Unmasking Greenwashing: The Urgent Call For Regulatory Vigilance

Karuna KM, Advocate, Kerala

ABSTRACT

Corporate communication has evolved significantly in terms of channel, content, and receivers over the last few decades. Companies must be accountable to a diverse set of stakeholders who have become more curious about nonfinancial information. Furthermore, the type and extent of information can have a substantial impact on the company's competitive advantage, particularly its credibility and reputation. Companies are expected to engage in corporate social responsibility programmes in response to stakeholder and societal calls for action. However, some businesses participate in CSR projects solely to achieve or increase their degree of legitimacy. Companies engage in a practice known as "greenwashing," which is defined as providing false information and then attempting to sway the opinions of stakeholders.

Greenwashing is a phenomenon that can be used in Corporate Social Responsibility (CSR) reports. It occurs when an entity boosts positive social and environmental information in CSR reports by lying or bending the information. No regulations or legal penalties exist for entities that use greenwashing to deceive their stakeholders.

Keywords: Greenwashing, Corporate Social Responsibility