Greenwashing behaviors in construction projects: there is an elephant in the room!

Abstract

In the process of urbanization, a brisk building boom triggers a series of environmental problems. Construction contractors usually present environmentally fraudulent behaviors, i.e., greenwashing behaviors (GWBs), to legitimize their activities, ultimately hindering the sustainable development of the society. However, the formation mechanism of the contractors' GWBs is still unclear. Through the lens of fraud GONE theory (i.e.,greed, opportunity, needs, and exposure), this study applies the multi-group structural equation model (SEM) and fuzzy-set qualitative comparative analysis (fsQCA) to examine the formation mechanisms of GWBs. The results of SEM show the relationships between four fraud factors and GWBs. Additionally, the projects are grouped into three categories: government investment projects, private-public-partnership (PPP) projects, and private investment projects. The results of multi-group SEM reveal that the effects of four fraud factors differ significantly across projects with different investment characteristics. The results of fsQCA suggest that there are three typical driving mechanisms for GWBs. Furthermore, this study develops a project information transparency framework and a "greenwashing tree" to form a systematic understanding of GWBs. Finally, on these bases, this study provides targeted suggestions and policy recommendations for governing contractors' GWBs.