ifkad articles

Women Directors, Sustainability Knowledge and Greenwashing: A Study on Italian Companies

Beatrice Sveva Stasi, Fabrizia Sarto, Sara Saggese

In recent years, the growing attention to environmental, social, and governance (ESG) practices has driven companies to adopt Corporate Social Responsibility (CSR) strategies. The commitment to CSR is influenced by the need to satisfy stakeholder demands to improve firm performance. However, such growing pressure has also produced unintended distortions, notably the phenomenon of greenwashing, as corporate practice involving the dissemination of misleading information regarding a company’s ESG commitments to enhance company public image and reputation. This study aims to analyse two possible determinants at board of directors level of greenwashing: the presence of female directors and board members with sustainability knowledge. Based on a sample of 35 Italian publicly listed non-financial companies in 2023, the research employs logistic regressions to examine the effect of the above mentioned board features on greenwashing, which is measured by comparing the ESG Perception Index and the Standard Ethics Rating. The results show that both the presence of female directors and directors with sustainability knowledge positively affect the greenwashing. This suggests that, although these characteristics are often considered to enhance the quality and transparency of sustainability disclosure, they may also increase the ability to manipulate such information. The study contributes to both theory and practice. From a theoretical perspective, it contributes to the literature on board composition and the determinants of greenwashing. From a practical perspective, it highlights the importance for nomination committees to consider the role of gender and human capital in the directors’ appointment process, taking into account the potential association with greenwashing.

IN: Proceedings IFKAD 2025: Knowledge Futures: AI, Technology, and the New Business Paradigm
PP: 65-72