THE GREEN ILLUSION: “A HOLISTIC ANALYSIS OF GREENWASHING DYNAMICS AND ITS CONSEQUENCES
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2023-07-18
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en
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This research examined the dynamic drivers and consequences of greenwashing in an external market, utilising a System Dynamics (SD) methodology, expert interviews, and literature review. Companies often engage in greenwashing due to consumer and investor demand for green legitimacy, which can lead to market distortions and exacerbate climate change. The study found that greenwashing decreases over time as transparency and information verification increase. Government regulations, such as the Corporate Sustainable Reporting Directive (CSRD), were deemed essential in reducing greenwashing. The research offers a comprehensive perspective on the causes and effects of greenwashing, enhancing our understanding of the interplay between Environmental, Social, and Governance (ESG) performance, financial performance, and greenwashing. Despite limitations relating to SME generalisability and predictive power, the findings provide insights for policymakers and companies to foster sustainable practices and reduce greenwashing.
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Faculteit der Managementwetenschappen