Anatomy of Corporate Pseudo-Social Responsibility Behavior: Identification Mechanism and Preventive Countermeasures of Greenwashing Phenomenon
DOI:
https://doi.org/10.54097/sze0x087Keywords:
Greenwashing; Corporate pseudo-social responsibility behavior; Identification mechanism of greenwashing; Preventive countermeasures.Abstract
"Greenwashing" is a prevalent form of pseudo-corporate social responsibility (CSR), which refers to misrepresenting a company's environmental efforts to mislead consumers and shareholders about the company's actual commitment to sustainable development. Although CSR has been widely recognized, some companies use CSR only for financial gain without implementing real sustainability practices. This paper critically investigates the phenomenon of “greenwashing” by examining its intrinsic motivations, manifestations, and negative impacts on society and the environment. Using Company C as a case study, the paper illustrates how the company employs misleading tactics to create the illusion of environmental responsibility, ultimately undermining consumer trust and jeopardizing broader sustainability efforts. In addition, this study identifies specific mechanisms for detecting “greenwashing,” such as discrepancies between public statements and operational practices, and suggests preventive strategies, including the implementation of stricter regulatory standards, increased transparency requirements, and comprehensive policy reforms. By emphasizing the importance of consumer education and strengthening regulatory frameworks, this study concludes that addressing “greenwashing” is critical to fostering genuine corporate responsibility and promoting sustainable development.
Downloads
References
[1] Blok V. Levinasian Ethics in Business. Encyclopedia of Business and Professional Ethics, 2017, 1–5.
[2] Johnson Z S, Mao H, Lefebvre S, et al. Good guys can finish first: How brand reputation affects extension evaluations. Journal of Consumer Psychology, 2019, 29(4): 565-583.
[3] TerraChoice Environmental Marketing, Inc. The "Six Sins of GreenwashingTM": A Study of Environmental Claims in North American Consumer Markets. TerraChoice Environmental Marketing, Incorporated, 2007.
[4] Das N, Gangopadhyay P, Alam M M, et al. Does greenwashing obstruct sustainable environmental technologies and green financing from promoting environmental sustainability? Analytical evidence from the Indian economy. Sustainable Development, 2024, 32(1): 1069-1080.
[5] Aggarwal P, Kadyan A. Greenwashing: The darker side of CSR. Indian Journal of Applied Research, 2014, 4(3): 61-66.
[6] Lyon T P, Montgomery A W. The means and end of greenwash. Organization & Environment, 2015, 28(2): 223-249.
[7] Delmas M A, Burbano V C. The drivers of greenwashing. California Management Review, 2011, 54(1): 64-87.
[8] Verma M, Bharti U. Combating Greenwashing Tactics and Embracing the Economic Success of Sustainability. VEETHIKA-An International Interdisciplinary Research Journal, 2023, 9(3): 6-12.
[9] Faber G, Sick V. Identifying and Mitigating Greenwashing of Carbon Utilization Products. Global CO2 Initiative, 2022.
[10] Sun H, Bai T, Liu Z. Perceived policy uncertainty and enterprise greenwashing risk. Finance Research Letters, 2024, 69: 106148.
[11] Zhao Y N, Lee C C. The impact of vertical environmental regulation mechanism on greenwashing. Journal of Cleaner Production, 2024, 475: 143637.
[12] Li D, Zhang Z, Gao X. Does artificial intelligence deter greenwashing? Finance Research Letters, 2024, 67: 105954.
[13] Moodaley W, Telukdarie A. Greenwashing, sustainability reporting, and artificial intelligence: A systematic literature review. Sustainability, 2023, 15(2): 1481.
[14] Kudłak R. Greenwashing or Striving to Persist: An Alternative Explanation of a Loose Coupling Between Corporate Environmental Commitments and Outcomes. Journal of Business Ethics, 2024: 1-16.
[15] Zhao X, Huang X, Liu F, et al. Executive power discrepancy and corporate ESG greenwashing. International Review of Financial Analysis, 2024, 96: 103533.
[16] Li T, Shu X, Liao G. Does corporate greenwashing affect investors' decisions? Finance Research Letters, 2024, 67: 105877.
[17] Santos C, Coelho A, Marques A. The greenwashing effects on corporate reputation and brand hate through environmental performance and green perceived risk. Asia-Pacific Journal of Business Administration, 2024, 16(3): 655-676.
[18] International Organization for Standardization. Environmental Labels and Declarations--Self-Declared Environmental Claims (type II Environmental Labelling). International Organization for Standardization, 1999.
[19] Nemes N, Scanlan S J, Smith P, et al. An integrated framework to assess greenwashing. Sustainability, 2022, 14(8): 4431.
[20] Debevoise J. Greenwashing in modern corporate practices: A critical analysis. Environmental Ethics, 2021, 35(2), 345-367.
[21] Carbon Trust. Carbon footprinting: The journey to zero. Retrieved from: https://www.carbontrust.com/resources/carbon-footprinting-guide, 2021. Accessed October 31, 2024.
[22] Chen A, & Bouvain P. The evolving role of data analytics in environmental sustainability. Journal of Cleaner Production, 2020, 253, 120849.
[23] Auld G, Gulbrandsen L H, & McDermott C L. Certification schemes and the governance of land use. Annual Review of Environment and Resources, 2018, 43(1), 187-210.
[24] de Freitas Netto S V, Sobral M F F, Ribeiro A R B, et al. Concepts and forms of greenwashing: A systematic review. Environmental Sciences Europe, 2020, 32: 1-12.
[25] Yang, Z., Nguyen, T. T. H., Nguyen, H. N., Nguyen, T. T. N., & Cao, T. T. (2020). Greenwashing behaviors: Causes, taxonomy, and consequences based on a systematic literature review. Journal of business economics and management, 21(5), 1486-1507.
[26] Pizzetti M, Gatti L, Seele P. Firms talk, suppliers walk: Analyzing the locus of greenwashing in the blame game and introducing ‘vicarious greenwashing.’ Journal of Business Ethics, 2021, 170(1): 21-38.
[27] Stewart B D. Business as Usual: The Limited Influence of Climate Change Disclosure and Fiduciary Duties on the Low Carbon Investment Practices of Canada’s Big 10 Public Pension Funds. Journal of Environmental Law and Practice, 2020, 33, 93-132.
[28] Szabo S, Webster J. Perceived greenwashing: the effects of green marketing on environmental and product perceptions. Journal of Business Ethics, 2021, 171: 719-739.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Highlights in Business, Economics and Management

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.






