Environmental pollution, caused by human activities, has become a critical global problem that strains natural resources and public health. Increasing awareness of these crises has encouraged businesses to make green claims, most of which are superficial and result in greenwashing. This practice diminishes transparency, nurtures public distrust, and inhibits sustainable development. The present study deals with the definition, forms, and effects of greenwashing and its most widespread methods. Companies usually use selective disclosure and isolation of behavior to show positive, yet not negative, aspects. This reduces transparency. The study elucidates that informed consumers and investors are the antidotes needed against the injurious effects of greenwashing. Based on real examples and challenges, the study presents practical lessons that policymakers, businesses, and consumers might learn to enhance sustainable development and corporate transparency.

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