“Eco-friendly”, “Green”, “Bio”… Companies are increasingly using those tags as a signal to consumers of their environmental awareness. Yet also on the rise is a public concern about potential corporate lies in this subject, a phenomena labelled as “greenwashing”. According to IESE professor Pascual Berrone, “many companies highlight one green positive aspect of their product or service, and hide the true impact that its production has on the environment”. With more and more NGO’s act as public watchdogs, "the consequences of getting caught can be, in terms of reputation but also economically, severe”, he says.
