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To meet the increasing consumer demand for green products and services, governments have increased their regulation of enterprise production behaviors so that enterprises may choose "greenwashing" to obtain the premium of green products at the lowest cost under government regulation. The increase of greenwashing hinders green innovation by enterprises. To quantify this problem and seek solutions to promote enterprises cleaner production and sustainable development, we established a tripartite evolutionary game model for enterprises, consumers, and governments. Using the model, we analyzed the stability of their strategy combinations through simulations and explored the impact of some parameters on the strategy selection. We found that (1) the combination of enterprises adopting true green, consumers buying green products, and weak government regulation was the most environmentally friendly and low-cost strategy solution in the tripartite game system. (2) An increase in government penalties or subsidies to enterprises, as well as a reduction of the extra cost of producing green products, can improve the probability that enterprises will adopt cleaner production. Based on the results, the government should define reasonable subsidies and penalties, guide enterprises to assume their social responsibility, and stimulate consumer green demand. Enterprises should improve their moral qualities, actively engage in green innovation, and increase investment in green product research to guide the game system towards the ideal state. [Display omitted] • A tripartite evolutionary game model considering consumers to analyze greenwashing. • Sensitivity analysis of the parameters related to both external and internal factors. • Propose measures of governments and enterprises to discourage greenwashing. [ABSTRACT FROM AUTHOR]

China is vigorously implementing carbon reduction actions, but greenwashing is a severe obstacle to the realization of the "dual-carbon goal". The central environmental protection inspection (CEPI) policy is a typical vertical environmental regulation (VER) system, which directly affects the environmental protection practices of firms and thus may have an impact on greenwashing. This article uses data from China's listed companies from 2012 to 2021 and the generalized difference-in-differences (DID) method to examine the impact of CEPI policy on greenwashing. The main conclusions are: first, the CEPI policy can significantly mitigate greenwashing, and this conclusion still holds after the endogeneity test and parallel trend test. Second, the CEPI policy can mitigate greenwashing by increasing media attention, improving technological innovation ability, and increasing the degree of competition in the industry. Finally, the heterogeneity analysis shows that stronger regulatory intensity mitigates greenwashing and the CEPI policy is effective in reducing the greenwashing of duality firms. Reducing corporate greenwashing is conducive to cleaner production and thus promotes sustainable economic development. • CEPI policy can mitigate greenwashing. • Media, competition, and innovation effects are the transmission mechanisms. • Wind speed was selected as an instrumental variable. • CEO duality and policy intensity lead to heterogeneity. [ABSTRACT FROM AUTHOR]

Sustainability reporting will soon become a common practice in organizations of all sizes and sectors, driven by escalating pressures and evolving stakeholders' expectations. By analyzing 90 high-quality peer-reviewed articles, this systematic literature review aims to explore the state of research on the Global Reporting Initiative, which is the most widely adopted corporate sustainability reporting tool, and to provide critical thinking on the issues related to the reporting practice. Results are classified in an antecedent-process-outcome framework and interactions between the clusters are provided in a micro-meta-macro setting to develop discussions and insights for future research. The findings suggest that the overall research on the Global Reporting Initiative is well-developed. However, the misalignment of private and public short and long-term interests that emerged from the analysis may be a reason for the existence of unintended disclosure behaviors and quality issues in reporting, such as greenwashing. Accordingly, future research directions are developed to bridge the identified gap. [Display omitted] • First systematic literature review on the Global Reporting Initiative. • Investigation of antecedent-process-outcome clusters. • A disconnect between micro and macro interests may lead to reports' quality issues. • Interconnections for future research are identified in a micro-meta-macro framework. [ABSTRACT FROM AUTHOR]

The objective of this study is to analyze the corporate disclosures related to carbon neutrality in the agri-food sector using several complementary theoretical lenses. A qualitative content analysis of climate disclosures made by 135 food and beverage companies shows numerous gaps in the information they provide about carbon emission monitoring, the setting of net-zero emission targets, carbon footprint reduction, and offsetting practices. Taken together, these seriously undermine the credibility of the data disclosed. However, the proliferation of opaque information, unclear targets, and poorly defined concepts on carbon neutrality cannot be explained solely by greenwashing practices. Interpreting the results using functionalist, critical, and postmodernist perspectives leads to different conclusions about the underlying reasons for the lack of transparency in disclosures and offers a broader perspective on corporate carbon neutralization practices. This study makes important contributions to the literature on corporate carbon disclosure and the ideology of numbers that characterizes sustainability reporting. It also responds to calls from a variety of stakeholders for more scrutiny of corporate climate performance. The practical implications of the study and avenues for future research are also discussed. • Functionalist, critical and postmodernist perspectives to study carbon disclosures. • More than three quarters of agri-food companies disclosed GHG emission data. • Half of agri-food companies disclosed carbon neutrality targets. • GHG emission offsetting actions are often unclear. [ABSTRACT FROM AUTHOR]

Different from developed markets, China capital market is dominated by retail investors. In the digital age, retail investors are increasingly making their voice heard through online channels, which is a new form of shareholder activism in China. This paper examines the association between retail investor activism (RIA) and corporate greenwashing behavior (CGB) using the data of question raised by investors on official investor interactive platforms (IIPs) in China. We discover that the RIA on IIPs is negatively associated with CGB. The mechanism analysis shows that the RIA helps to curb CGB through promoting information transparency and improving internal corporate governance level. We also find that the association between RIA and CGB is strengthened in regions with weaker green finance and environmental regulation, and in industries with weaker product market competition. This indicates that the RIA, a type of private governance, can serve as a substitute to the governance effect of the government and the product market. Further studies show that RIA on unofficial channels such as stock forums or search engines can promote CGB, contrary to the conclusion about IIPs. Our research suggests that strengthening the rights of retail investors through official channels helps to reduce CGB and demonstrates the importance of official channels in the governance role of RIA in emerging markets. [ABSTRACT FROM AUTHOR]

Reducing the "greenwashing" behavior implemented by enterprises through methods such as whitewashing environmental information is a vital part of government environmental governance. The study treats the government digitization implementation as an exogenous shock. It utilizes data from Chinese listed companies between 2016 and 2021 to establish a difference-in-differences model, aiming to discern the causal impact of government digitization on corporate greenwashing behavior. The findings confirm that government digitization advancement substantially curtails corporate greenwashing behavior, exhibiting a comparable inhibitory impact to green finance policies on greenwashing behavior. The test results of the mechanism confirm that government digitization effectively curbs corporate greenwashing by optimizing the regional business environment and enhancing environmental regulatory capabilities. Moreover, in-depth analysis reveals that government digitization has a stronger inhibitory impact on the greening behavior of heavily polluting enterprises, state-owned enterprises, and those facing high environmental uncertainty. The research findings presented in this article contribute to a better understanding of the internal mechanism linking government digitization and corporate greening behavior. They are significant in expanding the micro-environmental governance effects of government digitalization and identifying the factors influencing corporate greening behavior. • Government digitization can curtail corporate greenwashing behavior. • We expand the micro green governance effect of government digitization. • We enrich the literature on the influencing factors of corporate greenwashing. • Opening the black box between digital government and corporate greenwashing. [ABSTRACT FROM AUTHOR]

Due to the contradictions between environmental protection and the contemporary means of producing material-economic growth, companies are increasingly being placed on the Greenwashing List in China. The increasingly severe problem of greenwashing needs to be solved urgently. Government regulation plays a critical role in the prevention of greenwashing. Therefore, we introduce government regulation as a factor in the decision-making process of an enterprise's adoption of greenwashing, thus enriching the literature on the prevention of greenwashing and the validity of government regulations for greenwashing. Centered on heterogeneity, this paper divides enterprises into two types, i.e., dominant and inferior enterprises. In terms of game modeling, this study builds two evolutionary models that are influenced by a government punishment mechanism and tax subsidy mechanism for greenwashing and green innovation strategies and analyzes the evolutionarily stable strategy (ESS) of the models and the evolutionary process of dominant and inferior enterprises. This study found that the government punishment mechanism has an excellent inhibitory effect on the greenwashing practices of both dominant and inferior enterprises. However, the government tax subsidy mechanism is not able to suppress the greenwashing practices of inferior enterprises. In addition, the heterogeneities difference may determine whether green innovation strategies can be diffused and the speed of diffusion. As illustrated above, these results provide proposals for reducing the rate of greenwashing behaviors and for improving the effectiveness of the government regulation of companies' greenwashing behaviors. [ABSTRACT FROM AUTHOR]

To encourage enterprises to take green innovation, the Chinese government has been promoting the development of green finance. However, it has brought about the risk of "greenwashing". This article analyzes "greenwashing" from the perspective of government intervention, focusing on the stakeholder theory and institutional theory that influence the decision-making of participants in green finance, constructing a three-party evolutionary game model for enterprises, green financial institutions, and local governments. By comparing the stable strategy changes before and after the introduction of blockchain technology, the mechanism of blockchain in addressing the "greenwashing" risk in green finance is discussed. The study shows that: first, government regulation plays a crucial role in stimulating enterprises to engage in green innovation and encouraging green financial institutions to provide financial services; Second, before the application of blockchain technology, low-intensity regulation cannot curb the "greenwashing" of enterprises and fails to stimulate them to engage in green innovation. However, after applying blockchain technology, even under low-intensity regulation, enterprises will actively engage in green innovation under the reputation mechanism constructed in the architecture of a consortium chain. This work provides a theoretical framework and guidance for subsequent scholars to conduct quantitative research on the resolution of "greenwashing" in green finance from a government perspective using blockchain. [Display omitted] • Blockchain's role in solving "greenwashing" via institutional and stakeholder theory. • Quantitative research on blockchain and green finance using evolutionary game theory. • Discussed government role in China's mandatory green finance policy context. [ABSTRACT FROM AUTHOR]

Abstract This study developed a model linking perceived greenwashing, green trust, intention to revisit, intention to participate, and intention to spread negative word of mouth, based on Attribution Theory and Trust-Based Marketing Theory. A self-report survey utilizing two real green hotel practice scenarios (towel reuse vs. energy saving sign) was initiated. Results suggest that perceived greenwashing had a significant negative influence on green trust, which in turn was positively associated with revisit intention and intention to participate in the green practice and negatively associated with negative word of mouth. Moreover, prior experience with green hotel was found to moderate the relationship between green trust and the three behavioral intentions such that the relationships are weaker for consumers with prior experience than for those without. However, the moderation only worked in the towel reuse scenario. Numerous implications for marketers and hotel operators are suggested. Graphical abstract Image 1 Highlights • Greenwashing has a significant negative effect on green trust in hotels. • Green trust is positively related to revisit intention and intention to participate. • Green trust is negatively related to negative word of mouth intention. • Prior experience moderates the relationship between green trust and behavioral intentions. • The moderation effect only exists in the towel reuse scenario. [ABSTRACT FROM AUTHOR]

With consumers’ increasing awareness of environmental problems, green marketing is becoming an important approach for firms to gain a competitive advantage. However, green marketing decoupled from substantive action tends to be perceived as greenwashing by consumers. Compared to a large body of green marketing research, little work has focused on consumers’ greenwashing perceptions and its associated consequences. Thus, based on the attitude-behaviour-context theory, this study explored whether and how consumers’ greenwashing perceptions influence their green purchasing intentions by integrating the mediating role of green word-of-mouth (WOM) and the moderating role of green concern. Using a questionnaire survey of 553 consumers of batteries in China, the results demonstrate that consumers’ greenwashing perceptions not only have a direct negative impact on green purchasing intentions, but also have indirect negative effects via green WOM. Further, green concern strengthens the negative relationship between greenwashing perceptions and green purchasing intentions. Hence, this study suggests that firms should promote substantive environmental initiatives rather than greenwashing to ensure consumers and increase sales. [ABSTRACT FROM AUTHOR]

This study explores how the concept of greenwashing has evolved on social media and identifies the most dominant themes and stakeholders shaping these debates. Drawing on the extant literature on greenwashing and stakeholder theory, an in-depth empirical analysis was conducted on how greenwashing debates unfolded during 2006–2022 on the Twitter (now 'X') platform. The analysis is based on 496,276 unique tweets, which provide a detailed account of the main themes and stakeholders involved in online greenwashing debates. The findings indicate that greenwashing debates on social media are dominated by a limited number of themes, sectors, companies, and stakeholders. Over the last 10 years, three companies have consistently been in the top-10 list of tweets addressing greenwashing. Likewise, greenwashing debates on social media are often propagated by small groups of individuals, non-governmental organisations, and media outlets. This study provides new insights into the issues and stakeholders dominating greenwashing debates on social media and highlights the dynamic interplay between the accusers, accused, accomplices, and allies involved in these discussions. • Empirical analysis identifies key stakeholders and themes in greenwashing debates on social media (Twitter) from 2006 to 2022. • We highlight the importance of interplay between online debate accusers, accused, accomplices, and allies. • Greenwashing debates have historically been centred around few companies and sectors. • Greenwashing debates on Twitter are dominated by a relatively narrow network of stakeholders. [ABSTRACT FROM AUTHOR]

Eco-champions in eco-communities offer valuable lessons for mainstream societies to solve the triple-bottom-line (TBL) challenge for a sustainable ecosystem, society and economy. Eco-communities are self-sufficient on most TBL-processes, which makes them a microcosm to study eco-champions in. Eco-champions were studied as key informants and lead-users for their eco-innovative TBL-solutions. This study collected data through ethnographies, interviews, surveys, and secondary data from 28 eco-communities as a multiple case study. The eco-communities are assessed on the regional circular economy RCE framework to find if and how all TBL-processes operate within regional and planetary boundaries. Findings are that some eco-communities solved the TBL-challenge, and that this pivots around the lifestyle of eco-champions. Thirteen TBL-solutions were identified that relate to lifestyle aspects of living space, food, leisure and work. These solutions are common in eco-communities, but are largely absent in mainstream-society. This is arguably because sustainable transitions require an eco-innovation network. The network is understood as a helix-model, specifically the eco-quintuple helix model eco-5HM, which describes the collaboration between the natural ecosystem, civil society, economy, education and governance. Initiating such networks in mainstream societies could set a sustainable transition towards TBL-solutions. This study therefore recommends five propositions that may initiate eco-innovation networks in mainstream societies. The propositions are about (1) understanding, awareness and care; (2) greenwashing issues; (3) trust and sharing; (4) nature-based solutions, and; (5) reduced transport needs. The TBL-solutions and propositions are radically different from current initiatives and policymaking that target sustainability, and deserve more consideration as a viable solution to the TBL-challenge. [ABSTRACT FROM AUTHOR]

This paper moves from the relevance that greenwashing has assumed in recent years and aims to investigate whether the environmental claims made by companies truly reflect their actions. Specifically, it analyzes the relationship between environmental claims and strategic intentionality toward environmental sustainability, proxied by the use and weight of incentives linked to environmental targets in executive compensation plans. By adopting this approach, the study offers a more nuanced perspective on greenwashing, addressing the limitations of the prevalent performance-based view. Based on the analysis of the companies listed on the FTSE Italia All-share index 2021, the paper highlights that companies that draft sustainability plans and declare carbon neutrality goals tend to include environmental targets in their executive compensation plans more frequently and with greater weights compared to other companies. Conversely, merely reporting environmental performance in sustainability (or integrated) reports is not associated with the use of environmental targets in executive compensation plans, suggesting the potential existence of greenwashing practices. The study emphasizes the relevance of considering the executive compensation structure when examining potential signs of greenwashing. It also provides evidence of the need for standardized and transparent corporate compensation disclosure as a significant implication. [Display omitted] • Greenwashing is measured comparing corporate intentionality and environmental claims. • Intentionality is proxied by executive compensation linked to environmental targets. • The diffusion of environmental targets in executive compensation is still limited. • Sustainability plans and carbon neutrality goals signal corporate intentionality. • Nonfinancial reporting alone is not associated with corporate intentionality. [ABSTRACT FROM AUTHOR]

There are many speculations, and some empirical indications in recent literature, that manufacturing firms are particularly prone to greenwashing, a practice by which such firms make misleading claims regarding their environmental performance or that of their products. Simultaneously, very recent evidence suggests that the representative investor has developed a preference for ESG (Environmental, Social, Governance) investments, a so-called "warm-glow" preference. The purpose of this paper is to provide a theoretical explanation why the preference for warm-glow investing may disappear if investors perceive firms in a sector to be greenwashing. We hypothesize that given the ubiquitous contemporary focus on greenwashing, rational investors will factor this greenwashing into their investment decisions. To test this, we investigate patterns of association of ESG scores, and both operating and stock performance for 3,245 listed firms, over a period of two decades, comparing the manufacturing and services sectors in the United States, Europe, and major Asian markets. We find that warm-glow investment is present within the services sector across all regions, but in the manufacturing sector we find noticeable regional differences. In particular, we find ESG-performance patterns for manufacturing firms in the United States that we consider consistent with perceptions of greenwashing. The contribution of this paper is to provide a nuanced perspective on how investors preferences change in relation to industry perceptions. The novelty in our study is two-fold: on the one hand, bringing the problem of greenwashing to the emergent literature on warm-glow investing; on the other, introducing warm-glow investing to the emergent literature on greenwashing. [Display omitted] • We theorize industry differences in ESG impact on firm performance. • The absence of warm-glow investing is attributed to perceived greenwashing. • We discuss implications of perceived greenwashing for manufacturing firms. • Investors exhibit a warm-glow preference within the services sector only. [ABSTRACT FROM AUTHOR]

Voluntary environmental certifications can be considered as firms’ strategic responses to institutional market and non-market pressures to reduce the impact of business activities on natural environment, and also as a means to legitimate the firm in the eyes of the society and the stakeholders in general, by fitting environmental behaviour to competitive dynamics and strategic choices. Among these certifications, the ISO 14001 is considered as the most widespread environmental management system (EMS) certification. Nevertheless, ISO 14001 cannot disguise the fact that these certifications could be used as a symbolic environmental commitment. In our research, we examine the potential existence of symbolic corporate environmental certification phenomenon, as well as its key antecedents and consequences on firm performance. The proposed hypotheses are tested through a logistic regression and a multiple linear regression on a sample of 157 firms that belong to the Spanish metal production and transformation industry with 100 or more employees. As a result, we found four unexplored antecedents of symbolic corporate environmental certification. While industry technological dynamism and lead cost competitive strategy are negatively related to symbolic corporate environmental certification, certification maturity and product differentiation competitive strategy are positively linked. In addition, contrary to our expectations, the relationship between symbolic corporate certification and firm performance, although present, is not statistically significant. In sum, our research contributes to shed light to the scarcely explored phenomenon of Symbolic Corporate Environmental Certification highlighting its importance in terms of industrial analysis, competitive strategy and timing of adoption, as well as its consequences on firm performance. [ABSTRACT FROM AUTHOR]

Prior research has shown mixed results for the relationship between corporate social responsibility (CSR) and corporate financial performance. Call for investigations on mediators and moderators have been put on notice to provide further explanations of previous mixed findings. This study responds to the calls for research by investigating the mediation effect of CSR outcomes, on the relationship between CSR governance and financial performance. We extract CSR governance and outcomes data from the Bloomberg environmental, social and governance (ESG) database and financial performance data from the COMPUSTAT database. Using a sample of 1980 firm-year observations from the top 500 Green companies in the United States for the years 2009 through 2013, we find that CSR outcomes mediate the relationships between CSR governance and financial performance. The results suggest that whether companies implement CSR governance successfully to generate good CSR outcomes plays an important role influencing companies’ financial performance. The results of our study contribute to the CSR literature by providing an explanation of the mediation effects of actual CSR outcomes to the previous heterogeneous findings on CSR-financial return relationships. [ABSTRACT FROM AUTHOR]

Buying firms are increasingly confronted with compliance scandals in their upstream supply chain, for which they are held accountable by their stakeholders. Purely symbolic practices, typically referred to as greenwashing, as well as substantive practices, such as green supplier championing, are thus receiving widespread attention in business practices and academia alike. In this study, we reveal the impact of two opposing leadership dimensions following the concepts of ethical and transactional leadership as antecedents for green supplier championing and greenwashing. We particularly address whether these antecedents have a complementary or a counterproductive effect on green supplier championing and greenwashing. Furthermore, we investigate the complementary impact of incentives and the two leadership styles on achieving sustainability behavior. The resulting model is tested using a path analysis based on a data set of 118 firms located in Germany. We find support for the positive impact of ethical leadership on green supplier championing but also a non-significant negative impact on greenwashing. Greenwashing is significantly impacted by leadership styles reflecting obedience to authority, and further moderated by ethical incentives. Interestingly, ethical incentives do not moderate the impact of ethical leadership on green supplier championing. Finally, we discuss implications for theory and business practice. [ABSTRACT FROM AUTHOR]

Greenwashing refers to the strategies adopted by some manufacturers to convey environmentally friendly production methods using claims, green-coloured packaging, and nature-evoking images without reflecting an actual environmental commitment. This phenomenon constitutes a threat to the development of an environmentally and economically sustainable market. Evaluating the impacts of these practices on the purchase behaviour of food consumers is crucial to provide manufacturers, retailers, and policymakers with meaningful guidance. This study aims to analyse the effect of the green-coloured packaging of two chocolate bars on consumers' choices. We implemented an online choice experiment with 737 Italian consumers following a between-subject approach. In the control treatment, we used the original packaging of both chocolate bars, whereas, in the other two treatments, we coloured the packaging of one chocolate bar green and retained the other's original colour. We estimated how the market shares changed when the packaging was greenwashed and segmented our sample according to respondents' attitudinal traits. Our findings demonstrate that greenwashing food products can potentially increase their market share compared to ordinary food, thus supporting the concerns of consumer organisations. However, the present study was inconclusive in identifying a profile of consumers who are most likely to be taken in by greenwashing. In the conclusion, we provide practical implications for policymakers, industry, and retailers for counteracting greenwashing. • Greenwashing is a threat to the development of a sustainable market. • Executional greenwashing uses nature-evoking elements to deceive consumers. • We analyse the effect of green-coloured packaging on consumer choices. • We implement a choice experiment to estimate the market share of greenwashed food. • Green packaging can potentially increase the market share of greenwashed food. [ABSTRACT FROM AUTHOR]

While the literature has notably focused on the meanings, conceptualizations, causes, consequences and solutions to greenwashing, we propose a counterintuitive perspective to fill a gap by considering whether and how greenwashing can be leveraged to transform greenwashers into green(er) performers. To address this issue, we overview the literature and use conceptual reasoning to develop four mechanisms by which greenwashers may be pushed toward more environmentally friendly trajectories that would not otherwise have been considered: (1) greenwashing raises awareness and normalizes greenness; (2) a greenwashing faux pas is instrumentalized to hold companies accountable by triggering an irreversible "ratchet effect" (enforcing consistency between discourse and actions without allowing a step backward); (3) greenwashing as an aspirational green talk that can constitute an important resource to inspire and drive change; and (4) the management of greenwashing by regulators allows them to advance their sustainability agenda, notably because of enforcement spillovers. A better understanding of these mechanisms can transform the way greenwashing is managed and help addressing environmental challenges. [Display omitted] • Greenwashing can be leveraged to transform greenwashers into green performers. • Greenwashing can raise awareness and normalize greenness. • Greenwashing can help to achieve consistency between firms' discourse and actions. • Greenwashing as an aspirational green talk can inspire and drive change. • Regulators can exploit enforcement spillovers to advance their sustainability agenda. [ABSTRACT FROM AUTHOR]

The Circular Economy Rebound (CER) effect can compromise the capability of a Circular Economy (CE) to achieve its intended sustainability benefits. The CER occurrence may potentially lead firms engaged in circular strategies to overstate their environmental performance, indulge in greenwashing, and undermine their economic prosperity and sustainability. Nevertheless, the scientific literature falls short in suggesting how CER should be managed at the microeconomic level not to jeopardise the effectiveness of the circular transition. Thus, this paper aims to investigate how firms may undertake to manage CER. Through an in-depth literature review on CER and an exploratory case study developed through the Contingency Theory lenses, a theoretical characterisation of the CER phenomenon was advanced and four guidelines that firms may adopt to manage it were devised. The CER management guidelines recommend courses of action to better balance the trade-off between economic and environmental performance and achieve sustainability through circularity. Furthermore, they propose a tool – the Displacement-Profitability matrix – to guide managers in pursuing profitable and environmental-friendly CER management. The results contribute to the CE and Operations & Supply Chain Management research streams and attempt to tackle the lack of theoretical guidance that the CE field suffers from. • CER is an unintended outcome of circular OSCM strategies. • CER induces a misfit between contingencies and OSCM organisational factors. • CER evaluation should relate to the Value Chain. • CER should be considered a Circular Economy risk and managed accordingly. • Managing CER may lead to profitable and environmental-friendly product displacement. [ABSTRACT FROM AUTHOR]

Voluntary corporate environmental disclosure has increased significantly in the last decade. However, the increase in environmental disclosure has also been accompanied by the social questioning of its veracity. Previous studies have mainly focused on the determinant factors behind corporate decisions to disclose environmental data, with only limited consideration of both carbon performance and the veracity of the information disclosed. Based on an international sample of firms from 12 countries, this paper analyzes the impact of regulative pressures related to climate change on the likelihood of companies engaging in greenwashing. The results show that the number of regulations related to climate change negatively influences the propensity of firms to engage in greenwashing. Furthermore, firms in countries with stringent climate-related regulations are less likely to participate in greenwashing practices. This paper adds to the existing literature concerning greenwashing by demonstrating that institutional theory can deliver further insights into the explanation of corporate greenwashing behavior. This is the first study to incorporate international climate-related regulations into the analysis of corporate greenwashing. It also provides a new method for identifying greenwashing firms, based on their carbon performance and disclosure. • Countries' climate-related laws negatively influence corporate greenwashing. • Stricter climate-related regulations reduce greenwashing practices of firms. • The study provides a new method for the identification of greenwashing firms. [ABSTRACT FROM AUTHOR]

The importance of internalization and employee involvement in the greening of organizations is well-established; however, experiences of environmental certification processes in small-scale companies have largely been overlooked. The aim of this study was to examine the experiences of environmental certification in small-scale companies, and how certification may drive green change in these contexts. The study employed a qualitative approach and thematic analysis. Twenty-eight informants in seven small-scale companies were interviewed, via focus-group interviews with employees and leaders, and in individual interviews with leaders. The main theme that was identified from the reflexive thematic analysis was that certification gave rise to a back-and-forth process between drivers and hindrances, resulting in conflicting emotions and cognitive dissonance—which we denoted certification dissonance. Findings indicate that employees experienced conflicts between their own environmental values and the requirements imposed by the certification scheme. Four main categories of certification dissonance were identified: 1) Company characteristics , 2) the company's relationship with the customers/market , 3) characteristics of the certification scheme, and 4) emotional reactions. The participants struggled to choose between alternatives in different shades of green in what we denoted the 'eco grey zone'. Systems theory and cognitive dissonance theory provided a theoretical framework for analysis. Based on our findings, we propose a new process model of certification dissonance outcomes. This model illustrates how employees and managers feel trapped within categorical thinking, and experience dissonance between the poles of 'what is truly green and sustainable' and 'being certified'. This study may be of relevance to managers and stakeholders working on environmental sustainability. • Provides a systems perspective to analyse drivers of and hindrances to environmental certification. • Introduces certification dissonance to describe contradictory feelings between values and certification requirements. • Explains how certification schemes may lead to greening or greenwashing. • Proposes a process model of certification dissonance outcomes. [ABSTRACT FROM AUTHOR]

Despite the significant attention devoted to the impact of corporate greening strategies on firm performance, research has so far focused on established firms, leaving the situation in new firms unclear. In this study, it is hypothesised that the impact of greening strategies on the performance of new firms depends on the type of strategy, and that the firm's age positively moderates this impact. Using a cross-sectoral dataset of 11,039 new firms from 36 countries, binary and ordinal logistic regressions were estimated for different start-up phases. The results indicate that new firms benefit from substantive greening strategies but, contrary to expectations, not from symbolic greening strategies. The performance of new firms in their later start-up phases was even found to be harmed if they adopt symbolic strategies but do not reinforce them with substantive actions (green-washing). No impact, or only a weakly positive impact was found for firms adopting both substantive and symbolic greening strategies (green-highlighting) or only substantive ones (brown-washing). Furthermore, the interaction analyses did not reveal any moderating effects of firm age, but additional investigation shows that the impacts of greening strategies do differ between age groups. Finally, robustness tests reveal that the relationship between substantive greening strategies and the performance of new firms is not linear but decreases with increasing environmental efforts. • Substantive greening strategies pay off for new firms aged up to 10 years. • This positive link is not linear but weakens with higher environmental efforts. • Symbolic greening and brown-washing are not related to the performance of new firms. • Green-washing may backfire for firms in their later start-up phases. • The impact of greening strategies differs between groups of different firm age. [ABSTRACT FROM AUTHOR]