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This Padlet examines the critical business ethics issue of greenwashing—a practice where companies mislead stakeholders about their environmental performance or the benefits of their products. We will analyse a key academic paper that establishes a clear typology of greenwashing (Seele & Gatti, 2017), apply two ethical theories to deconstruct its wrongfulness, and link it directly to the challenges of implementing UN Sustainable Development Goal 12 (SDG 12): Responsible Consumption and Production. Combating this deception is fundamental to a truthful and effective transition to a sustainable economy.

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Article Title: Greenwashing Revisited: In Search of a Typology and Accusation-Based Definition Incorporating Legitimacy Strategies

Authors: Seele, P., & Gatti, L.

Journal: Business Strategy and the Environment

Year: 2017

Overview & Link to SDG:

This seminal paper moves beyond vague definitions to establish a precise, accusation-based typology of greenwashing. It identifies strategies such as "firm-level executional" and "product-level claim" greenwashing, providing a clear framework for identifying deceptive communication (Seele & Gatti, 2017). This work is crucial because it equips stakeholders to hold companies accountable.

This accountability is the bedrock of SDG 12. Target 12.6 specifically encourages companies to adopt sustainable practices and integrate sustainability information into their reporting cycle (United Nations, n.d.). Greenwashing, as defined by Seele and Gatti (2017), directly corrupts this intention by turning sustainability reporting into a tool of misinformation, thereby sabotaging the goal's practical implementation.

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Two ethical theories are applied to analyse greenwashing:

1. Utilitarianism (In-depth Analysis)

Utilitarian ethics judges actions based on their consequences, with the goal of maximising overall happiness or well-being and minimising harm. From this perspective, greenwashing creates a profound net loss of utility for society, making it ethically indefensible.

While the deceptive company may gain short-term utility through increased sales, cost savings from avoiding genuine sustainable investment, and an enhanced brand image, these benefits are vastly outweighed by the diffuse and long-term harms inflicted on a much larger number of stakeholders.

Consumer Harm: Consumers are misled into purchasing products under false pretences, often paying a price premium for non-existent environmental benefits. This constitutes a financial loss and a betrayal of trust, leading to cynicism and disengagement from sustainable consumption altogether.

Competitor Harm: Companies that invest genuinely in sustainable practices suffer an unfair competitive disadvantage. Their legitimate products may be overlooked in a marketplace flooded with cheaper, deceptively marketed alternatives, stifling innovation and punishing ethical behaviour.

Societal & Environmental Harm: Greenwashing delays critical environmental action by creating a false impression of progress. It misallocates resources away from genuine solutions and erodes public trust in environmental science, corporate reporting, and governance. The ultimate consequence is a slower response to environmental crises like climate change, which negatively impacts the well-being of current and future generations.

The utilitarian calculus is clear: the minor, short-term benefits for a single corporation are overwhelmingly outweighed by the significant, long-term harms to consumers, honest competitors, and society at large.

2. Deontology (Brief Analysis)

In contrast, deontological ethics focuses on duties, rules, and the inherent rightness or wrongness of actions, regardless of their outcomes. From this viewpoint, greenwashing is fundamentally wrong because it violates the categorical duty of honesty. It treats consumers as a mere means to an end (profit) rather than as rational beings who deserve truthful information to make autonomous choices (Brenkert & Beauchamp, 2010). This breach of the fundamental duty of non-deception makes it ethically impermissible, even if it were to somehow yield positive consequences.

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SDG 12 - Ensure sustainable consumption and production patterns.

The analysis shows that greenwashing is a direct and potent obstacle to SDG 12. It corrupts the information ecosystem necessary for sustainable consumption and makes it impossible to accurately measure progress toward sustainable production. For Target 12.6 to be meaningfully achieved, sustainability information must be authentic and verifiable, not a marketing tool. Eradicating greenwashing is, therefore, a prerequisite for the practical implementation and credibility of the entire goal.

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1. Australian Competition & Consumer Commission (ACCC) - Environmental and sustainability claims

https://www.accc.gov.au/business/advertising-and-promotions/environmental-and-sustainability-claims

This is the official guidance from Australia's primary consumer regulator. It details how businesses can avoid greenwashing and outlines the potential legal consequences under the Australian Consumer Law, providing a real-world, local context for your analysis.

2. The Guardian - "What is greenwashing and how do you spot it?"

https://www.theguardian.com/sustainable-business/2016/aug/20/greenwashing-environmentally-lie-eco

This article from a major international newspaper provides a clear definition of greenwashing and common, real-world examples. It helps bridge the gap between theoretical concepts and how they are discussed and applied in public discourse and media.

3. United Nations Environment Programme (UNEP) - "How to Avoid Greenwashing: Good Practices for Communicating Sustainability"

https://www.unep.org/resources/toolkits-manuals-and-guides/how-avoid-greenwashing

This guide comes directly from the United Nations Environment Programme, offering an authoritative, global perspective. It perfectly connects your ethical analysis and the UN SDGs by showcasing international efforts to address this very issue.

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This Padlet has synthesised the ethical issue of greenwashing with academic research, two core ethical theories, and the global mission of SDG 12. The analysis unequivocally shows that greenwashing is a profound ethical breach which corrodes trust and impedes genuine progress. The bigger picture is critical. For Australia, combating greenwashing is essential for protecting consumers and ensuring a fair market. Globally, it is a non-negotiable prerequisite for achieving the transparency and accountability required by the 2030 Agenda for Sustainable Development.