Business Strategy

Perceived Greenwashing and Sustainable Business Strategies: Understanding Organizational Roles in Addressing Environmental Issues

Article Details

Pub. Date	: June' 2022
Product Name	: The IUP Journal of Business Strategy
Product Type	: Article
Product Code	: IJBS020622
Author Name	: Sumeet Jhamb and Rebecca Fiegl
Availability	: YES
Subject/Domain	: Strategic Journals
Download Format	: PDF Format
No. of Pages	: 10

Price

Download

Abstract

In their efforts to stay ahead of rivals, companies are trying to create sustainable competitive advantages in terms of building climate action leadership, protecting biodiversity, and shepherding sustainability. In general, this may involve actions like pretending to be a green company to boost the social image or using cheap and substandard raw materials to lower costs and increase profits. Some of these actionable methods are very radical, with some real potential to influence climate change in a negative way. Therefore, governments and organizations need to step up to stop the negative and harmful environmental issues and push for a better climate and healthier earth. The current study focuses on the effects and roles of organizations, corporations and governments in the circularization of the global economy and circular business models. The study suggests that without mutual cooperation, it will not be possible to achieve sustainable development goals and, therefore, perceived greenwashing will continue to a large extent. Hence, businesses worldwide should firmly and logically watch all their sustainable business strategies.

Introduction

Organizations, corporations, governments, and communities, have been overshooting the resources of the earth every year since the 1970s (Kirchherr et al., 2017). More resources are being used than the earth can regenerate (Jaeger-Erben et al., 2021; Roberts, 2018; Shen et al., 2019; and Szabo and Webster, 2021). Besides the unusual year of 2020, the most recent overshoot day was on July 29, 2019. After that date, the resources we use, that the earth cannot replenish in a year can be challenging for humankind in the long term (Lyon and Maxwell, 2011; Pacurariu et al., 2021; Szabo and Webster, 2021; and Zych et al., 2021). It is important and critical for all of us to ask the research question - How can organizations and governments play a significant role in decreasing environmental issues and global challenges such as greenwashing, fake green marketing, climate change, counter-biodiversity, and noncircular business models?