FROM SKEPTICISM TO TRUST: FACTORS THAT MITIGATE GREENWASHING PERCEPTIONS

Abstract

The concept of a green world introduced in 1972 has significantly influenced business practices aimed at environmental protection. Lot of business firms started altering their practices to comply with the concept of green world. The phenomena of greenwashing emerged while firms falsely claimed green practices without making efforts to protect the environment from the adversities of their business operations. This led to consumer skepticism and altered buying decisions. On the other hand, certain firms faced greenwashing perceptions among their customers while the firms were following eco-friendly practices. This study addresses the prevention of greenwashing perceptions among Generation-Z customers residing in urban areas of the country. Utilizing the business websites and customer responses, this research explores the link of Greenwashing Perceptions with Green Information Quality, Environmental Communication, Green Transparency, Brand Credibility and Pro Environmental Behaviour. Cross-sectional survey method has been used in data collection from 323 respondents. Correlation and regression analysis have been made using structural equation modelling for obtaining empirical results. The framework of the study is based on several previous studies conducted on the antecedents of greenwashing perceptions. The study contributes to societal wellbeing and addresses the organizational challenges by suggesting measures to prevent greenwashing perceptions which ultimately support sustainable practices and improve customer trust.