Greenwashing and Corporate Value: A Systematic Literature Review of its Impact On Financial Performance

Abstract

The phenomenon of greenwashing is increasingly drawing attention in modern business practices as demands for the implementation of sustainability principles and corporate environmental responsibility rise. Greenwashing refers to actions by companies that intentionally or unintentionally provide misleading information about their environmental performance, products, or sustainability activities to gain a positive image in the eyes of stakeholders. This practice has the potential to influence the perceptions of investors, consumers, and the public, thereby affecting the company's value and financial performance. This study aims to systematically examine the relationship between greenwashing, company value, and financial performance based on empirical findings that have been published in various academic literature. The method used is a Systematic Literature Review by collecting and analyzing relevant scientific articles from reputable international databases published within a certain time frame. The literature selection process is done through stages of identification, screening, eligibility, and inclusion according to systematic literature review guidelines. The review results show that greenwashing practices can provide short-term benefits such as increased company reputation and positive market responses, but in the long run, it tends to negatively impact the company's value if revealed to the public