The Legal Aspects of Greenwashing and Its Relation Towards Corporate Social Responsibility

Abstract

The development of public awareness towards environmental issues has encouraged companies to implement Corporate Social Responsibility (CSR) as a form of social and environmental accountability. However, the rise of greenwashing a manipulative practice in which companies falsely claim to engage in environmentally friendly activities to build a positive image poses a serious challenge to the ethical implementation of CSR. This study aims to analyze the legal framework of greenwashing practices in Indonesia and examine the corporate social responsibility in preventing and addressing them. The research employs a normative legal method with statutory and conceptual approaches. The findings indicate that although there is no specific regulation governing greenwashing in Indonesia, such practices can be sanctioned under Law No. 8 of 1999 on Consumer Protection and Law No. 32 of 2009 on Environmental Protection and Management. Furthermore, Law No. 40 of 2007 on Limited Liability Companies establishes CSR as a legal obligation rather than a voluntary action. Transparent, accountable, and sustainable CSR implementation serves as an effective preventive measure against greenwashing while strengthening public trust in corporations.