Greenwashing and corporate governance: a systematic review of literature based on TCCM framework

Purpose This study aims to review the literature on the intersection of greenwashing and corporate governance, with a specific focus on environmental, social, governance (ESG) practices. Design/methodology/approach The study undertakes an extensive systematic literature review (SLR) of 97 articles retrieved from the Scopus database. It applies the TCCM (theory, context, characteristics and methodology) framework to present its findings. Findings The research indicates an increasing trend in publications on this topic, particularly after 2020, with contributions across 50+ journals and a broad geographic spread. The dominant theories used in the studies include stakeholder theory, legitimacy theory and greenwashing theory. The context of greenwashing behaviors differs significantly across industries and regions, emphasizing the need for tailored governance solutions. Key themes include organizational setting, greenwashing activities, ESG performance, financial impact, investor analysis and corporate governance. The research base is primarily dominated by empirical studies relying on secondary data from reputed sources. Practical implications The study’s findings hold value for both academicians and practitioners by providing insights into greenwashing behaviors and their governance implications. They highlight the importance of customized governance strategies across industries and regions, fostering better ESG performance and stakeholder trust. Social implications The study highlights significant social implications by addressing the adverse effects of greenwashing on public trust, ethical business practices and stakeholder confidence. By promoting transparency and authentic ESG practices, it fosters greater accountability among corporations, empowering consumers and investors to make informed decisions. This, in turn, supports equitable access to sustainable development benefits, encourages ethical corporate behavior and strengthens community trust in sustainability initiatives, ultimately contributing to a fairer, more socially responsible economic and environmental system. Originality/value This study provides a comprehensive review of greenwashing and governance practices, offering a structured analysis through the TCCM framework and revealing critical gaps as well as future research directions in this domain. To the best of the authors’ knowledge, this is the first study that explicitly links corporate governance and greenwashing using the TCCM framework.