Global Journal of Management and Business Research, G: Interdisciplinary, Volume 23 Issue 1

Fig. 5: De Freitas Netto, S.V., Sobral, M.F.F., Ribeiro, A.R.B. et al. Concepts and forms of greenwashing: a systematic review. Environ Sci Eur 32, 19 (2020). https://doi.org/10.1186/s12302-020-0300-3 VII. A void G reenwashing (CONSUMER) In order to support genuine corporations who have a good initiative to support all the three parties we need to identify how actually some corporations use greenwashing for selfish purposes. Given below are types through which corperates use greenwashing³³ 1. Unspecified - In this type, corporates do not include specific details or units of measurements, for eg- advertising made with organic cotton, which in reality it is 70 percentage of organic cotton. 2. Illegitimate Claims - these as the claims which are either old and still displayed or advertised by the corporate or false claims or certifications from fake organizations. 3. Product Alteration - this includes when corporates compare their products sustainability to competitors product sustainability, but the problem is created when the corporate compares it's products with competitors different types of product which may not have been focused on by the other corporate in terms of sustainability. 4. Misleading Visuals - often corporations color their packaging green or include images of trees and flowers to imply that their products are eco-friendly, which may not be true in every case. VIII. I ncentives by G overnment The companies act 2013 made history making India the first country in the world to mandate every company have a net worth of at least rupees 5 billion, sales of rupees 10 billion or profit before tax of rupees 50 million during any of the three previous financial years (financial year in India starts from 1st April to 31st march) to constitute a CSR committee of the board, develop a CSR policy and plan for CSR expenditures. In China, 2006 company law provides that while doing business, a company shall comply with laws and administrative regulations, conform to social morality and business ethics, act in good faith, subject itself to the government and public supervision, and undertake social responsibility. In 2007, similarly Indonesia stepped out and amended its corporate statute and added that companies having its business activities in the field of and/or related to natural resources shall be obliged to implement social and environmental. In the case of China and Indonesia, their governments have set CSR legislations more in the sense of business ethics rather than direct CSR mandate expenditure like India, but still their legislations on the topic of CSR show that more national governments are focusing on CSR in recent years. A mandate by a government are requirements for corporations which need to be fulfilled, rather a subsidy is a sort of motivation by the government to drift in a certain path. If we get to the definition of subsidy "money³ ⁴ given as part of the cost of something, to help or encourage it to happen". According to Duan et al³ ⁵ , there are many factors which may result in positive correlation between subsidies and firm's market power. This correlation can be shown in many ways. 1. Firstly, as per khurshid³ ⁶ , increase in subsidies for a firm leads to unfair competition in a positive sense as increase of subsidies results in reduction of the firm's costs and increase of working capital. 2. Secondly, Feldman and Kelley³ ⁷ believe that secured loans and funding from financial institutions and banks are indirectly positively affected by subsidies. 3. Thirdly, according to aghion and Hewitt and klette³ ⁸ and griliches, subsidies have a positive effect on a firm's innovation, and following this, Hannu and Jaana state that "innovations lead to improved profitability". From the above we can understand how subsidies help firms in market power and profitability. But how does subsidies affect CSR activities of a firm? According to Duan et al³ ⁵ , "according to one perspective, subsidies represent a tool to control environmental externalities which pave the way for csr". Li et al³ ⁹ , and khurshid et al say that subsideration 51 Global Journal of Management and Business Research Volume XXIII Issue I Version I Year 2023 ( )G © 2023 Global Journals Golden Win-Win Situation Created by CSR