Greenwashing and corporate environmental irresponsibility – improper practices of companies

Abstract

Purpose: To identificate factors prompting companies to undertake activities bearing the hallmarks of greenwashing, and to indicate the link between these activities and the concept of corporate environmental irresponsibility. Design/methodology/approach: The purpose of the article was achieved through a critical analysis of the literature on greenwashing and corporate environmental irresponsibility. In addition, data provided by Eurostat on gross value added for total environmental goods and services sector for the 27 countries of the European Union from the years 2000-2019 were analysed. Findings: The concept of corporate social irresponsibility is common in the context of immoral and dishonest corporate behaviour. By acting in a socially irresponsible manner companies want to make quick profit, and they do not see the role of socially responsible actions as crucial. In this context corporate social irresponsibility is similar to the concept of greenwashing. Socially irresponsible companies, however, do not intend to "deceive" consumers and "artificially" create an image of socially responsible companies, which is very characteristic of greenwashing practices. The article identifies the most important reasons for greenwashing activities, relating to companies’ internal and external motives. The article also presents ways to prevent greenwashing activities, undertaken both at the company level and at the level of superior institutions. Originality/value: The article systematizes knowledge about the greenwashing practices of companies. Also, links between these practices and the concept of corporate environmental irresponsibility are indicated. Keywords: Corporate social responsibility, corporate environmental irresponsibility, greenwashing. Category of the paper: General review.