Sustainability in appearance or in practice? How perceived greenwashing undermines employee performance

Abstract

The increasing strategic relevance of sustainability has led many organizations to publicly promote their environmental responsibility. However, discrepancies between sustainability communication and actual practices may generate perceptions of greenwashing. While prior research has largely focused on external stakeholders, less is known about the internal consequences of perceived greenwashing. Drawing on organizational behavior and sustainability strategy literature, this study examines whether perceived greenwashing negatively affects employee task performance and organizational citizenship behaviors. Survey data were collected from 154 employees across multiple sectors. Regression analyses reveal that perceived greenwashing is negatively associated with both task performance and discretionary behaviors. Contrary to expectations, personal environmental commitment and green skepticism did not moderate these relationships. The findings suggest that symbolic sustainability strategies may undermine internal performance outcomes, highlighting the importance of strategic authenticity for long-term organizational sustainability.