Greenwashing in ESG and Its Implications

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Author(s): Ramsha Noori (Indian Institute of Management, Udaipur, India)and Vidya S. Athota (The University of Notre Dame, Australia)
Copyright: 2024
Pages: 27
Source title: ESG Frameworks for Sustainable Business Practices
Source Author(s)/Editor(s): Biju Ajithakumari Vijayappan Nair (University of Kerala, India), Glenn Muschert (Khalifa University of Science and Technology, UAE)and Ambili Jayachandran (University of Kerala, India)
DOI: 10.4018/979-8-3693-3880-3.ch006

Keywords: Business Science Reference / Environment & Agriculture / Operations and Service Management / Sustainable Development

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Abstract

This book chapter discusses greenwashing within the domain of Environmental, Social, and Governance (ESG), reflecting upon the emergent dichotomy between espoused corporate sustainability and actual environmental stewardship. By systematically reviewing the pertinent literature, the chapter highlights the pivotal role of greenwashing as a deceptive tactic within ESG framework. It discusses the Volkswagen's and Coca-Cola's greenwashing practices and offer empirical insights into the inconsistencies in their marketing claims of producing sustainable and eco-friendly products. This chapter explores the variances in ESG reporting due to differing regulatory frameworks and emphasize on the importance of regulatory frameworks in enhancing or impeding transparency in corporate disclosures. The chapter outlines the pressing research questions and practical challenges in containing greenwashing strategies and advocate for future scholarly exploration into the uncharted areas of ESG and corporate sustainability.

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