Not all that glitters is green: empirical evidence from the Eurostoxx600 on stakeholders’ perception of greenwashing

Greenwashing refers to the deceptive practice where a company exaggerates or misrepresents the sustainability of its actions or projects. Given the ambiguity surrounding the methodologies behind conventional ratings, we enquire their robustness through the implementation of an alternative comprehensive measure entailing both internally disclosed and externally generated data. We address a notorious critique in greenwashing research—that the entire voluntary CSR approach inadvertently facilitates the diffusion of greenwashing. We make a unique contribution to the statistical methodology by breaking down the difference between internal and external perception of sustainability through regression analysis. We claim that only when the presence of CSR Committees is coupled with tangible initiatives boosting sustainability, both external and internal stakeholders are found to positively evaluate the sustainable commitment of a company.