Little green lies: greenwashing’s detrimental impact on corporate perception and the interplay of perceived motives, skepticism and authenticity

Purpose Amidst the urgency of climate change, organizations often exaggerate their environmental commitments, resulting in a perceived gap between their environmental claims and real actions, termed as greenwashing. This paper explores the subjective nature of greenwashing, probing whether even minor discrepancies between environmental rhetoric and actions are perceived as such. Design/methodology/approach In two experiments, participants viewed an organization’s Instagram post promising green engagement, followed by a consumer magazine article revealing either a small, large or no discrepancy between the organization’s promises and its actual green activities. Findings The experiments reveal that participants rate corporate reputation and credibility lower when companies engage in even minor greenwashing, with this effect becoming more pronounced as the gap between promised and actual environmental engagement widens. Furthermore, the study finds that these effects are mediated by reduced attribution of intrinsic motivation and perceived authenticity, alongside increased attribution of extrinsic motivation and heightened skepticism toward the organization’s green engagement. Originality/value This study uniquely investigates how minor inconsistencies between green claims and actions impact stakeholders’ perceptions of organizations. It reveals the underlying mechanisms driving these effects and thus contributes to understanding the importance of transparent communication regarding environmental initiatives.