Sustainability-related corporate governance and greenwashing practices: preliminary evidence from southeast Asian companies

• 出版年: MEDITARI ACCOUNTANCY RESEARCH
• 主要な著者: Pratama, Arie; Yusoff, Haslinda; Yadiati, Winwin; Jaenudin, Edi
• フォーマット: Article; Early Access
• 言語: English
• 出版事項: EMERALD GROUP PUBLISHING LTD 2025
• 主題: Business & Economics
• オンライン･アクセス: https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001446052900001
• ISSN: 2049-372X; 2049-3738
• DOI: 10.1108/MEDAR-07-2024-2579

PurposeThis study aims to examine how sustainability-related corporate governance mechanisms mitigate greenwashing in Southeast Asia. It investigates the impact of sustainability committees, sustainability-focused directors, certification and assurance processes and directors' sustainability knowledge on environmental, social, and governance disclosure transparency across firms in Indonesia, Malaysia, Singapore and Thailand.Design/methodology/approachUsing a quantitative explanatory approach, this study analyzes firms listed on sustainability indices in the four countries. Data from annual and sustainability reports (2021-2022) and Refinitiv sustainability scores are examined. A purposive sample of 132 companies (264 observations) is analyzed. Greenwashing is measured by comparing international financial reporting standards S1-based disclosure scores with sustainability performance scores. Descriptive statistics, nonparametric tests and logistic regression are applied.FindingsSustainability governance structures, particularly sustainability committees, fail to prevent greenwashing. A significant correlation exists between committee size and greenwashing likelihood, with executive-dominated committees fostering symbolic efforts. Other governance factors, such as sustainability directors and certifications, show no significant impact. Younger, less profitable firms are more prone to greenwashing. Even countries with strong frameworks, such as Singapore and Malaysia, struggle with greenwashing, while Indonesia and Thailand exhibit fewer cases. This study highlights the need for standardized governance frameworks.Originality/valueThis study provides novel insights into sustainability governance and greenwashing in Southeast Asia. It highlights how executive-dominated committees exacerbate greenwashing and reveals governance disparities across countries. By addressing governance immaturity, insufficient training and a lack of standardized certifications, this study underscores the importance of international governance standards.