Work

Fostering environmental integrity via investor-focused communications: Private in-house meeting disclosures and greenwashing behaviors

Year: 2025

Type: article

Abstract: This study explores whether and how mandatory disclosure of private in-house meetings affects corporate environmental behaviors. Employing a difference-in-differences model, we find that regulated firms significantly reduce their greenwashing behaviors in response to the implementation of mandatory disclosure of private in-house meetings. We identify that mandatory disclosure of private in-house meetings decreases greenwashing behaviors by fostering a corporate culture of integrity. Firms with higher information asymmetry before the mandate exhibit a greater reduction in greenwashing behaviors after mandatory disclosure of private in-house meetings. Furthermore, we document that firms reducing greenwashing as a result of this mandatory disclosure policy witness an improvement in their social reputations. Our study offers insightful implications to policymakers and practitioners by shedding light on the significant role of investor-focused communications in mitigating greenwashing behaviors, thereby bolstering firms’ environmental integrity and accountability.

Source: Journal of Economic Behavior & Organization

DOI: 10.1016/j.jebo.2025.106946

Authors: June Cao, Zijie Huang, Ahmad Usman Shahid

Institutions: Curtin University, University of Southampton

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Responsible consumption and production, Climate action

Open Access status: hybrid

Estimated APC paid: $3,180