To tell you the truth, I have never heard of Greenwashing until now. I am not surprised that there is an actual term for this. I have heard that companies will say that they're green when really they are not. After doing some research it is very clear on how bad it is. So first of all the term Greenwashing refers to the unjustified appropriation of environmental virtue by a company, an industry, a government, a politician or even a non-government organization to create a pro-environmental image, sell a product or a policy, or to try and rehabilitate their standing with the public and decision makers after being embroiled in controversy. (www.sourcewatch.org)
I feel that the biggest problem with Greenwashing is that there isn't enough awareness of the public. This is an important issue just as much as false labeling on so called "Organic" food products is but people don't know enough to recognize it. By educating the public on these issues hopefully we can raise awareness and put a stop to this. Source Watch provides you with information on detecting greenwash I have listed them below:
Rough rules of thumb for detecting greenwash
Big budget greenwash campaigns are designed to defuse scepticism of journalists, politicians and activists. Some rough rules of thumb for testing whether the claims made by a company, government or NGO stack up are:
* Follow the Money Trail: many companies are donors to political parties, think tanks and other groups in the community. Few companies actually disclose in their annual reports exactly whom they are donating to, even though it is shareholders money. Ask about all their donations, not just those they boast about in glossy documents such as the corporate social responsibility reports.
* Follow the membership trail: Many companies boast about the virtues of their environmental policy and performance but hide their anti-environmental activism behind the banner of an industry association to which they belong. Find out what industry association companies are members of and check and see what their policies are. Assume that all individual companies support the trade associations policy positions until such time as they publicly state that they don't agree with them or they resign. (See the article on the third party technique, a central plank in most PR campaigns).
* Follow the paper trail: Most companies, or their trade associations, will make submissions to government and other inquiries on a wide range of issues. Often these submissions will be posted to a website. They will also send lots of letters to politicians and government agencies, which can be accessed by Freedom of Information Act searches. Ask about submissions made by the company and their lobbying on issues you are interested in. You will probably discover that instead of lobbying for tougher environmental standards, they are busy trying to weaken the ones that exist.
* Look for skeletons in the company's closet: Every company has major problems that it doesn't want the public and regulators to know about. Some companies include information in the annual reports about problems that have been in the news in the last year. More often, there will have been problems, occasionally reported in the media, which they don't want to tell shareholders about. Check for information on the company with watchdog groups and in the media and compare that with what they disclose.
* Test for access to information: Many companies will make lofty claims about their commitment to transparency and providing information to 'stakeholders'. Don't just take them at their word. In their reports they will probably refer to environmental impact statements, reviews, audits, monitoring data and other information. If it relates to an issue you are interested in, ask to see it. And remember that 'commercially confidential' is just corporate speak for 'no'.
* Test for international consistency: Most companies will operate to different standards in other countries. Check and see whether their operating standards and procedures are consistent or whether they opt for lower standards where they think they can get away with it.
* Check how they handle their critics: Some companies go to extraordinary lengths to try and silence their critics. This can involve everything from legal threats (see the article on SLAPPs) to funding and collaborating with police and military forces.
* Test for consistency over time: It is common for a company to launch a policy or initiative and then starve it of funds. Or a company will make promises when they are under public pressure but never implement them when the spotlight fades.