Impact of greenwashing, green skepticism and corporate social responsibility on green brand equity

Abstract The extensive emergence of green marketing has brought significant benefits to businesses, society, and the environment, as evidenced in numerous research studies. However, the challenges associated with green marketing are equally important, yet these issues have not been thoroughly examined. Therefore, with the support of Signalling theory and Stakeholder theory, this study aims to investigate the negative effects of green marketing, specifically the impact of greenwashing on green brand equity. Additionally, it examines the mediating role of green skepticism and the moderating role of corporate social responsibility (CSR) in mitigating the adverse impacts of green practices on green brand equity. Based on 250 valid responses analyzed using partial least squares structural equation modeling (PLS-SEM), the results show that greenwashing negatively impacts green brand equity both directly and indirectly through green skepticism. Furthermore, CSR was found to reduce the negative impact of green skepticism on green brand equity. These findings provide valuable theoretical insights and practical implications for businesses and regulators in Vietnam. Businesses can enhance their communication of sustainability commitments through transparent green marketing campaigns that emphasize eco-friendly products and initiatives, thus resonating with environmentally conscious consumers.