Does Greenwashing Pay Off? Understanding the Relationship Between Environmental Actions and Environmental Legitimacy

  title={Does Greenwashing Pay Off? Understanding the Relationship Between Environmental Actions and Environmental Legitimacy},
  author={Pascual Berrone and Andrea Fosfuri and Liliana Gelabert},
  journal={Journal of Business Ethics},
Do firms gain environmental legitimacy when they conform to external expectations regarding the natural environment? Drawing on institutional logic and signaling theory, we investigate sources of heterogeneity in the impacts of environmental actions on environmental legitimacy. Longitudinal data (1997–2001) about 325 publicly traded U.S. firms in polluting industries support the notion that environmental actions help firms gain environmental legitimacy. However, some actions instead can harm… 

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