IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v182y2024ics0148296324002972.html
   My bibliography  Save this article

Does perceived greenwashing promote or inhibit ethical voice? Effects of moral disengagement and perceived competitive pressure

Author

Listed:
  • Xiang, Yilin
  • Chen, Lu
  • Zhang, Zhenya
  • Sun, Xinyu

Abstract

Based on the social cognitive theory of morality and considering employees’ perspectives, we build and test a mediated moderation model in which perceived greenwashing interacts with perceived inter-organizational competitive pressure to affect ethical voice through moral disengagement. We conducted a multisource time-lagged organizational field survey (Study 1) and two vignette-based experiments (Study 2 and 3) to test our hypotheses. Results show that perceived greenwashing negatively (positively) affects ethical voice through moral disengagement under high (low) perceptions of competitive pressure. Studies have indicated that when employees feel that their organizations are under greater competitive pressure, stress may cause them to suppress their objections to greenwashing through moral disengagement. These findings have implications for the social cognitive theory of morality and managers who aim to encourage ethical voice and discourage moral disengagement.

Suggested Citation

  • Xiang, Yilin & Chen, Lu & Zhang, Zhenya & Sun, Xinyu, 2024. "Does perceived greenwashing promote or inhibit ethical voice? Effects of moral disengagement and perceived competitive pressure," Journal of Business Research, Elsevier, vol. 182(C).
  • Handle: RePEc:eee:jbrese:v:182:y:2024:i:c:s0148296324002972
    DOI: 10.1016/j.jbusres.2024.114793
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296324002972
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jbusres.2024.114793?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pascual Berrone & Andrea Fosfuri & Liliana Gelabert, 2017. "Does Greenwashing Pay Off? Understanding the Relationship Between Environmental Actions and Environmental Legitimacy," Journal of Business Ethics, Springer, vol. 144(2), pages 363-379, August.
    2. Gergely Nyilasy & Harsha Gangadharbatla & Angela Paladino, 2014. "Perceived Greenwashing: The Interactive Effects of Green Advertising and Corporate Environmental Performance on Consumer Reactions," Journal of Business Ethics, Springer, vol. 125(4), pages 693-707, December.
    3. Kent Walker & Fang Wan, 2012. "The Harm of Symbolic Actions and Green-Washing: Corporate Actions and Communications on Environmental Performance and Their Financial Implications," Journal of Business Ethics, Springer, vol. 109(2), pages 227-242, August.
    4. Wei Li & Weining Li & Veikko Seppänen & Timo Koivumäki, 2022. "How and when does perceived greenwashing affect employees' job performance? Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1722-1735, September.
    5. Fu, Xiaorong & Pang, Jing & Gursoy, Dogan, 2022. "Effects of online commercial friendships on customer revenge following a service failure," Journal of Business Research, Elsevier, vol. 153(C), pages 102-114.
    6. Christopher Marquis & Michael W. Toffel & Yanhua Zhou, 2016. "Scrutiny, Norms, and Selective Disclosure: A Global Study of Greenwashing," Organization Science, INFORMS, vol. 27(2), pages 483-504, April.
    7. Wei Li & Weining Li & Veikko Seppänen & Timo Koivumäki, 2023. "Effects of greenwashing on financial performance: Moderation through local environmental regulation and media coverage," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 820-841, January.
    8. Jennifer Kish-Gephart & James Detert & Linda Treviño & Vicki Baker & Sean Martin, 2014. "Situational Moral Disengagement: Can the Effects of Self-Interest be Mitigated?," Journal of Business Ethics, Springer, vol. 125(2), pages 267-285, December.
    9. Jordy F. Gosselt & Thomas Rompay & Laura Haske, 2019. "Won’t Get Fooled Again: The Effects of Internal and External CSR ECO-Labeling," Journal of Business Ethics, Springer, vol. 155(2), pages 413-424, March.
    10. Riccardo Torelli & Federica Balluchi & Arianna Lazzini, 2020. "Greenwashing and environmental communication: Effects on stakeholders' perceptions," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 407-421, February.
    11. Li, Yaoqi & Zhang, Chun & Fang, Shujie, 2022. "Can beauty save service failures? The role of recovery employees’ physical attractiveness in the tourism industry," Journal of Business Research, Elsevier, vol. 141(C), pages 100-110.
    12. Eun-Hee Kim & Thomas P. Lyon, 2015. "Greenwash vs. Brownwash: Exaggeration and Undue Modesty in Corporate Sustainability Disclosure," Organization Science, INFORMS, vol. 26(3), pages 705-723, June.
    13. Reed, Kendra & Goolsby, Jerry R. & Johnston, Michelle K., 2016. "Listening in and out: Listening to customers and employees to strengthen an integrated market-oriented system," Journal of Business Research, Elsevier, vol. 69(9), pages 3591-3599.
    14. George I. Kassinis & Adam A. Kay & Giorgos Papagiannakis & Pavlos A. Vlachos, 2022. "Stigma as Moral Insurance: How Stigma Buffers Firms from the Market Consequences of Greenwashing," Journal of Management Studies, Wiley Blackwell, vol. 59(8), pages 2154-2190, December.
    15. Yu, Ellen Pei-yi & Luu, Bac Van & Chen, Catherine Huirong, 2020. "Greenwashing in environmental, social and governance disclosures," Research in International Business and Finance, Elsevier, vol. 52(C).
    16. Jeremy D. Mackey & Lei Huang & Wei He, 2020. "You Abuse and I Criticize: An Ego Depletion and Leader–Member Exchange Examination of Abusive Supervision and Destructive Voice," Journal of Business Ethics, Springer, vol. 164(3), pages 579-591, July.
    17. Yuyan Zheng & Les Graham & Jiing-Lih Farh & Xu Huang, 2021. "The Impact of Authoritarian Leadership on Ethical Voice: A Moderated Mediation Model of Felt Uncertainty and Leader Benevolence," Journal of Business Ethics, Springer, vol. 170(1), pages 133-146, April.
    18. Nishat Babu & Kenneth de Roeck & Nicolas Raineri, 2020. "Hypocritical organizations: Implications for employee social responsibility," Post-Print hal-03796007, HAL.
    19. Jing‐Lin Duanmu & Maoliang Bu & Russell Pittman, 2018. "Does market competition dampen environmental performance? Evidence from China," Strategic Management Journal, Wiley Blackwell, vol. 39(11), pages 3006-3030, November.
    20. Ying Wang & Shufeng Xiao & Run Ren, 2022. "A Moral Cleansing Process: How and When Does Unethical Pro-organizational Behavior Increase Prohibitive and Promotive Voice," Journal of Business Ethics, Springer, vol. 176(1), pages 175-193, February.
    21. Marta Pizzetti & Lucia Gatti & Peter Seele, 2021. "Firms Talk, Suppliers Walk: Analyzing the Locus of Greenwashing in the Blame Game and Introducing ‘Vicarious Greenwashing’," Journal of Business Ethics, Springer, vol. 170(1), pages 21-38, April.
    22. Babu, Nishat & De Roeck, Kenneth & Raineri, Nicolas, 2020. "Hypocritical organizations: Implications for employee social responsibility," Journal of Business Research, Elsevier, vol. 114(C), pages 376-384.
    23. Peixu He & Zhenglong Peng & Hongdan Zhao & Christophe Estay, 2019. "How and When Compulsory Citizenship Behavior Leads to Employee Silence: A Moderated Mediation Model Based on Moral Disengagement and Supervisor–Subordinate Guanxi Views," Post-Print hal-02054246, HAL.
    24. Matthew Valle & K. Michele Kacmar & Suzanne Zivnuska, 2019. "Understanding the Effects of Political Environments on Unethical Behavior in Organizations," Journal of Business Ethics, Springer, vol. 156(1), pages 173-188, April.
    25. Baldi, Francesco & Pandimiglio, Alessandro, 2022. "The role of ESG scoring and greenwashing risk in explaining the yields of green bonds: A conceptual framework and an econometric analysis," Global Finance Journal, Elsevier, vol. 52(C).
    26. Fath, Sean & Kay, Aaron C., 2018. "“If hierarchical, then corrupt”: Exploring people’s tendency to associate hierarchy with corruption in organizations," Organizational Behavior and Human Decision Processes, Elsevier, vol. 149(C), pages 145-164.
    27. Peter Seele & Lucia Gatti, 2017. "Greenwashing Revisited: In Search of a Typology and Accusation‐Based Definition Incorporating Legitimacy Strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 239-252, February.
    28. Peixu He & Zhenglong Peng & Hongdan Zhao & Christophe Estay, 2019. "How and When Compulsory Citizenship Behavior Leads to Employee Silence: A Moderated Mediation Model Based on Moral Disengagement and Supervisor–Subordinate Guanxi Views," Journal of Business Ethics, Springer, vol. 155(1), pages 259-274, March.
    29. Yue Wu & Kaifu Zhang & Jinhong Xie, 2020. "Bad Greenwashing, Good Greenwashing: Corporate Social Responsibility and Information Transparency," Management Science, INFORMS, vol. 66(7), pages 3095-3112, July.
    30. Kwak, Hyokjin & Anderson, Rolph E. & Leigh, Thomas W. & Bonifield, Scott D., 2019. "Impact of salesperson macro-adaptive selling strategy on job performance and satisfaction," Journal of Business Research, Elsevier, vol. 94(C), pages 42-55.
    31. Xingqiang Du & Yingying Chang & Quan Zeng & Yingjie Du & Hongmei Pei, 2016. "Corporate environmental responsibility (CER) weakness, media coverage, and corporate philanthropy: Evidence from China," Asia Pacific Journal of Management, Springer, vol. 33(2), pages 551-581, June.
    32. Ong, Madeline & Mayer, David M. & Tost, Leigh P. & Wellman, Ned, 2018. "When corporate social responsibility motivates employee citizenship behavior: The sensitizing role of task significance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 144(C), pages 44-59.
    33. Sabrina Scheidler & Laura Marie Edinger-Schons & Jelena Spanjol & Jan Wieseke, 2019. "Scrooge Posing as Mother Teresa: How Hypocritical Social Responsibility Strategies Hurt Employees and Firms," Journal of Business Ethics, Springer, vol. 157(2), pages 339-358, June.
    34. Zhang, Dongyang, 2022. "Green financial system regulation shock and greenwashing behaviors: Evidence from Chinese firms," Energy Economics, Elsevier, vol. 111(C).
    35. Szerena Szabo & Jane Webster, 2021. "Perceived Greenwashing: The Effects of Green Marketing on Environmental and Product Perceptions," Journal of Business Ethics, Springer, vol. 171(4), pages 719-739, July.
    36. Sharma, Piyush & Davcik, Nebojsa S. & Pillai, Kishore Gopalakrishna, 2016. "Product innovation as a mediator in the impact of R&D expenditure and brand equity on marketing performance," Journal of Business Research, Elsevier, vol. 69(12), pages 5662-5669.
    37. Zhang, Yun & Zhang, Zhe & Jia, Ming, 2022. "When and Why Perceived Organizational Environmental Support Fails to Work: From a Congruence Perspective," Management and Organization Review, Cambridge University Press, vol. 18(3), pages 519-550, June.
    38. Donia, Magda B.L. & Tetrault Sirsly, Carol-Ann, 2016. "Determinants and consequences of employee attributions of corporate social responsibility as substantive or symbolic," European Management Journal, Elsevier, vol. 34(3), pages 232-242.
    39. Chen Wang & Xiaowei Ma & Hyoungsuk Lee & Zhen Chu, 2021. "Does real estate bubble affect corporate innovation? Evidence from China," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-17, September.
    40. Ahmed Imran Hunjra & Tahar Tayachi & Rashid Mehmood & Anwaar Hussain, 2021. "Does economic risk affect corporate cash holdings?," Journal of Economic and Administrative Sciences, Emerald Group Publishing Limited, vol. 38(3), pages 471-484, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francesca Bernini & Fabio La Rosa, 2024. "Research in the greenwashing field: concepts, theories, and potential impacts on economic and social value," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(2), pages 405-444, June.
    2. Jennifer L. Robertson & A. Wren Montgomery & Timur Ozbilir, 2023. "Employees' response to corporate greenwashing," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4015-4027, November.
    3. Carlos Ignacio Gallo Aguila & María del Pilar Castro Arellano & Marco Antonio Rodríguez Vega & Eliana Maritza Barturen Mondragón & María del Pilar Quezada Castro & Guillermo Alexander Quezada Cast, 2024. "Trends in Scientific Production on Greenwashing based on Scopus (1990-2023)," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 464-471, July.
    4. Divinus Oppong-Tawiah & Jane Webster, 2023. "Corporate Sustainability Communication as ‘Fake News’: Firms’ Greenwashing on Twitter," Sustainability, MDPI, vol. 15(8), pages 1-26, April.
    5. Wei Li & Weining Li & Veikko Seppänen & Timo Koivumäki, 2022. "How and when does perceived greenwashing affect employees' job performance? Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1722-1735, September.
    6. Birindelli, Giuliana & Chiappini, Helen & Jalal, Raja Nabeel-Ud-Din, 2024. "Greenwashing, bank financial performance and the moderating role of gender diversity," Research in International Business and Finance, Elsevier, vol. 69(C).
    7. Wei Li & Weining Li & Veikko Seppänen & Timo Koivumäki, 2023. "Effects of greenwashing on financial performance: Moderation through local environmental regulation and media coverage," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 820-841, January.
    8. Teti, Emanuele & Etro, Leonardo L. & Pausini, Lorenzo, 2024. "Does greenwashing affect Company's stock Price? Evidence from Europe," International Review of Financial Analysis, Elsevier, vol. 93(C).
    9. Pengyu Chen & Abd Alwahed Dagestani, 2023. "Greenwashing behavior and firm value – From the perspective of board characteristics," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2330-2343, September.
    10. Wang, Yuxi & Hu, Fangjia & Wang, Yunyun, 2024. "Analyst coverage and greenwashing: Evidence from Chinese A-Share listed corporations," International Review of Economics & Finance, Elsevier, vol. 94(C).
    11. Yin, Lei & Yang, Yuanyuan, 2024. "How does digital finance influence corporate greenwashing behavior?," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 359-373.
    12. Hu, Xinwen & Hua, Renhai & Liu, Qingfu & Wang, Chuanjie, 2023. "The green fog: Environmental rating disagreement and corporate greenwashing," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).
    13. Guangrui Liu & Hao Qian & Yong Shi & Deli Yuan & Ming Zhou, 2024. "How do firms react to capital market liberalization? Evidence from ESG reporting greenwashing," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4329-4344, September.
    14. Huang, Kuo-Jui & Bui, Dien Giau & Hsu, Yuan-Teng & Lin, Chih-Yung, 2024. "The ESG washing in banks: Evidence from the syndicated loan market," Journal of International Money and Finance, Elsevier, vol. 142(C).
    15. Vera Ferrón‐Vílchez & Jesus Valero‐Gil & Inés Suárez‐Perales, 2021. "How does greenwashing influence managers' decision‐making? An experimental approach under stakeholder view," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 860-880, March.
    16. Marco Ghitti & Gianfranco Gianfrate & Lorenza Palma, 2024. "The agency of greenwashing," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(3), pages 905-941, September.
    17. Wei Wang & Ziyuan Sun & Weixing Zhu & Lin Ma & Yuting Dong & Xiao Sun & Fengzhi Wu, 2023. "How does multi‐agent govern corporate greenwashing? A stakeholder engagement perspective from “common” to “collaborative” governance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 291-307, January.
    18. Francesco Testa & Ivan Miroshnychenko & Roberto Barontini & Marco Frey, 2018. "Does it pay to be a greenwasher or a brownwasher?," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 1104-1116, November.
    19. Peter Seele & Mario D. Schultz, 2022. "From Greenwashing to Machinewashing: A Model and Future Directions Derived from Reasoning by Analogy," Journal of Business Ethics, Springer, vol. 178(4), pages 1063-1089, July.
    20. Matthew J. Spaniol & Evita Danilova-Jensen & Martin Nielsen & Carl Gyldenkærne Rosdahl & Clara Jasmin Schmidt, 2024. "Defining Greenwashing: A Concept Analysis," Sustainability, MDPI, vol. 16(20), pages 1-17, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:182:y:2024:i:c:s0148296324002972. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.