Challenging to Change? Examining the Link Between Public Participation and Greenwashing Based on Organizational Inertia

Bei Liu (), Chengwu Li and Yin Zhong
Additional contact information
Bei Liu: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China
Chengwu Li: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China
Yin Zhong: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China

Sustainability, 2025, vol. 17, issue 3, 1-20

Abstract: This study investigates the impact of public participation on corporate greenwashing behavior among listed companies in China from 2011 to 2019, set against a backdrop of increasing global environmental regulations. Corporate greenwashing, characterized by misleading environmental claims, poses a significant barrier to sustainable development. Despite the recognition of public participation in social governance, organizational inertia often prevents companies from responding effectively. Our analysis reveals that public participation leads to stricter environmental regulations, thereby reducing greenwashing practices. This finding remains robust through various tests, including variable substitution and model adjustments. However, we also find that higher levels of organizational inertia weaken the positive influence of public participation on combating greenwashing. Thus, this study underscores the necessity of establishing mechanisms for public participation that can effectively shape corporate decision-making, offering crucial insights for enhancing corporate accountability and advancing sustainable practices.

Keywords: corporate greenwashing; public participation; organizational inertia; environmental regulation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/17/3/1229/pdf (application/pdf)
https://www.mdpi.com/2071-1050/17/3/1229/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:17:y:2025:i:3:p:1229-:d:1582893

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().