Corporate greenwashing and green management indicators

Abstract

This article provides evidence on greenwashing practices and environment-friendly initiatives of more than 27,000 family and non-family firms across 41 countries. The statistical analysis reveals that family firms tend to engage less in greenwashing and demonstrate a stronger commitment to environment-friendly initiatives compared to their non-family counterparts. However, family control does not necessarily lead to improved business performance when general and green management practices are considered. Nonetheless, family businesses appear better positioned to leverage environment-friendly initiatives for enhanced performance outcomes.

Further analysis indicates that bribery may reduce greenwashing in family firms, particularly in light industries. On the other hand, political connections have minimal influence on greenwashing practices, regardless of whether firms are family- or non-family-controlled.