Project Topic: Green Marketing vs.

Greenwashing: Ethical Challenges, Consumer Trust, and

Regulatory Framework

Internal Continuous Evaluation 2: PROJECT

For
Course Name: Marketing Management
Submitted by:
Name of the Learner: Kavini Makker
PRN: 25010224151
Division/Group: Division C
Semester: II
Batch: 2025-30

Academic Year: 2025-26

Submitted to:
Name of the Evaluator: Prof. Vijay Kumar Pandey

Symbiosis Law School, NOIDA

Symbiosis International (Deemed University)
 DECLARATION
This written submission based on the topic “Green Marketing vs. Greenwashing: Ethical
Challenges, Consumer Trust, and Regulatory Framework”, submitted by the undersigned to
Symbiosis Law School, NOIDA, Symbiosis International (Deemed University), Pune for the
course ‘Law of Contracts’ as part of Internal Continuous Evaluation (ICE 2): Project is my
original work carried out for the course. The research work has not been submitted elsewhere
for award of any degree or any other purpose whatsoever.
The material borrowed from other sources and incorporated in the submission has been duly
acknowledged.
I have also taken due care that the contents of my project are not similar or same as another
learner’s submission for the aforesaid course.
I confirm that my submission or any part of it is not AI-generated content or any form of
plagiarism.
I understand that I could be held responsible and accountable for plagiarism, if any, even if
detected later.
(Signature of the Learner/FULL NAME in Capital Letters)
Date: ______________
Name of the Learner: KAVINI MAKKER
PRN: 25010224151
Division/Group: C
Semester: II
Batch: 2025-30
Programme: BBA LLB Hons.
Symbiosis Law School, NOIDA
Symbiosis International (Deemed University), Pune
 TABLE OF CONTENT

[Link] TOPIC Page Remarks

No.
1 Introduction
2 Theoretical Framework
3 Case Studied
4 Societal Impact and SDG 2030 Alignment
5 Primary Data Collection
6 Interdisciplinary Dimension
7 Analysis and Discussion
8 Conclusion
9 Reference List
 Introduction
Previously in the economy of today’s world, only the product itself was used as a measure by
which businesses would be evaluated in the areas of profit and performance. There is now a
growing need for businesses to evaluate the impact they have on society through social
responsibility; as well as how ethical their businesses are towards people and other forms of
life. The awareness of consumers regarding issues like sustainable consumption, pollution, and
climate change has caused businesses to feel greater amounts of pressure by consumers to show
they are operating their business and selling products in such a way that does not harm our
environment, through their production processes and/or the products they produce.
The shift in consumer awareness has lead to the concept of “green marketing,” which is the
promotion of products that use environmentally friendly materials, produce products
sustainability and show corporate responsibility towards nature. Green marketing consists of
marketing, specifically the way a business designs and promotes its products to create the least
amount of negative environmental impact. Some examples of green marketing include eco-
friendly product packaging; producing products utilizing energy-efficient methods, recycling;
and/or purchasing raw materials from a responsible source.
The Volkswagen "Dieselgate" scandal highlights how they marketed themselves as a "green"
car producer while cheating on their emissions tests. It demonstrates that companies can face
financial penalties, damage to their reputations, and loss of consumer trust when they are seen
as "greenwashing." Companies such as Patagonia have successfully created brand equity by
incorporating sustainability throughout their operations and have used initiatives like "Don't
Buy This Jacket" to encourage consumers to be less wasteful.
This paper will discuss the conflict between real "green" activities and the use of
"greenwashing." It will look at the ethical dilemmas, issues surrounding consumer trust, and
the legislative framework that governs corporations. Examples from both a global and Indian
perspective will be used to demonstrate how businesses can operate ethically while being
profitable and contributing to the UN Sustainable Development Goals, particularly SDG 12
(Responsible Consumption and Production) and SDG 13 (Climate Action).
 Theoretical Framework
Marketing Concepts Applied:
1. The 4Ps of Marketing (Product, Price, Place, Promotion)
o Product: Eco-friendly innovations such as biodegradable packaging or energy-
efficient appliances. For example, Tesla’s electric vehicles represent a product
innovation aligned with sustainability.
o Price: Green products often carry a premium due to higher production costs.
Ethical pricing strategies must balance affordability with sustainability.
o Place: Distribution channels can reinforce green marketing, e.g., using carbon-
neutral logistics or local sourcing.
o Promotion: Campaigns highlighting sustainability must be transparent.
Misleading promotions risk accusations of greenwashing.
2. Consumer Behavior and Trust
o Studies show that millennials and Gen Z consumers are more likely to support
brands with strong sustainability credentials. However, skepticism is rising due
to widespread greenwashing.
o Example: A Nielsen survey found that 66% of global consumers are willing to
pay more for sustainable brands, but trust is fragile when claims are unverified.
3. Brand Equity and Ethical Marketing
• Authentic green marketing enhances brand equity by building long-term trust.
• Case: Patagonia’s Worn Wear program, which promotes repairing rather than replacing
clothing, strengthens consumer loyalty while reducing waste.

Ethical Issue In Green Marketing:

Companies are faced with various ethical dilemmas in order to implement green marketing
practices. The most common dilemma is the tension between profit and environmental
accountability. Companies have a motive of maximizing their profits. However, if they choose
to implement sustainable production practices this can increase the operational costs of their
business. This creates a class of conflicts between short-term profit and long-term
responsibility to the environment. Another dilemma is the balance between being transparent
and convincing to consumers.
The goal of the marketing strategy is to convince the consumer to buy the product. However,
the persuasive nature of marketing should not become the deceptive nature of advertising.
Thus, ethical marketers communicate with transparency and legitimate facts about the product
they are promoting. Finally, short-term profit vs. long-term reputation will also create some
ethical issues in green marketing. Companies that greenwash can generate short-term financial
gains, as the environmentally conscious consumer may choose to purchase their products.
However, if they are exposed for lying about their sustainability claims, they can suffer from
damage to their reputation, loss of customers, and even with lawsuits.
Thus, there are many ethical issues that ethical marketers need to address and be mindful of so
they can maintain their credibility over the long-term.
 Case Studies
1. Volkswagen Dieselgate (Greenwashing)
One extremely notorious example of greenwashing is the Volkswagen emissions
scandal or Dieselgate. In presenting their diesel vehicles as “clean diesel” and
environmentally friendly vehicles, they misled consumers.
Upon further investigation, it became apparent that, in fact, Volkswagen installed
software in the vehicles that manipulated the emissions during the testing. This
software allowed the vehicles to pass emissions without any issues during the
laboratory tests; however, once in the real world, those same vehicles were producing
much higher emissions than would be able to pass the test. Volkswagen was held
liable for billions in fines, lawsuits, and compensation claims as a result of this
scandal, and their company suffered greatly due to being found out to be perpetrating
deceptive marketing of products purported to be environmentally [Link]
(Authentic Green Marketing)
2. Patagonia – Authentic Green Marketing

Patagonia is considered a pioneer in the outdoor apparel industry for their genuine
efforts to promote ecological sustainability. For Instance, the brand emphasizes ethical
sourcing of materials and promotes responsible consumption with an emphasis on
transparency with consumers about their sourcing practices within the supply chain.
Patagonia even has a popular advertising campaign called "Don't Buy That Jacket,"
which encouraged consumers to reduce extra purchases in order to minimize their
impact on the planet. Additionally, instead of promoting excessive purchasing and
creating wasteful consumer cycles, Patagonia has developed the "Worn Wear"
program, which focuses on repairing and reusing items.

Patagonia's commitment to using environmentally friendly practices has helped build

consumer trust and fostered its image as a socially responsible company.

3. Indian Context
Dabur and other organizations in India promote the use of traditional and
environmentally friendly goods through their heritage and natural based product
offerings. To further support this theme, Dabur has introduced numerous
sustainability initiatives that are designed to: (1) use eco-friendly packaging materials,
and (2) reduce the amount of plastic used in their operations.

However, it has also been observed that many other companies in India use the terms
"natural" or "organic" without proper certification, thus creating concerns that they
may be engaging in greenwashing.
 Societal Impact & SDG 2030 Alignment
Green marketing contributes directly to societal well-being by promoting sustainable
consumption and production. Authentic campaigns encourage consumers to make
environmentally responsible choices, thereby reducing ecological footprints.
Greenwashing, however, undermines these efforts by misleading consumers and
slowing progress toward sustainability.
• Consumer Rights: Protecting consumers from misleading claims is essential for ethical
marketing.
• Environmental Impact: Authentic green marketing reduces carbon footprints and
promotes sustainable consumption.
• SDG Links:
• SDG 12: Responsible Consumption and Production.
• SDG 13: Climate Action.
• SDG 16: Peace, Justice, and Strong Institutions (via regulatory enforcement).
PRIMARY DATA COLLECTED ON THE SAME ISSUE
This google form was created keeping in view that people or consumers find it easy and
quick to answer if the questions are not complex to understand and include less economic
jargons. The responses collected are recorded in an excel which is attached along with the
project.
The analysis I could come up with includes:
1. Age Demographic
Most participants in this survey were between the ages of 18 and 21, indicating that college
students and young digital consumers make up a large portion of the population within the
Delhi NCR.
Insight:
Younger consumers form the majority of the target audience for influencer marketing.

2. Social Media Usage

A vast majority of participants claimed to use social media at least a few times a day.
Social Media Behaviour Patterns:
Social media is integrated into everyday life. Social media platforms are responsible for
influencing consumer opinions, trends, and purchasing behaviours.

3. Platform Preference
Here are the top platforms that consumers reported using:
1. Instagram
2. YouTube
3. Snapchat
Interpretation:
Instagram has taken the lead when it comes to influencer marketing.
Many people trust YouTube when reading product reviews.
Younger consumers prefer Snapchat.

4. Following influencers
As many as 70% of participants claim to follow influencers on social media.
The most popular reasons for following influencers on social media include:
Entertainment
Lifestyle inspiration
Finding new products
Influencer culture is entrenched in urban youth culture.

5. The type of influence that respondents follow

The following categories of influencers were the most frequently reported among
respondents:
Fashion / Beauty
Lifestyle
Technology
Fitness
Insight:
Consumers in Delhi NCR are interested in their appearance, upgrading their lifestyle, and
new technology gadgets.

6. Influence on purchasing decision

A large number of participants scored 3 or 4 (0-5 scale) with regards to purchasing decisions
and the amount of influence that an influencer currently has.
What This Means:
Influencers have a moderate amount of influence over a consumer’s purchasing decisions, as
they can still verify any information they receive regarding a product before making their
purchase.

7. Awareness of sponsored content on social media

Most participants saw either #ad or #sponsored
Interpretation:
Consumers are becoming more aware of the advertising techniques marketers use on social
media.

8. The importance of transparency

Most participants rated 4 or 5 (depending on the scale) when asked how important
transparency was to them when following influencers on social media.
The Expectation of Consumers During an Influencer’s Disclosure of a Sponsored Product
Paid Partnerships / Sponsored Promotions / Disclosing the nature of a paid partnership
Brands that Are Transparent with their Customers are more likely to have Customer Loyalty.
9. Trust in Influencers
Trust ratings for Influencers were consistently ranked between 3-4 which means trust in
Influencers to provide product discovery was moderate, however, many consumers were also
not as confident in using an Influencer to drive their decision-making for initiating a
purchase.

10. Purchases made by Consumers Based on Influencers

More than 50% of respondents stated they had made at least one purchase based upon a
product endorsed by An Influencer. The most common product categories were fashion,
beauty items, gadgets, and food brands.

11. Consumer Satisfaction with Products Purchased Based on an Influencer's

Recommendation
The majority of respondents expressed moderate satisfaction level with all of the products
purchased, indicating that Influencer recommendations tend to be effective but not always
accurate.

12. Exaggeration of Product Benefits by Influencers

Majority of respondents suggested that Influencers exaggerate the benefits of products.
Indicating that consumers are becoming more increasingly sceptical of products endorsed by
Influencers.

13. Desire for More Regulation of Influencer Marketing

Most respondents stated they would like to see more regulations for Influencer Marketing, to
protect consumers from misleading advertisements, and ensure transparency.

14. Who is Responsible for Ethical Marketing

Majority of consumers identified all three groups as having part of the ethical responsibility
for Influencer Marketing; Influencers, the Brands, Social Media companies and Regulatory
Agencies.

To summarise, Influencer-marketing is a major factor affecting how people shop in the Delhi
NCR area and especially with younger users of social media. While consumers are growing
to be better-informed and suspicious of marketing, they also want more transparency. While
influencers help consumers find products and discover trends, their confidence in an
influencer's ability to influence their purchasing decision depends on factors like trust and
authenticity, and their experience with the product.
 Interdisciplinary Dimensions

• Legal:
o EU’s Green Claims Directive mandates proof for sustainability claims.
o US FTC’s Green Guides regulate environmental marketing.
o India’s Consumer Protection Act and ASCI guidelines prohibit misleading
advertisements.
• Social:
o Greenwashing erodes consumer trust and fosters skepticism.
o Cultural sensitivity is crucial; campaigns must respect local traditions while
promoting sustainability.
• Business:
o Authentic green marketing enhances long-term profitability.
o Greenwashing risks fines, boycotts, and reputational dam
 Analysis & Discussion
The tension between green marketing and greenwashing reflects broader ethical challenges in
business. Authentic green marketing builds consumer trust, enhances brand equity, and
contributes to sustainability. Greenwashing, by contrast, undermines trust and exposes
companies to regulatory penalties.
• Consumer Trust: Authenticity builds loyalty; greenwashing erodes credibility.
• Profitability vs. Ethics: Ethical marketing may involve higher costs but ensures
sustainable growth.
• Regulatory Role: Strong enforcement is necessary to deter deceptive practices.
• Future Outlook: Integration of technology (blockchain, AI) can verify sustainability
claims and enhance transparency.
The ethical dilemma between green marketing and greenwashing creates problems within the
business community as both concepts represent opposing approaches toward environmental
sustainability. While true green marketing focuses on developing products with an emphasis
on promoting sustainable use of natural resources and increasing long-term consumer
confidence in a particular brand, greenwashing companies use deceptive tactics in their
marketing strategies to capitalize on consumers' concerns over the environment and their desire
to be environmentally friendly, ultimately hindering overall progress toward sustainability. In
addition, the use of misleading claims regarding a company’s environmentally friendly product
may violate consumer rights, thus requiring stricter regulations governing companies engaged
in deceptive marketing practices.
From a business standpoint, businesses must realize that current consumer awareness is
growing at an extremely rapid rate. Using digital media, consumers now have access to vast
amounts of information to confirm or verify the validity of corporate claims.
Because greenwashing may generate short-term profit for companies utilizing this marketing
strategy, they risk damaging their long-term reputation as a company committed to sustainable
practices.
 Conclusion
Green marketing provides businesses with an excellent opportunity to promote and
protect the environment while developing strong relationships with consumers.
Implemented ethically and with integrity, green marketing promotes sustainable
production, responsible consumption and accountability for corporations.
Unfortunately, increasing instances of greenwashing create the potential to undermine
the many positive benefits associated with green marketing. Deceptive claims about
environmentally sound practices can mislead consumers, erode brand credibility and
negatively affect the momentum for achieving sustainable practices.
The company case studies analyzed in this project illustrate that businesses that
implement genuine sustainability practices can establish strong consumer trust and
create long-lasting brand equity. Conversely, businesses that participate in
greenwashing potentially face legal sanctions, harm to their reputations and loss of
consumer confidence.
For this reason, businesses need to understand that ethical marketing is not only a moral
imperative, but also a strategic necessity in today's marketplace. Companies can use
green marketing to achieve both business success and protection of the environment by
emphasizing transparency, accountability and a real commitment to being
environmentally responsible.

Reducing greenwashing and increasing ethical green marketing involves a variety of

approaches:
• The establishment of more robust regulations is required to create an
environment where brands can substantiate their environmental claims based on
scientific research.
• Having third-party certifications will help businesses provide documentation or
certificates for their sustainability claims through an objective source.
• Companies should disclose environmental information by publishing reports on
corporate sustainability and reserves.
• Creating a more well-educated consumer base will help provide consumers with
the tools they need to avoid purchasing from brands who employ greenwashing.
• Corporate responsibility requires that brands consider sustainability as part of
their overall strategy for doing business instead of just as a marketing tool.
 Reference List
• Guerreiro, M., Muhs, C., Neves, M. C., Engel, L., & Cardoso, L. F. (2023). Green
marketing: A case study of the outdoor apparel brand Patagonia. Responsibility and
Sustainability, 8(2), 49–57. [Link]
• Keane, S. R. (2022). “Green” marketing in the apparel industry: The spectrum of
veracity (Honors thesis, Colby College). Colby College Digital Commons.
[Link] ([Link] in
Bing)
• Federal Trade Commission. (2012). Guides for the use of environmental marketing
claims (“Green Guides”). Federal Trade Commission. [Link]
guidance/resources/green-guides ([Link] in Bing)
• European Parliament. (2024). Directive on substantiation and communication of
explicit environmental claims (“Green Claims Directive”). European Commission.
[Link]
and-food-safety/file-green-claims-directive ([Link] in Bing)
• Baker McKenzie. (2025). Green claims guide: Global greenwashing regulations &
guidance for luxury brands. Baker McKenzie Publications.
[Link]
([Link] in Bing)
• Consumer Protection Act, 2019, No. 35 of 2019, India Code (2019). Government of
India. Retrieved from
[Link]
([Link] in Bing)
• Advertising Standards Council of India (ASCI). (2021). Guidelines for advertising of
environmental claims. ASCI Publications. Retrieved from [Link]
• United Nations. (2015). Transforming our world: The 2030 Agenda for Sustainable
Development. United Nations General Assembly. [Link]
• Nielsen. (2015). The sustainability imperative: New insights on consumer
expectations. Nielsen Global Survey of Corporate Social Responsibility and
Sustainability. Retrieved from [Link]
• Hotten, R. (2015, December 10). Volkswagen: The scandal explained. BBC News.
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• Dabur India Ltd. (2022). Sustainability report. Dabur Publications. Retrieved from
[Link]