Skip to main content
SpringerLink
Log in

Social Accountability and Corporate Greenwashing

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Critics of SRI have said little about the integrity of corporate representations resulting in screening inclusion or exclusion. This is surprising given social and environmental accounting research that finds corporate posturing and deception in the absence of external verification, and a parallel body of literature describing corporate "greenwashing" and other forms of corporate disinformation. In this paper I argue that the problems and challenges of ensuring fair and accurate corporate social reporting mirror those accompanying corporate compliance with law. Similarities and points of convergence between social reporting and corporate compliance are discussed, along with proposals for reform.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Adams, Carol A.: 2002, 'Internal Organizational Factors Influencing Corporate Social and Ethical Reporting: Beyond Current Theorizing, Accountability', Auditing & Accountability Journal 15, 223-250.

    Google Scholar 

  • Anderson, D. (ed.): 1996, What Has 'Ethical Investment' to Do With Ethics (Social Affairs Unit, London).

    Google Scholar 

  • Abramson, Lorne and Dan Chang: 2000, 'Socially Responsible Investing: Viable for Value Investors?', Journal of Investing.

  • Ayres, Ian and John Braithwaite: 1992, Responsive Regulation: Transcending the Deregulation Debate (Oxford, New York).

  • Ayres, Ian and John Braithwaite: 1991, 'Tripartism: Regulatory Capture and Empowerment', Law and Social Inquiry 16, 435-496.

    Google Scholar 

  • Beder, Sharon: 1998, 'Manipulating Public Knowledge', Metascience 7, 132-139.

    Google Scholar 

  • Beder, Sharon: 1997, Global Spin: The Corporate Assault on Environmentalism (Chelsea Green, White River Junction, VT).

    Google Scholar 

  • Bruno, Kenny: 1997, The World of Greenwash, CorpWatch, January 1, 1997 (available at: www.corpwatch.org/campaigns/PCD, j s p ? articleid=244

  • Cumming, Jane F.: 2001, 'Engaging Stakeholders in Corporate Accountability Programmes: A Cross-Sectorial Analysis of U.K. and Transnational Experience', Business Ethics: A European Review 10, 44-52.

    Google Scholar 

  • Deegan, Craig: 2002, 'Introduction: The Legitimising Effect of Social and Environmental Disclosures-A Theoretical Foundation', Accountability, Auditing & Accountability Journal 15, 282-311.

    Google Scholar 

  • Deegan, Craig, Michaela Rankin and John Tobin: 2002, Accountability, Auditing & Accountability Journal 15, 312-343.

    Google Scholar 

  • Deegan, Craig and G. Carrol: 1993, 'An Analysis of the Incentives For Australian Firms to Apply for Reporting Excellence Awards', Accounting and Business Research 23, 219-227.

    Google Scholar 

  • Gallhofer, Sonja and Jim Haslam: 1997, 'The Direction of Green Accounting Policy: Critical Reflections', Accountability, Auditing & Accountability Journal 10, 148-174.

    Google Scholar 

  • Global Reporting Initiative, Sustainability Reporting Guidelines 2002 (GRI, Boston, MA) (available at: ttp://www.globalreporting.org/GRIGuidelines/ 2002/gri_2002_guidelines.pdf ).

  • Gray, Rob: 2001, 'Thirty Years of Social Accounting, Reporting and Auditing: What (if anything) Have We Learned?', Business Ethics: A European Review 10, 9-15.

    Google Scholar 

  • Gray, Rob, Colin Dey, Dave Owen, Richard Evans and Simon Zadek: 1997, 'Struggling with the Praxis of Social Accounting: Stakeholders, Accountability, Audits and Procedures', Accountability, Auditing & Accountability Journal 10, 325-364.

    Google Scholar 

  • Greer, Jed and Kenny Bruno: 1996, Greenwash: The Reality Behind Corporate Environmentalism (Apex Press, New York)

    Google Scholar 

  • Henriques, Adrian: 2001, 'Civil Society and Social Auditing', Business Ethics: A European Review 10, 40-44.

    Google Scholar 

  • Hooks, Jill, David Coy and Howard Davey (2002), 'The Information Gaps in Annual Reports', Accountability, Auditing & Accountability Journal 15, 501-522.

    Google Scholar 

  • Karliner, Joshua: 1999, 'UN Plan Fosters “Greenwash”,' Journal of Commerce (April 19), 8.

  • KPMG: 2002, International Survey of Corporate Sustainability Reporting (KPMG, Amsterdam).

    Google Scholar 

  • Laufer, William S.: 2002, 'Corporate Prosecution, Cooperation, and the Trading of Favors', Iowa Law Review 87, 123-150.

    Google Scholar 

  • Laufer, William S. and Gilbert Geis: 2001, 'Corporate Criminal Law, Cooperative Regulation, and the Parting of Paths', United Nations: Cahiers de Défence Sociale (UN, Milan, Italy).

    Google Scholar 

  • Laufer, William S.: 1999, 'Corporate Liability, Risk Shifting, and the Paradox of Compliance', Vanderbilt Law Review 54, 1343-1397.

    Google Scholar 

  • Macken, Julie: 2002, 'Standard Time for Global Workplace', Australian Financial Review ( July 30), 52.

  • Mackenzie, C.: 1998, 'The Choice Criteria in Ethical Investment', Business Ethics: A European Review 7, 2-8.

    Google Scholar 

  • Markus J. Milne and Dennis M. Patten: 2002, 'Securing Organizational Legitimacy: An Experimental Decision Case Examining the Impact of Environmental Disclosures', Accountability, Auditing & Accountability Journal 15, 372-405.

    Google Scholar 

  • Mitchell, Austin, Tony Puxty, Prem Sikka and Hugh Willmott, 1994, Ethical Statements as Smokescreens for Sectional Interests: The Case of the 260 William S. Laufer U.K. Accountancy Profession', Journal of Business Ethics 13, 39-51.

    Google Scholar 

  • Lordi, Robert: 2000, 'Corporate Conduct and Professional Integrity: Summary of a Pricewaterhousecoopers Survey', Perspectives 2, 58-61.

    Google Scholar 

  • Lubbers, Eveline: 2002, Battling Big Business: Countering Greenwash, Infiltration and Other Forms of Corporate Bulllying (Common Courage Press, Monroe, ME).

    Google Scholar 

  • Lydenberg, Steven D.: 2002, 'Envisioning Socially Responsible Investing: A Model for 2006', Journal of Corporate Citizenship 7, 57-77.

    Google Scholar 

  • National Center for Preventive Law: 1997, Corporate Compliance Principles iii (NCPL, Washington, DC).

    Google Scholar 

  • O'Donovan, Gary: 2002, 'Environmental Disclosures in The Annual Report: Extending the Applicability and Predictive Power of Legitimacy Theory', Accountability, Auditing & Accountability Journal 15, 344-371.

    Google Scholar 

  • Brendan, O'Dwyer: 2001, 'The Legitimacy of Accountants' Participation in Social and Ethical Accounting, Auditing and Reporting', Business Ethics: A European Review 10, 27-39.

    Google Scholar 

  • Owen, David: 1992, Green Reporting: Accountancy and the Challenge of the Nineties (Chapman & Hall, London).

    Google Scholar 

  • Owen, David and Tracey Swift: 2001, 'Introduction: Social Accounting, Reporting and Auditing: Beyond the Rhetoric', Business Ethics: A European Review 10, 4-8.

    Google Scholar 

  • Quirola, Dania and Michael Schlup: 2001, WS19-Sustainability Reporting-Beyond Greenwash, Minutes of Workshops of the 7th ERCP, Lund, Sweden, May, 2001.

  • Simpson: Sally S., 2002, Corporate Crime, Law, and Social Control (New York: Cambridge).

    Google Scholar 

  • Sparkes, Russell: 2001, 'Ethical Investment: Whose Ethics, Which Investment?', Business Ethics: A European Review 10, 194-205.

    Google Scholar 

  • Stittle, John: 2002, 'U.K. Corporate Ethical Reporting-A Failure To Inform: Some Evidence From Company Annual Reports', Business and Society Review 107, 349-370.

    Google Scholar 

  • Swift, Tracey: 2001, 'Trust, Reputation and Corporate Accountability to Stakeholders', Business Ethics: A European Review 10, 16-26.

    Google Scholar 

  • Tilt, Carol A.: 1994, 'The Influence of External Pressure Groups on Corporate Social Disclosure: Some Empirical Evidence', Accountability, Auditing & Accountability Journal 7, 47-72.

    Google Scholar 

  • Trevino, Linda, Kenneth D. Butterfield and Donald L. McCabe: 1998, 'The Ethical Context in Organizations: Influences on Employee Attitudes and Behaviors', Business Ethics Quarterly 8, 447-476.

    Google Scholar 

  • Trevino, Linda et. al.: 1999, 'Managing Ethics and Legal Compliance: What Works and What Hurts', in T. Beauchamp and N. Bowie (eds.), Ethical Theory and Business (Prentice Hall, Upper Saddle River, NJ).

    Google Scholar 

  • Vogel, David: 1989, Fluctuating Fortunes: The Political Power of Business in America (Basic Books, New York).

    Google Scholar 

  • Waddock, Sandra and Neil Smith: 2000, 'Corporate Responsibility Audits: Doing Well by Doing Good', Sloan Management Review 41, 75-84.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Carol and Lawrence Zicklin Center for Business Ethics Research, The Wharton School, University of Pennsylvania, 6th Floor, Jon M. Huntsman Hall, 3730 Walnut Street, Philadelphia, PA, 19104-6340, U.S.A.

    William S. Laufer

Authors
  1. William S. Laufer
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Cite this article

Laufer, W.S. Social Accountability and Corporate Greenwashing. Journal of Business Ethics 43, 253–261 (2003). https://doi.org/10.1023/A:1022962719299

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1022962719299

Keywords

Search

Navigation