Governance and management drivers of ESG-washing in the pharmaceutical industry: an empirical analysis

Adriana Silva, Catarina Alexandra Neves Proença, Diana Dantas and Maria Elisabete Neves

Social Responsibility Journal, 2026, vol. 22, issue 5, 1159-1177

Abstract: PurposeThis study aims to identify the determinants of ESG-washing in the pharmaceutical sector, focusing on governance and management factors that influence companies’ deceptive sustainability practices.Design/methodology/approachA sample of 140 global pharmaceutical companies listed between 2016 and 2022 was analysed using the generalized method of moments system methodology to test the hypotheses related to governance and management variables affecting ESG-washing practices.FindingsThe results reveal that ESG-washing is present in the pharmaceutical sector, with certain governance factors playing a significant role. Specifically, larger board sizes, female representation on boards and ISO 14001 certification are associated with an increase in ESG-washing practices. Conversely, the presence of experienced directors and higher investments in research and development are found to reduce ESG-washing tendencies.Practical implicationsStricter regulations and governance reforms are needed to prevent ESG-washing in the pharmaceutical sector. Investors and consumers should critically assess corporate sustainability claims.Social implicationsESG-washing undermines public trust, delays environmental interventions and weakens workplace ethics. Regulatory and societal pressure will increase, demanding authentic sustainability efforts. Persistent ESG-washing may damage the pharmaceutical industry’s reputation, leading to stricter regulations and declining consumer confidence.Originality/valueThis study provides a novel contribution to the literature by examining ESG-washing determinants in the pharmaceutical sector. This area has received limited attention. The findings offer critical insights for regulators, investors, managers and civil society, aiding the development of effective strategies to mitigate ESG-washing and promote genuine sustainability efforts in the industry.

Keywords: Sustainability; ISO 14001; Transparency; GMM system; pharmaceutical sector; ESG-washing (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/srj/article/22/5/1159/1345 ... ivers-of-ESG-washing (text/html)
https://www.emerald.com/srj/article-pdf/22/5/1159/ ... j-05-2025-0499en.pdf (application/pdf)

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:eme:srjpps:srj-05-2025-0499

DOI: 10.1108/SRJ-05-2025-0499

Access Statistics for this article

Social Responsibility Journal is currently edited by Prof David Crowther

More articles in Social Responsibility Journal from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().