A Quantitative Analysis of Greenwashing Practices in Corporate Carbon Accounting and Its Impact on Stakeholder Trust and Regulatory Compliance

Muhammed Zakir Hossain
Additional contact information
Muhammed Zakir Hossain: Associate Professor, Department of Business Studies, State University of Bangladesh, Bangladesh

Post-Print from HAL

Abstract: This study examines how greenwashing appears within corporate carbon accounting and identifies the institutional and reporting conditions that influence such behavior. As pressure from investors, regulators, and consumers intensifies, firms are increasingly expected to disclose greenhouse gas (GHG) emissions in a transparent manner. In this context, the study evaluates the relationship between carbon disclosures (Scope 1, Scope 2, and Scope 3 emissions), regulatory scrutiny, stakeholder trust, the use of carbon offsets, and sustainability performance with the likelihood of greenwashing. A quantitative research design is applied to data from 100 companies, and the hypotheses are tested through descriptive statistics, Pearson correlation, and multiple regression analysis. The results suggest that higher Scope 1 emissions and greater regulatory scrutiny are associated with greenwashing, while more extensive Scope 3 disclosure is linked with a lower tendency toward such practices, though only marginally. By contrast, stakeholder trust, symbolic reporting, and carbon offsets do not significantly explain greenwashing behavior in the model. The study highlights the need for fuller carbon disclosure, stricter regulatory monitoring, and greater emphasis on operational decarbonization rather than symbolic sustainability claims. These findings extend the literature on corporate sustainability reporting and provide actionable insights for policymakers, managers, and stakeholders who seek to improve accountability and credibility in carbon accounting.

Keywords: Scope 1 Emissions; Scope 2 Emissions; Scope 3 Emissions; Carbon Offsets; Stakeholder Trust; Sustainability Performance; Carbon Disclosures; Corporate Carbon Accounting; Greenwashing (search for similar items in EconPapers)
Date: 2026-03-30
References: Add references at CitEc
Citations:

Published in European Journal of Management, Economics and Business, 2026, 3 (2), pp.226-237. ⟨10.59324/ejmeb.2026.3(2).17⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:hal:journl:hal-05736630

DOI: 10.59324/ejmeb.2026.3(2).17

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().