Can the consumer perception of corporate social responsibility be saved? An examination into the effects of corporate greenwashing on the consumer and financial market

Abstract

Purpose

The purpose of this paper is to examine the influence that the occurrence of greenwashing has on the consumer perception of corporate social responsibility (CSR).

Design/methodology/approach

This paper observed the market indication that a consistent undermining of authentic commitment to CSR taints consumer perception. Investigating how the motivations behind greenwashing contribute to the presentation of CSR was the first means of examining the market forces. Consumer orientation was used as a guiding principle to consider the short- and long-term perspective of a greenwasher.

Findings

Individual instances of greenwashing contribute to a collective deterioration of marketplace trust in the promises of CSR. The negative influence on CSR is not isolated to the greenwashing perpetrator but casts a wider effect. The consequences of greenwashing are not isolated but widely dispersed.

Originality/value

Whilst much of the literature focuses on the stigmatisation of individual firms, it is crucial to note how marketplace trust is eroded. In addition, the perception of CSR-related regulations is for example influenced but rarely recognised as a consequence of greenwashing behaviour.

Citation

Teichmann, F.M.J., Wittmann, C., Boticiu, S.R. and Sergi, B.S.S. (2024), "Can the consumer perception of corporate social responsibility be saved? An examination into the effects of corporate greenwashing on the consumer and financial market", Journal of Financial Crime, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFC-11-2023-0303