Maria Pynadath, Dr. Sangeetha K L, Prof. Dr. Amiya Bhaumik


Greenwashing, the practice of misleading consumers about the environmental benefits of a product or company, has prompted increasing regulatory scrutiny worldwide. This article examines corporate strategies in response to greenwashing regulations, focusing on transparency, accountability and long-term sustainability commitments. The analysis identifies key strategies such as public apologies, financial restructuring, corporate reorganization and long-term commitments to sustainability. Transparency and accountability are crucial for rebuilding consumer trust and addressing environmental concerns. Case studies including Volkswagen's emissions scandal, Nestlé's water usage claims and Coca-Cola's recycling program, illustrate how companies navigate regulatory scrutiny and align with societal expectations. Institutional Theory and Stakeholder Theory frameworks elucidate the motivations behind these strategies, emphasizing the importance of normative, cognitive and regulative conformity to maintain legitimacy and meet stakeholder demands. Despite variations in effectiveness, these corporate responses underscore a broader effort to enhance sustainability practices and foster stronger relationships with consumers and stakeholders. The findings provide valuable insights for policymakers, regulators and companies in promoting genuine sustainability and enhancing trust.

Keyword : Greenwashing, Sustainability claims, Greenwashing Accusations, Corporate responses, Regulatory Actions

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May 25, 2024
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