Introdução
When companies do not disclose sustainability information ethically, they often engage in greenwashing practices. Gatti et al. (2019) argue that a universal definition of greenwashing does not exist in the literature, as the concept is approached from varying perspectives across different academic fields.
Problema de Pesquisa e Objetivo
Therefore, the research question is: How do corporate governance mechanisms influence greenwashing practices among companies in Latin America? Framed under the agency theory, the purpose of this paper is to investigate whether corporate governance mechanisms impact greenwashing practices within the Latin American context.
Fundamentação Teórica
According to Bernini and La Rosa (2024), the phenomenon of greenwashing can be understood from a corporate governance perspective. According to the authors, based on the principles of Agency Theory, greenwashing functions as a tool used to promote managerial interests at the expense of shareholders, while also causing harm to other stakeholders.
Metodologia
The sample comprises 376 companies across six Latin American countries, totaling 1,870 observations from 2016 to 2023. The corporate governance variables analyzed include board size, board independence, board gender diversity, the presence of a CSR committee, and executive compensation based on ESG performance. We use a multi-method approach that combines multiple linear regression on unbalanced panel data with Necessary Condition Analysis (NCA).
Análise e Discussão dos Resultados
The analysis reveals that larger boards and the presence of CSR committees are positively associated with greenwashing practices. These findings support the assumptions of Agency Theory by demonstrating that corporate governance mechanisms do influence greenwashing behavior in Latin American companies.
Considerações Finais
From a practical perspective, companies should carefully consider the composition of their boards—strategically selecting independent directors and limiting board size to approximately eight members. Additionally, CSR committees should be evaluated not only for their presence but also for their actual effectiveness.
Referências
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. https://doi.org/10.1007/s10997-023-09686-5; Gatti, L., Seele, P., & Rademacher, L. (2019). Grey Zone In—Greenwash Out: A review of greenwashing research and implications for the voluntary-mandatory transition of CSR. International Journal of Corporate Social Responsibility, 4(6), 1-25. https://doi.org/10.1186/s40991-019-0044-9