Introdução
In the corporate sphere, there is a growing demand for detailed information about companies' performance in environmental, social, and governance (ESG) matters (Arvidsson & Dumay, 2022). However, a potential threat to this trend is the discrepancy that may arise between the disclosure of sustainable actions and their actual implementation. This suggests a misalignment between companies’ communication strategies and their real practices—a phenomenon referred to as greenwashing.
Problema de Pesquisa e Objetivo
This study explores whether corporate governance mechanisms influence greenwashing practices in the Brazilian context, recognizing greenwashing as a consequence of agency problems.
Fundamentação Teórica
According to Bernini and La Rosa (2024), greenwashing can be characterized as a management tool to promote the interests of managers (agents) at the expense of shareholders (principals) and, in this case, also at the expense of other social actors. Governance mechanisms, grounded in the principles of Agency Theory, play a crucial role in mitigating greenwashing practices, as argued by Yu et al. (2020).
Metodologia
The sample consisted of 224 observations from 71 Brazilian companies, covering the years 2018 to 2021 (4 years). The "ESG Controversies" score provided by Refinitiv® Eikon was used to measure the level of greenwashing practices. Also, this study employed regression analysis. Separate models were estimated, each considering the independent variables individually, in addition to a full model that includes all variables. The analysis was conducted with the support of STATA software.
Análise e Discussão dos Resultados
The analysis reveals that larger boards, a higher proportion of independent directors, and the existence of sustainability committees are positively associated with greenwashing among IBRX-100 companies. Conversely, the assurance of sustainability reports exerts a significant negative impact on greenwashing. These results support the assumptions of Agency Theory, illustrating that corporate governance mechanisms play a critical role in shaping greenwashing behavior in Brazilian firms.
Considerações Finais
From a practical standpoint, companies should strategically assess board composition, limit board size to approximately eight members, and ensure the selection of independent directors aligns with governance objectives. Moreover, the mere presence of sustainability committees should not be equated with effectiveness, highlighting the need for deeper evaluations of their function. Finally, stakeholders should look beyond the green curtain and care-fully evaluate whether companies’ sustainability claims reflect real actions, rather than relying on their outward appearance.
Referências
Arvidsson, S., & Dumay, J. (2022). Corporate ESG reporting quantity, quality and performance: Where to now for environmental policy and practice? Business Strategy and the Environment, 31(3), 1091–1110; Bernini, F., & La Rosa, F. (2024). Research in the greenwashing field: concepts, theories, and potential impacts on economic and social value. Journal of Management and Governance, 28(2), 405–444; Yu, E. P., Luu, B. Van, & Chen, C. H. (2020). Greenwashing in environmental, social and governance disclosures. Research in International Business and Finance, 52, 101192.