GREENWASHING BEHAVIOURS: CAUSES, TAXONOMY AND CONSEQUENCES BASED ON A SYSTEMATIC LITERATURE REVIEW

TLDR

Greenwashing poses a threat in open markets, with rising reports since the Volkswagen scandal and unpredictable behavior of MNCs, SOEs, and private firms expanding market size. The study aims to analyze corporate greenwashing by MNCs in Asian emerging markets and recommend regulatory enforcement to curb such practices. The authors conducted a systematic review of peer‑reviewed articles from Web of Science, ScienceDirect, Springer and Emerald Insight (2000–2020) to analyze greenwashing. MNCs engage in greenwashing soon after entering emerging markets with weak regulation and high opportunity, harming consumers and society even as they benefit existing stakeholders.

Abstract

This study used the systematic review methodology to examine peer-reviewed journal articles published in the Web of Science, ScienceDirect, Springer and Emerald Insight during the 2000–2020 period to analyse greenwashing. In an open market, the behaviours of state-owned enterprises (SOEs), private firms and multinational corporations (MNCs) pose an implicit greenwashing threat. Our focal point is to analyse corporate greenwashing in MNCs in host emerging markets, particularly in Asia, for two reasons. First, reports of greenwashing have increased around the world since Volkswagen was revealed to have falsified automobile emissions data. Second, MNCs play an important role in expanding market size and their behaviour is increasingly unpredictable. The analysis shows that MNCs tend to engage in greenwashing immediately after doing business in host emerging markets characterised by restricted regulations, clear market opportunities and low competitive pressure. When greenwashing occurs, it will harm the interests of not only consumers, but also society as a whole, despite offering significant benefits to existing stakeholders. In this case, the authorities should implement regulations to confront MNCs before attracting them, which should be enforced in practice.