Organizational and Institutional Factors that Intensify the Use of Greenwashing by the World’s Major Car Manufacturers

Abstract

Under the increasing pressure to be environmentally friendly, some companies deliberately disclose some events to create an impression of transparency and conceal their real performance. This study aims to identify the organizational and institutional factors that have intensified the use of green washing by some of the world"s biggest vehicle manufacturers. Herein, a qualitative-descriptive approach was adopted along with documentary research. The analysis shows that the selected companies have promoted themselves through false and deceptive practices. The first category is associated with external actors, such as the government and agencies that approve the sales of new cars, and consumers. The investigated car manufacturers used software that caused part of their diesel vehicles to emit smaller amounts of nitrogen oxides than allowed by the European and North American legislation, hence seeking the approval of regulatory agencies and consumer acceptance. The second category refers to internal practices, in which the investigated companies have sought to avoid legal sanctions and economic losses through fraud, hence causing socio-environmental harm. Through selective and partial disclosure of information, car manufacturers sought self-promotion and self-preservation. This research provides companies and managers with managerial implications. In this regard, fraud and dishonest sustainable strategies might cause severe harm to car manufacturers.