Greenwashing in the Energy Sector of Finland

Abstract

Greenwashing is a worldwide phenomenon and a widespread ethical concern in the ever-globalizing world. It is still unclear how the environmental procedures of a company are perceived by consumers, and if these procedures follow ethical guidelines.

This thesis studies the perceived greenwashing effect of companies practicing in the energy sector in Finland. The focus of this research is to find out how consumers see the green marketing communications of the aforementioned companies. Here, the perceived greenwashing effect from the consumer’s perspective is of interest.

A literature review and an exploratory study were conducted to find out how these green communications are evaluated by consumers.

Consequently, greenwashing leads to negative consumer attributions regarding the advertising company. The purchase intentions of consumers can be reduced through increasing greenwashing perceptions. In situations where the environmental performance of a company does not reflect the company’s commitments, consumers lack the contingency of finding relevant data to assess the truthfulness of the green advertising.