Greenwashing or Genuine? Understanding Stakeholder Reactions to Corporate Climate Pledges

• Lucas J. Reinhardt

  Bavaria University

  Author

Corporate climate pledges have become widespread as firms face increasing regulatory pressure, investor scrutiny, and public expectations regarding environmental responsibility. However, stakeholders frequently question whether these pledges represent meaningful commitments or strategic greenwashing. This paper examines how stakeholders—investors, consumers, employees, and NGOs—interpret, evaluate, and respond to corporate climate pledges. Drawing on signaling theory, legitimacy theory, and stakeholder theory, the paper explores the cognitive mechanisms and contextual factors shaping stakeholder judgments. The analysis synthesizes prior empirical findings and proposes an integrative framework explaining when climate pledges enhance trust and when they trigger skepticism. The study contributes to the literature by clarifying the boundary conditions under which climate commitments are perceived as credible, providing theoretical insights for scholars and practical implications for firms aiming to build authentic environmental reputations.

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