A Path Analysis of Greenwashing in a Trust Crisis Among Chinese Energy Companies: The Role of Brand Legitimacy and Brand Loyalty

Rui Guo (), Lan Tao (), Caroline Bingxin Li and Tao Wang
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Rui Guo: China University of Geosciences
Lan Tao: China University of Geosciences
Caroline Bingxin Li: University of Denver
Tao Wang: Wuhan University

Journal of Business Ethics, 2017, vol. 140, issue 3, No 9, 523-536

Abstract: Abstract For many energy companies in China, green brand strategy is becoming an important approach to enhance competitive advantage. However, greenwashing behaviors result in a crisis of trust. Existing research focuses on green marketing, but is silent on the institutional view of the trust crisis resulting from greenwashing by energy brands. Thus, this study takes a decoupling perspective from institutional theory and considers legitimacy, energy policy management, and green brand theories to shed light on the path from the decoupling of an energy brand from green promise (DEBG) to green energy brand trust (GEBT) and the role of brand legitimacy and brand loyalty. It then analyzes survey data to conclude that DEBG not only has a direct negative effect on GEBT but also has an indirect influence through the vital mediating role of green energy brand legitimacy. Moreover, brand loyalty is a moderating factor and can alleviate the energy brand trust crisis. These findings not only can enrich the theories of energy brand management and green marketing but also offer important implications for energy policy management.

Keywords: Greenwashing; Energy brands; Decoupling; Legitimacy; Brand loyalty; Brand trust (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (58)

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DOI: 10.1007/s10551-015-2672-7

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