Journal of Business Ethics

, Volume 109, Issue 2, pp 227–242

The Harm of Symbolic Actions and Green-Washing: Corporate Actions and Communications on Environmental Performance and Their Financial Implications


DOI: 10.1007/s10551-011-1122-4

Cite this article as:
Walker, K. & Wan, F. J Bus Ethics (2012) 109: 227. doi:10.1007/s10551-011-1122-4


We examine over 100 top performing Canadian firms in visibly polluting industries as we seek to answer four research questions: What specific environmental issues are firms addressing? How do these issues differ between industries? Are both symbolic and substantive actions financially beneficial? Does green-washing, measured as the difference between symbolic and substantive action, and/or green-highlighting, measured as the combined effect of symbolic and substantive actions, pay? We find that substantive actions of environmental issues (green walk) neither harm nor benefit firms financially, but symbolic actions (green talk) are negatively related to financial performance. We also find that green-washing (discrepancy between green talk and green walk) has a negative effect on financial performance and green-highlighting (concentrated efforts of the talk and walk) has no effect on financial performance. In this article, we provide explanations of our findings and put forth future research directions.


Corporate environmental performance Corporate websites Green-highlighting Green-washing Substantive actions Symbolic actions 

Copyright information

© Springer Science+Business Media B.V. 2011

Authors and Affiliations

  1. 1.Odette School of BusinessUniversity of WindsorWindsorCanada
  2. 2.I.H. Asper School of BusinessUniversity of ManitobaWinnipegCanada

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