Greenwashing Resistance in SMEs: The Role of ESG Perceptions and Practices
Volume 03 Issue 1
Authors
Jan Kubalek, Michal Kudej
Keywords
ESG, greenwashing, ecological thinking promotion, ESG activities transparency, SMEs
Citation in APA style
Kubalek, J., & Kudej, M. (2025). Greenwashing Resistance in SMEs: The Role of ESG Perceptions and Practices. Journal of Business Sectors, 3(1), 104–111. https://doi.org/10.62222/MDZH3302
DOI
Abstract
Research background:
ESG frameworks are gaining strategic importance within contemporary corporate environments, particularly as stakeholders and regulators increase their focus on sustainable and ethical business conduct. SMEs, despite limited resources, are increasingly expected to integrate ESG principles into operations and reporting. However, the risk of greenwashing—misrepresenting environmental responsibility—undermines the credibility of such efforts, especially in transitional economies like those of the V4 countries.
Purpose of the article:
The aim of this article is to define and quantify the impact of selected ESG factors on the likelihood of SMEs engaging in fair environmental reporting and avoiding greenwashing practices. The research explores how managerial attitudes toward ESG components influence transparency and ethical behaviour in corporate sustainability communication.
Methods:
This study used a quantitative research design based on a structured questionnaire survey conducted in February 2024 across SMEs in the Czech Republic, Slovakia, Hungary, and Poland. Data were collected via the CAWI method and evaluated using a 5-point Likert scale. A total of 1,320 firms participated, exceeding the minimum required sample size. Variables were developed to reflect key ESG dimensions, and linear regression modelling was used to test eight hypotheses related to transparency and ESG-driven behaviour. Correlation analysis was applied to assess relationships, and model significance was verified at the ɑ = 0.05 level.
Findings & Value added:
The results show that SMEs’ rejection of greenwashing is significantly influenced by their perception of climate change, use of green policies, ESG transparency, and regulatory compliance. Over 56% of the variation in environmental transparency was explained by these ESG-related factors. Contrary to frequent concerns, ESG-related costs were viewed as reasonable, indicating a shift in SME perspectives. ESG is increasingly seen as a competitive asset rather than a mere compliance burden. Firms with stronger ESG integration showed more resilience, stakeholder alignment, and access to green finance. The study contributes to economic policy by offering insights into promoting sustainability governance in SMEs. It also supports the creation of regulatory standards by revealing behavioral drivers and barriers specific to the V4 region. This research aligns with the journal’s focus on sustainable economic development, ethical business practices, and governance’s role in fostering long-term value creation.