Greenwashing firms are scrutinised less if they are in politicians' pockets

Businesses who invest heavily in political activities and lobbying are more likely to get away with greenwashing, according to new research from Durham University Business School.

The researchers argue that this is partly because a firm's political connections allow them an extra layer of protection when it comes to scrutiny, allowing them to continue to greenwash without punishment.

These findings come from research by Joseph Amankwah-Amoah, Professor of International Business at Durham University Business School, alongside his colleagues; Ahmed Adel Tantawy (Sheffield Business School) and Samuel Yaw Kusi (University of Bradford), who were interested in understanding how corporate political engagement activities create conditions that allow greenwashing to flourish.

To do so, the researchers studied literature and illustrative cases of internationally active firms and their corporate connections, developing an integrated conceptual framework to capture market dynamics, institutional effects and perceptions of greenwashing firms.

The researchers found that, for firms, investing in their political connections is a worthwhile activity as it allows them to face less scrutiny over their environmental footprint – and receive little pushback on their marketing activities around their environmental impact.

The researchers say that this is because heavy lobbying and connection making means politicians have less incentive to expose these firms' malpractices.

"For firms, appearing as a socially and environmentally conscious company is a vital marketing tool in today's day and age – which can often lead to over-exaggeration from organisations," says Professor Amankwah-Amoah.

"For most firms, customers and regulators can have a negative pushback on this, but those firms who've invested in political lobbying receive less scrutiny."

The researchers say that these close ties between greenwashing firms and politicians clearly need regulating further, and suggest that there needs to be a more standardised framework across the globe on how firms communicate their environmental activities in an open and transparent manner.

Additionally, the researchers state that green certification efforts such as stringent regulatory enforcement and sanctions for infringements can serve as a deterrent. However, these need to be led by independent politicians and regulators, rather than politicians who can be lobbied against or corrupted through political investment from greenwashing firms.

"Ultimately, what's needed is independence," says Professor Amankwah-Amoah. "Regulators and standards bodies overseeing environmental claims must be insulated from the political influence of the very firms they're meant to hold accountable – otherwise the framework is only as strong as its weakest connection."

Without independent oversight, even the most robust-looking sustainability regulations risk becoming symbolic rather than enforceable. As global pressure on firms to demonstrate genuine environmental responsibility continues to grow, the researchers conclude that transparency alone is not enough – it must be backed by regulators and institutions insulated from the very corporate influence they are meant to police.

This research was published in the International Marketing Review.

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