Advanced International Journal of Multidisciplinary Research

E-ISSN: 2584-0487 •   Impact Factor: 9.11

An Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 4 Issue 5 September-October 2026 Submit your research before last 3 days of October to publish your research paper in the issue of September-October.
Submit Research Paper Join as a Reviewer

Plagiarism is checked by the leading plagiarism checker TurnItIn

Call for Paper

Volume 4 Issue 5
September-October 2026

Submit your research paper

Indexing Partners
Academia Advanced Sciences Index Bielefeld Academic Search Engine CiteSeer DRJI Google Scholar Independent Search Engine & Directory Network ISI (International Scientific Indexing) Issuu Mendeley Research Networks
RefSeek ResearcherId - Thomson Reuters ResearchGate Scribd Semantic Scholar UTeM - Universiti Teknikal Malaysia Melaka Wiki for Call for Papers WorldCat Zenodo

The ESG Credibility Gap: Greenwashing, Fraudulent Practices, and the Implications for Financial Transparency and Sustainable Corporate Performance

Author(s) Dr. Mukesh Kumar Kumawat
Country India
Abstract Environmental, social, and governance (ESG) investing has grown from a peripheral ethical consideration into a mainstream determinant of capital allocation, yet the credibility of the disclosures underpinning it remains contested. This paper examines the "ESG credibility gap" the widening disjuncture between corporate sustainability claims and verifiable underlying performance — through an integrative review of the greenwashing, fraud, disclosure, and corporate finance literatures, supplemented by analysis of landmark enforcement cases. Drawing on legitimacy theory, signaling theory, voluntary disclosure theory, and agency theory, the paper develops a conceptual framework that positions greenwashing and ESG fraud along a single continuum of misrepresentation distinguished chiefly by intent and materiality. It shows that structural features of the ESG information ecosystem — rating divergence, assurance gaps, and asymmetric regulatory enforcement — create incentives for symbolic rather than substantive sustainability behaviour. Case analysis of the DWS/Deutsche Bank greenwashing settlement and the Volkswagen "Dieselgate" scandal illustrates how credibility failures translate into capital-market penalties, reputational damage, and erosion of stakeholder trust. The paper further evaluates the European Union’s CSRD/SFDR/Taxonomy architecture and the unsettled trajectory of United States climate-disclosure regulation, arguing that convergent, assured, and enforceable disclosure standards are prerequisites for closing the credibility gap and for ESG to function as a reliable signal of sustainable corporate performance rather than a reputational veneer.
Keywords ESG; greenwashing; corporate fraud; financial transparency; sustainability reporting; disclosure regulation; corporate governance
Discipline Other
Published In Volume 4, Issue 5, September-October 2026
Published On 2026-10-28
View / Download Full-text Research PDF File

Share this



E-ISSN 2584-0487
Downloads
Cover Page Vol 2 Isu 5 Cover Page Vol 2 Isu 4 Cover Page Vol 2 Isu 3 Research Paper Format

All research papers published on this website are licensed under Creative Commons Attribution-ShareAlike 4.0 International License, and all rights belong to their respective authors/researchers.

CC-BY-SA Open Access

About AIJMR
Fees & Payment
Current Issue
Publication Archive 		Submit Research Paper
Track Submission Status
Publication Guidelines
Publication Ethics
Peer Review & Plagiarism 		Join as a Reviewer
Editors & Reviewers
Reviewer Referral Program
Get Reviewer Membership Certi. 		Website/Journal Policies
Usage Policy
Content Policies
Privacy Policy
Contact Us +91-9687-828-838 editor@aijmr.com