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The Greenwashing Machine, Is CSR more than communication ?

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  • Rémi BAZILLIER
  • Julien Vauday

Abstract

Corporate Social Responsibility (CSR) and advertising are strategic complements. If a claim about the environmental or social benefits of a product is unsubstantiated or mislead- ing, this practice is known as greenwashing (GW). The model clearly identifies some "usual suspects" that will prefer GW over CSR. We then carry out an empirical analysis using CSR data, economic data on the 500 largest European firms, and proxies for green com- munication to test the predictions. Several instruments are used to estimate the propensity to prefer GW. We show that "hard greenwashing", i.e. active communication with no CSR at all, is not always a credible strategy, and highlight the concept of "light greenwashing". It may have two dimensions: either it can be a response to the presence of greenwashing firms or it can be due to the simple possibility of advertising. Both possibilities are verified empirically, thus confirming the changing nature of greenwashing practices.
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Suggested Citation

  • Rémi BAZILLIER & Julien Vauday, 2009. "The Greenwashing Machine, Is CSR more than communication ?," LEO Working Papers / DR LEO 1617, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    • Handle: RePEc:leo:wpaper:1617
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    Cited by:

    1. Michael Boland & Brendan Cooper & James M. White, 2016. "Making Sustainability Tangible: Land O'Lakes and the Dairy Supply Chain," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(2), pages 648-657.
    2. Lin, Yi-Ting & Liu, Nien-Chi & Lin, Ji-Wei, 2022. "Firms’ adoption of CSR initiatives and employees’ organizational commitment: Organizational CSR climate and employees’ CSR-induced attributions as mediators," Journal of Business Research, Elsevier, vol. 140(C), pages 626-637.
    3. Kinvi Logossah, 2013. "Diversité et unité du concept de responsabilité sociale des entreprises," Documents de Travail 2013-09, CEREGMIA, Université des Antilles et de la Guyane.
    4. Capron, Michel & Petit, Pascal, 2011. "Responsabilité sociale des entreprises et diversité des capitalismes," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 9.
    5. Friedrich, Nina & Heyder, Matthias & Theuvsen, Ludwig, 2012. "Sustainability Management in Agribusiness: Challenges, Concepts, Responsibilities and Performance," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144979, International European Forum on System Dynamics and Innovation in Food Networks.
    6. Cézanne, Cécile & Rubinstein, Marianne, 2012. "La RSE comme instrument de gouvernance d’entreprise : une application à l’industrie française des télécommunications," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 12.
    7. Gunther Capelle-Blancard & Aurélien Petit, 2019. "Every Little Helps? ESG News and Stock Market Reaction," Journal of Business Ethics, Springer, vol. 157(2), pages 543-565, June.
    8. Cécile Cézanne & Marianne Rubinstein, 2011. "The Role of CSR in the Governance of the "New firm": an Empirical Study of the French Telecommunications Industry," CEPN Working Papers hal-00628726, HAL.
    9. Friedrich, Nina & Heyder, Matthias & Theuvsen, Ludwig, 2012. "Sustainability Management in Agribusiness: Challenges, Concepts, Responsibilities and Performance," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 3(2), pages 1-13, December.
    10. Ma Zhong & Weiqi Zhao & Yasir Shahab, 2022. "The philanthropic response of substantive and symbolic corporate social responsibility strategies to COVID‐19 crisis: Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(2), pages 339-355, March.
    11. Tae Kyung Yoon & Seongjun Kim & Takako Takano & Sun-Jin Yun & Yowhan Son, 2016. "Contributing to Sustainability Education of East Asian University Students through a Field Trip Experience: A Social-Ecological Perspective," Sustainability, MDPI, vol. 8(10), pages 1-19, October.
    12. Cécile Cézanne & Marianne Rubinstein, 2011. "The Role of CSR in the Governance of the "New firm": an Empirical Study of the French Telecommunications Industry," Working Papers hal-00628726, HAL.
    13. Derek Moscato & Toby Hopp, 2019. "Natural born cynics? The role of personality characteristics in consumer skepticism of corporate social responsibility behaviors," Corporate Reputation Review, Palgrave Macmillan, vol. 22(1), pages 26-37, February.
    14. Alexandra ZBUCHEA, 2013. "Are Customers Rewarding Responsible Businesses? An Overview of the Theory and Research in the Field of CSR," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 1(3), pages 367-385, December.
    15. Driver, Ciaran, 2015. "Advertising’s Elusive Economic Rationale: is there a case for limiting tax relief?," MPRA Paper 68790, University Library of Munich, Germany.
    16. Lucia Gatti & Peter Seele & Lars Rademacher, 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, Springer, vol. 4(1), pages 1-15, December.
    17. 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.
    18. Ross, R. Brent & Pandey, Vivek & Ross, Kara L., 2015. "Sustainability and Strategy in U.S. Agri-Food Firms: An Assessment of Current Practices," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(1), pages 1-32, February.
    19. James W. Westerman & Lubna Nafees & Jennifer Westerman, 2021. "Cultivating Support for the Sustainable Development Goals, Green Strategy and Human Resource Management Practices in Future Business Leaders: The Role of Individual Differences and Academic Training," Sustainability, MDPI, vol. 13(12), pages 1-9, June.

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