Does Societal Trust Reduce Greenwashing? International Evidence

IF 12.5 1区管理学 Q1 BUSINESS

Business Strategy and The Environment Pub Date : 2025-01-29 DOI:10.1002/bse.4126

Md Ismail Haidar

引用次数: 0

Abstract

I investigate the influence of societal trust on greenwashing. Utilizing the ESG controversies score as a proxy for greenwashing, this research finds that firms in high‐trust societies engage in fewer greenwashing activities. The effect is less pronounced for firms in countries with strong formal institutions, consistent with the notion that societal trust works as a substitute for country‐level formal institution. However, the effect is more pronounced for highly visible firms. This study highlights three potential mechanisms through which societal trust reduces greenwashing practices: enhanced firm reputation, improved accounting transparency, and stronger stakeholder engagement. Overall, these findings underscore the significant role of societal trust in mitigating corporate greenwashing and fostering sustainable business practices.

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来源期刊

Business Strategy and The Environment Multiple-

CiteScore

22.50

自引率

19.40%

发文量

336

期刊介绍： Business Strategy and the Environment (BSE) is a leading academic journal focused on business strategies for improving the natural environment. It publishes peer-reviewed research on various topics such as systems and standards, environmental performance, disclosure, eco-innovation, corporate environmental management tools, organizations and management, supply chains, circular economy, governance, green finance, industry sectors, and responses to climate change and other contemporary environmental issues. The journal aims to provide original contributions that enhance the understanding of sustainability in business. Its target audience includes academics, practitioners, business managers, and consultants. However, BSE does not accept papers on corporate social responsibility (CSR), as this topic is covered by its sibling journal Corporate Social Responsibility and Environmental Management. The journal is indexed in several databases and collections such as ABI/INFORM Collection, Agricultural & Environmental Science Database, BIOBASE, Emerald Management Reviews, GeoArchive, Environment Index, GEOBASE, INSPEC, Technology Collection, and Web of Science.