Image crises and their impact on a company's long-term results

[samiaseo222]

Greenwashing often leads to image crises that are widely reported by the media and NGOs. A negative media campaign can drastically reduce the value of a brand. One example is Volkswagen, which in 2015 found itself at the centre of an environmental scandal involving the manipulation of its emissions results (‗Edieselgate'). The company suffered financial losses of 30 billion dollars and its reputation has been severely damaged.

The effects of an image crisis can be far-reaching and encompassing:

Declining sales - Consumers abandon japan email list products from companies that are not credible in their eyes,
Loss of investors - Investment funds and business partners avoid working with brands that have business ethics issues.
Hiring issues - For many employees, especially young ones, ethical issues are an important factor when choosing an employer. Companies that resort to "greenwashing" may struggle to attract talent.
Additional financial and operational implications

In addition to penalties and damage to image, greenwashing can incur costs associated with the need to change strategy and take corrective action. Companies have to invest in public relations campaigns, employee training and even a complete overhaul of their production processes to meet legal requirements and consumer expectations. In many cases, these costs outweigh the benefits of previous manipulation activities.