Which one of the following best describes the term "greenwashing"?
AConveying a false impression that a company's products are eco-friendly and environmentally sound
BNon-inclusion of ecological/environmental costs in the Annual Financial Statements of a country
CIgnoring the disastrous ecological consequences while undertaking infrastructure development
DMaking mandatory provisions for environmental costs in a government project/programme
Answer & Solution
Correct answer: A. Conveying a false impression that a company's products are eco-friendly and environmentally sound
Answer: A. GREENWASHING is conveying a FALSE IMPRESSION that a company's products are eco-friendly and environmentally sound.
GREENWASHING is a marketing/PR practice where a company:
- Spends more resources on advertising itself as 'green' or 'sustainable' than on actually reducing environmental impact.
- Uses vague terms like 'natural', 'eco-friendly', 'organic', 'green' without substantive evidence.
- Highlights one minor green attribute to distract from larger environmental harms.
- Makes false or unverifiable environmental claims on product labels.
The term was coined by environmentalist Jay Westerveld in 1986 in the context of the hotel industry's 'reuse-your-towel-to-save-the-environment' notes that were really cost-saving measures dressed up as environmental ones.
Examples:
- Fossil fuel companies advertising their 'sustainability' while expanding oil extraction.
- Fast-fashion brands launching small 'conscious collection' lines while the rest of production remains highly polluting.
- Vague 'eco' labelling on plastic packaging.
Distractors:
(B) Non-inclusion of environmental costs in national accounts = absence of green accounting / lack of natural capital accounting.
(C) Ignoring ecological consequences = environmental negligence, not greenwashing.
(D) Mandatory environmental provisioning = green budgeting, not greenwashing.
Source: UNEP / consumer protection literature; SEBI's BRSR framework introduced disclosure rules to combat greenwashing.
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