This study aims to examine whether and how consumer perceptions of corporate greenness reflect objective measures of firms’ environmental performance. This paper examines how different aspects of corporate environmental performance impact overall corporate green reputation.
Using regression models, this paper analyzes how corporate environmental performance, encompassing both environmental impact and management, shapes overall corporate green reputations. This paper controls for several potential covariates.
This paper finds that firms’ green reputations reflect their environmental management practices and environmental disclosures. However, this paper also demonstrates that corporate green reputations do not necessarily reflect objective measures of environmental impact outcomes. Firms with worse environmental impact appear to be more engaged in environmental disclosure, which in turn boosts their green reputations.
A better understanding of the relationship between firms’ actual greenness and perceived greenness will help not only protect consumers and investors but also preserve fair competition among firms and foster the green market.
This study primarily focuses on for-profit firms, offering valuable insights into the role of corporate green initiatives in enhancing green brand reputations. These insights are relevant to corporate strategists, boards, marketers, consumers, investors, government policymakers and NGOs by informing investment, policy decisions and guiding strategic actions.
While a sizable body of research exists on various green marketing topics, there is little research on how firm-level environmental efforts shape public perceptions of corporate greenness in terms of overall corporate branding. This paper seeks to address this gap by investigating determinants of overall corporate green reputations.
