How corruption works:

  • Regulatory capture is a form of government failure that occurs when a regulatory agency, created to act in the public interest, instead advances the commercial or political concerns of special interest groups that dominate the industry or sector it is charged with regulating. When regulatory capture occurs the interests of firms or political groups are prioritized over the interests of the public, leading to a net loss to society as a whole. Those government agencies are called "captured agencies".
  • Green washing is when a company, government or other group promotes green-based environmental initiatives or images but actually operates in a way that is damaging to the environment, or in an opposite manner to the goal of the announced initiatives. This can also include misleading customers about the environmental benefits of a product through misleading advertising and unsubstantiated claims.
  • Non-Governmental-Groups (NGOs) greenwash when they help create the perception that something damaging to the environment is good for the environment, or when they help create the perception that everything is ok while the reality is that environmental damage is taking place.
  • There are two types of NGO greenwashing: Passive greenwashing and active greenwashing.
  • Passive greenwashing: The NGO help create the perception that everything is OK by not addressing any threats, and ignoring the problems. Passive greenwashing can be very effective because those groups usually receive large amount of money from special interest groups and corporations, and they can afford big marketing campaigns that reach big sections of the population. People assume that everything must be OK, otherwise these groups would be addressing the problems .
  • Active greenwashing: The NGO actively will side with special interest groups or corporations openly stating that something is green when is not, or that some activity will not damage the environment when in reality it will.
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