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Fuzzy reporting as a way for a company to greenwash: perspectives from the Colombian reality

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  • Contreras-Pacheco, Orlando E.
  • Claasen, Cyrlene

Abstract

Drawing on the legitimacy theory framework, this study introduces an alternative means to spot “fuzzy reporting” signals as a way to detect greenwashing at the firm level. Its approach is based on the way the sustainability reporting process can mislead stakeholders after critical incidents take place. In order to do so, a single environmental incident, which took place in Colombia, is analyzed in light of what happened before, during and afterwards, with special emphasis on the corporate disclosure process performed by the company involved. Results obtained give support to the assumption that fuzzy reporting can be objectively detected not only through the analysis of annual sustainability reports, but also by tracking other forms of corporate messages when a specific concern is carefully followed. This study’s contribution is two-fold. First, it builds on the theoretical notions of greenwashing and fuzzy reporting by illustrating a practical and objective way to identify some deceiving corporate practices. Second, it empirically evaluates this approach in a sensitive context in order to obtain better illustration and prepare the groundwork for further studies.

Suggested Citation

  • Contreras-Pacheco, Orlando E. & Claasen, Cyrlene, 2017. "Fuzzy reporting as a way for a company to greenwash: perspectives from the Colombian reality," MPRA Paper 85472, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:85472
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    References listed on IDEAS

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    Cited by:

    1. Noémi Nemes & Stephen J. Scanlan & Pete Smith & Tone Smith & Melissa Aronczyk & Stephanie Hill & Simon L. Lewis & A. Wren Montgomery & Francesco N. Tubiello & Doreen Stabinsky, 2022. "An Integrated Framework to Assess Greenwashing," Sustainability, MDPI, vol. 14(8), pages 1-13, April.
    2. Silvia Ruiz-Blanco & Silvia Romero & Belen Fernandez-Feijoo, 2022. "Green, blue or black, but washing–What company characteristics determine greenwashing?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 4024-4045, March.
    3. Honglei Mu & Youngchan Lee, 2023. "Greenwashing in Corporate Social Responsibility: A Dual-Faceted Analysis of Its Impact on Employee Trust and Identification," Sustainability, MDPI, vol. 15(22), pages 1-17, November.

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    More about this item

    Keywords

    Legitimacy; corporate social responsibility (CSR); greenwashing; sustainability reports; social and environmental reporting; fuzzy reporting; mining industry; Colombia;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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