Beyond the green façade: building a framework to deter ESG greenwashing
摘要
ESG has emerged as a powerful framework for firms’ non-financial performance. The increase in worldwide adoption of ESG has been accompanied by a growth in greenwashing. Foundational management theories imply that greenwashing may arise from several factors, such as from firms’ economic priorities, goals, stakeholder pressures, and the urgency of those pressures. This paper develops a framework of ESG greenwashing deterrents based on a conceptual approach that evaluates greenwashing through the lens of management theories. The framework elaborates on individual deterrents and highlights the interplay and synergies among them to develop a comprehensive anti-greenwashing strategy. The findings can help develop anti-greenwashing strategies and provide a pragmatic framework for regulators, policymakers, investors, and other stakeholders interested in enhancing the authenticity and genuineness of ESG disclosure.