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ESG rating divergence, greenwashing, and supply chain performance: the role of guanxi

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  • Fu, Bozhi
  • Wei, Xiaoyong

Abstract

Despite the increasing prevalence of environmental, social, and governance (ESG) ratings, considerable divergence persists among rating agencies in their evaluations of individual firms. The potential impacts of such rating divergence on supply chain performance remains understudied. Utilizing data from China’s listed companies between 2015 and 2023, and ESG ratings from six agencies, we found that ESG rating divergence could incentivize firms to engage in strategic greenwashing. On average, such opportunistic greenwashing activities could lead to a reduction in firms’ sales to key customers by 3.78% and purchases from major suppliers by 4.65%. Interestingly, firms had weaker guanxi with supply chain partners were more likely to engage in opportunistic greenwashing behavior. Guanxi may curb greenwashing when firms face salient ESG rating divergence. These findings highlight how ESG rating divergence, greenwashing, and guanxi collectively influence signaling efficiency in a relationship-oriented context, ultimately shaping supply chain outcomes. Theoretical and practical implications are discussed.

Suggested Citation

  • Fu, Bozhi & Wei, Xiaoyong, 2026. "ESG rating divergence, greenwashing, and supply chain performance: the role of guanxi," Journal of Business Research, Elsevier, vol. 208(C).
    • Handle: RePEc:eee:jbrese:v:208:y:2026:i:c:s0148296326001128
    DOI: 10.1016/j.jbusres.2026.116078
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