Corporate Social Responsibility Disclosure and Greenwashing in Pakistani SMEs: Evidence from Managers’ Perspectives

Abstract

This study aims to examine managers’ perceptions of CSR disclosures and greenwashing, specifically within SMEs in Pakistan. The research focus is on their practical challenges and limitations. CSR remains an emerging concept in Pakistani SMEs because awareness is limited and misconceptions persist. Although regulatory frameworks exist, weak enforcement and institutional gaps reduce their effectiveness. This study has used a qualitative approach; data were collected through video- and audio-recorded interviews with SME managers selected via snowball sampling. The study focuses on SMEs across Pakistan as the target population. Data were transcribed and analysed using ATLAS. ti 22, applying thematic analysis, coding, and word frequency techniques to identify patterns and insights. The findings indicate low awareness of CSR and widespread misunderstanding of disclosure practices. Weak regulatory enforcement, corruption, lack of expertise, and limited organisational support further hinder CSR adoption. The study recommends strengthening policy enforcement, improving CSR awareness, and building internal expertise to enhance responsible practices among SMEs.