Research: How Some Companies Avoid Accusations of Greenwashing.

The article examines how apex firms within Business Groups (BGs)—networks of affiliated companies coordinated by a core firm—often avoid accusations of greenwashing despite engaging in fewer substantive sustainability actions than their lower-tier affiliates. Analyzing environmental, social, and governance (ESG) data from 515 publicly listed companies across 35 countries, the research finds that apex firms tend to symbolically communicate sustainability efforts without matching them with concrete actions, sometimes benefiting from market tolerance. The study suggests this dynamic may reflect a division of labor where apex firms act as communicators and affiliates as implementers, but warns that such practices risk long-term reputational damage. Recommendations include honest sustainability reporting, fostering a shared group identity to motivate genuine efforts, sharing best practices internally, and responding to evolving stakeholder expectations to ensure substantive, transparent sustainability commitments.