Providing a model for corporate governance that prevents greenwashing of companies based on the theory of the new paradigm of green governance

Document Type : Original Article

Authors

1 PhD Student in Accounting, Department of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran

2 Assistant Prof, Department of Accounting, Sufian Branch, Islamic Azad University, Sufian, Iran

3 Associate Prof, Department of Accounting, Bonab Branch, Islamic Azad University, Bonab, Iran

4 Assistant Prof, Department of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran

Abstract

Objective: Greenwashing is a mirror that exposes the deep gap between the deceptive claims and the actual performance of organizations. In this context, the transcendent corporate governance appears as a guiding star; not merely as a regulatory framework, but as an existential philosophy that aligns the souls of organizations with environmental ethics. The world's leading organizations have realized that sustainable governance is the highest manifestation of managerial wisdom; a delicate art in which natural resource limitations are transformed into gifts for the creation of lasting values.
Methods: In this regard, the present study presents a fundamental model for corporate governance that prevents greenwashing in companies. This study is considered exploratory and qualitative in terms of methodology. Due to the lack of a coherent framework regarding corporate governance that prevents greenwashing in companies, a data-driven theory approach was used with the help of in-depth interviews with experts in 1404. Then, using Delphi analysis, the reliability of the identified dimensions was examined. The statistical population of the study included 14 academic experts and accounting professors with professional experience in the field of accounting and financial reporting, as well as members of the sustainability standards development board and corporate governance developers of companies, who were selected based on the purposeful sampling method with a snowball approach.
Results: The results of the present study revealed three central categories (sustainable governance structures, sustainable organizational culture, sustainable executive structures) that include nine main components (green accounting decision-making frameworks, internal organizational monitoring structures, fundamental legal requirements, leadership committed to accounting and reporting transparency, motivational structures based on quantitative performance indicators, communication patterns based on sustainability accounting reports, green budgeting and resource allocation systems, monitoring structures on the quality and accuracy of environmental information, and systems for developing sustainability accounting capabilities) and included a total of 45 conceptual themes. This study, enriching the theoretical and practical knowledge of corporate governance that prevents greenwashing, shows that responsible governance is possible only by combining three key elements: transparent regulatory structures that act as a safety net to prevent environmental fraud; a genuine organizational culture that makes sustainability a part of the organization's life; and smart implementation mechanisms that translate theoretical principles into tangible actions.
Conclusion: The findings indicate that by creating an organic link between these three elements, leading organizations not only escape the greenwashing trap, but also turn sustainability into an engine for innovation and sustainable value creation. This integrated framework provides a novel model that can guide policymakers, regulators, and corporate managers in designing responsible governance systems.
Innovation: The fundamental innovation of this research is in integrating different levels of analysis and presenting a systemic model. Unlike studies that consider green corporate governance as merely a set of incentive mechanisms, this research emphasizes preventive, controlling, and responsive aspects simultaneously by introducing the concept of "deterrent leadership".
 

Keywords

References

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Journal of Finance and Corporate Sustainability
Volume 1, Issue 2 - Serial Number 2
February 2026
Pages 101-141

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History

  • Receive Date: 22 November 2025
  • Revise Date: 19 December 2025
  • Accept Date: 05 February 2026
  • First Publish Date: 05 February 2026
  • Publish Date: 21 January 2026

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