Consumers today face a barrage of green-friendly messaging from companies hoping to profit from increased concern over environmental issues. Unfortunately, many of these environmental promises don’t pan out. Research carried out in Europe found that 42% of green claims were exaggerated, false, or deceptive, which points to greenwashing on an industrial scale. This is dangerous ground for companies.
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Summary.
New research shows that when companies overcommit and/or do not deliver on promised socially responsible initiatives they damage their relationships with their customers. However, a company’s reputation for product quality or innovation may partially mitigate such a negative impact on customer satisfaction.