer interest in environmentally friendly products without genuine commitment to sustainability.

Examples

Automotive

Aviation

Doors and Garage Doors

Fashion

Petroleum

Household

Small-business partnerships

See also

References

  1. Kleiner, A (1991-07-01). "What does it mean to be green". Harvard Business Review. 69 (4): 38–42, 44, 46–7. ISSN   0017-8012. PMID   10112920.
  2. Moodaley, Wayne; Telukdarie, Arnesh (January 2023). "Greenwashing, Sustainability Reporting, and Artificial Intelligence: A Systematic Literature Review". Sustainability. 15 (2): 1481. doi: 10.3390/su15021481 . ISSN   2071-1050.
  3. Jenkins, Abby (February 27, 2024). "11 Ways Manufacturers Can Strengthen Their Supply Chains" . Retrieved April 16, 2025.
  4. Fowler, S. J.; Hope, C. (January 2007). "Incorporating sustainable business practices into company strategy" . Business Strategy and the Environment. 16 (1): 26–38. doi:10.1002/bse.462. ISSN   0964-4733.
  5. Bocken, N. M. P.; Short, S. W.; Rana, P.; Evans, S. (2014-02-15). "A literature and practice review to develop sustainable business model archetypes". Journal of Cleaner Production. 65: 42–56. doi: 10.1016/j.jclepro.2013.11.039 . ISSN   0959-6526.
  6. Seidel, Stefan; Jan; Pimmer, Christoph; Brocke, Jan (2010-08-01). "Enablers and Barriers to the Organizational Adoption of Sustainable Business Practices". AMCIS 2010 Proceedings.
  7. Shabbir, Muhammad Salman; Bait Ali Sulaiman, Mohammed Ali; Hasan Al-Kumaim, Nabil; Mahmood, Arshad; Abbas, Mazhar (January 2020). "Green Marketing Approaches and Their Impact on Consumer Behavior towards the Environment—A Study from the UAE". Sustainability. 12 (21): 8977. doi: 10.3390/su12218977 . ISSN   2071-1050.
  8. Lanthorn, Kylie (2020-02-05). "It's all About the Green: the Economically Driven Greenwashing Practices of Coca-Cola". Augsburg Honors Review. 6 (1).
  9. Siano, Alfonso; Vollero, Agostino; Conte, Francesca; Amabile, Sara (2017-02-01). ""More than words": Expanding the taxonomy of greenwashing after the Volkswagen scandal" . Journal of Business Research. 71: 27–37. doi:10.1016/j.jbusres.2016.11.002. ISSN   0148-2963.
  10. Aurand, Timothy W.; Finley, Wayne; Krishnan, Vijaykumar; Sullivan, Ursula Y.; Abresch, Jackson; Bowen, Jordyn; Rackauskas, Michael; Thomas, Rage; Willkomm, Jakob (2018-08-01). "The VW Diesel Scandal: A Case of Corporate Commissioned Greenwashing". Journal of Organizational Psychology. 18 (1). doi: 10.33423/jop.v18i1.1313 . ISSN   2158-3609.
  11. "Ireland" , National Registration for Producers of Electronic Waste, Berlin, Heidelberg: Springer Berlin Heidelberg, pp. 131–143, 2009, doi:10.1007/978-3-540-92746-4_14, ISBN   978-3-540-92745-7 , retrieved 2023-12-15
  12. Sheehy, Benedict (October 2015). "Defining CSR: Problems and Solutions" . Journal of Business Ethics. 131 (3): 625–648. doi:10.1007/s10551-014-2281-x. ISSN   0167-4544. S2CID   254384309.
  13. Pizzetti, Marta; Gatti, Lucia; Seele, Peter (April 2021). "Firms Talk, Suppliers Walk: Analyzing the Locus of Greenwashing in the Blame Game and Introducing 'Vicarious Greenwashing'" . Journal of Business Ethics. 170 (1): 21–38. doi:10.1007/s10551-019-04406-2. ISSN   0167-4544. S2CID   214383794.
  14. Barry, John; Frankland, E. Gene, eds. (2014-02-25). International Encyclopedia of Environmental Politics. Routledge. doi:10.4324/9780203996188. ISBN   978-0-203-99618-8.
  15. "Doors"; Energy.gov, USA
  16. "Building Energy Data Book" Archived 2015-01-08 at the Wayback Machine ; US Department of Energy
  17. "Garage Door Repair". Wednesday, 27 February 2019
  18. Chouinard, Yvon; Stanley, Vincent (2013-10-06). The Responsible Company: What We've Learned from Patagonia's First 40 Years. Patagonia. ISBN   978-1-938340-10-9.
  19. Zint, Michaela; Frederick, Rob (2001). "Marketing and Advertising a 'Deep Green' Company: The Case of Patagonia, Inc" . The Journal of Corporate Citizenship (1): 93–113. doi:10.9774/GLEAF.4700.2001.sp.00010. ISSN   1470-5001.
  20. Russo, Daniel R. Goldstein, Michael V. (2007), "Seventh Generation: Balancing Customer Expectations with Supply Chain Realities" , Case Studies in Sustainability Management and Strategy, Routledge, doi:10.4324/9781351280280-5, ISBN   978-1-351-28028-0 , retrieved 2023-12-16{{citation}}: CS1 maint: multiple names: authors list (link)
  21. "Sustainability, Seventh Generation" , Green Ethics and Philosophy: An A-to-Z Guide, 2455 Teller Road, Thousand Oaks California 91320 United States: SAGE Publications, Inc., 2011, doi:10.4135/9781412974608.n129, ISBN   9781412996877 , retrieved 2023-12-16{{citation}}: CS1 maint: location (link)
  22. Jay, Kate (November 14, 2008), "First Carbon Neutral Zone Created in the United States", Reuters, archived from the original on September 7, 2009
  23. "Commercial Door Manufacture" . Retrieved 15 June 2022.
  24. Auchmutey, Jim (January 26, 2009), "Trying on carbon-neutral trend", Atlanta Journal-Constitution

Sources