Macro, Meso, and Micro Level Determinants and Consequences of Greenwashing: A Survey of Extant Literature
Abstract
This study aims to systematically summarize and synthesize the literature on the determinants and consequences of greenwashing using a multi‐level analytical framework. This research reviewed 118 articles published in ABS‐ranked journals. Our results revealed that firms experience pressures at multiple levels to engage in greenwashing practices. At the macro level, environmental concerns and institutional pressures are the dominant factors. At the meso level, pressures from media, buyers, suppliers, and competitors remain prominent. At the micro level, companies' intentions to build a green image and their actual environmental performance appear to be the main factors driving greenwashing. In terms of consequences, greenwashing was found to damage companies' reputations and environmental legitimacy (macro level), affect consumers' perceptions, attitudes, and purchasing behaviors regarding their products and services (meso level), and hurt their own financial performance (micro level). The literature on greenwashing mainly relies on relational theories such as legitimacy theory and institutional theory, and instrumental theories such as signaling theory to explain the determinants and consequences of greenwashing. This research is limited to empirical papers published only in the English language in ABS‐ranked journals. This is the first study employing multi‐level analysis to summarize the literature on the determinants and consequences of greenwashing.