| Abstract [eng] |
SUMMARY Duty of the Members of the Governing Bodies of a Legal Entity to Act Fairly and Reasonably Towards the Legal Entity: the Case of Eco-Manipulation Martynas Kurmis This master’s thesis examines the duty of a legal entity’s management body members to act honestly and reasonably, with particular focus on violations of this duty in cases of greenwashing. The thesis analyzes how the legal systems of the United States, the United Kingdom, Germany, and Lithuania regulate corporate activities in the environmental sphere and how management body members can be held liable for misleading or wrongful information related to sustainability. In order to provide a comprehensive overview, the thesis examines relevant European Union directives and regulations, emphasizing their importance in preventing greenwashing. It also delves into the ways in which company executives may breach their fiduciary obligations, the harm such breaches can cause to consumers and shareholders, and the legal remedies available to them. Key cases are discussed – Dieselgate (VW) in the United States and Germany, as well as Shell and ExxonMobil in the United Kingdom and United States – to illustrate how different legal systems respond to greenwashing. The research further evaluates how analogous cases would be handled in Lithuanian courts and highlights potential gaps in the legislation. Various countries’ practices are used to demonstrate the possibility of stricter sanctions, administrative prohibitions, or requirements for managers when their decisions lead to greenwashing. Finally, the thesis presents concrete legislative improvement proposals for Lithuania’s legal framework, including the strengthening of liability for management bodies and a clearer definition of greenwashing. It is expected that these recommendations will help reinforce environmental regulation, foster more equitable business practices, and better protect the interests of all stakeholders involved. |
