Stakeholder Perceptions of Sustainability Reporting: An Examination of Transparency, Credibility, and Greenwashing Practices

This study investigates stakeholder perceptions of sustainability reporting in the banking sector, focusing on the roles of transparency, credibility, and perceived greenwashing. Using a quantitative survey approach, data were collected from 410 stakeholders in Coimbatore, including investors, bank employees, and customers. The study employed Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the hypothesized relationships. Results indicate that transparency significantly enhances the credibility of banks’ sustainability reports, while both transparency and credibility reduce stakeholders’ perceptions of greenwashing. Furthermore, credibility was found to partially mediate the relationship between transparency and perceived greenwashing, highlighting the importance of credible reporting for mitigating stakeholder skepticism. The findings contribute to stakeholder theory and provide actionable insights for banks seeking to strengthen legitimacy, trust, and accountability in sustainability communication.