Greenwashing's Influence on Corporate Performance and Strategies for Regulation and Oversight

Abstract

Greenwashing, the deceptive practice of presenting a misleading impression of a firm's environmental practices, has become a critical issue in corporate sustainability. This research explores the impact of greenwashing on corporate performance and examines strategies for regulating and overseeing greenwashing practices. Through a comprehensive review of literature, we identify the detrimental effects of greenwashing on firms, including reputational damage and loss of consumer trust. We propose several strategies for regulating greenwashing, including enhancing transparency, implementing stricter guidelines for environmental claims, and promoting third-party verification of environmental initiatives. By implementing these strategies, firms can improve their sustainability practices and regain consumer trust.