Corporate Social Responsibility and Greenwashing: Legal Challenges and Regulatory Strategies for Ensuring Truthful Environmental Claims in India

Corporate Social Responsibility (CSR) serves as an important tool for businesses to address societal challenges and foster sustainability. However, greenwashing is a term that relates to misleading or exaggerated environmental claims, undermining the integrity of CSR initiatives, particularly in India. Greenwashing not only erodes consumer trust but also distorts fair competition, enabling superficial compliance with sustainability goals. Weak legal frameworks and limited enforcement exacerbate these issues, leaving consumers vulnerable to deceptive practices. This paper examines greenwashing in India’s CSR landscape, analysing key cases like the Dabur India Greenwashing Controversy (2023), Adani Group’s Alleged Greenwashing (2022), and the Volkswagen Dieselgate Scandal (2015). It evaluates their impacts on consumer protection, corporate accountability, and sustainability efforts. A comparative analysis of regulatory frameworks in Australia, the United States, and the United Kingdom provides insights into effective governance models. To complement this theoretical exploration, the study includes an empirical analysis of consumer awareness and perceptions of greenwashing across urban and rural India. The paper proposes reforms, including mandatory third-party audits for environmental claims, clearer legal definitions, and stringent penalties for violations. It advocates for leveraging technology, such as blockchain and AI, to enhance transparency. Emphasis is placed on consumer education and ethical corporate governance to foster accountability. By integrating theoretical insights with empirical findings, the study offers actionable recommendations for policymakers and businesses. It aims to strengthen India’s regulatory frameworks, enhance consumer protection, and promote genuine sustainability in CSR initiatives, contributing to the broader goal of sustainable development.