Greenwash Today, Suffer Tomorrow

Claiming your company is green but acting otherwise is increasingly risky business. With more and more NGOs acting as public watchdogs, the consequences of getting caught can be severe.

Ecofriendly, green, bio: companies are increasingly using such labels to advertise their environmental credentials to consumers. But, according to IESE professor Pascual Berrone, many of them also "hide their true impact on the environment," a phenomenon known as "greenwashing." With more NGOs acting as watchdogs, "the consequences of getting caught can be severe, both economically and in terms of reputation."