Abstract

The global push for sustainable development has prompted businesses to adopt environmentally responsible practices. However, the growing concern of greenwashing—where companies project an eco-friendly image without meaningful action—remains a critical issue. This study examines greenwashing through the lens of the Theory of Planned Behavior, focusing on the gap between firms' green intentions and their actual green behaviors within the consumer packaged goods industry and its implications for firm performance and risk. While prior research has explored the relationships between green intention, green behavior, and firm outcomes separately, this study establishes the mediating role of green behavior in linking green intention to firm performance and risk. By applying the Theory of Planned Behavior, the research reveals the mechanisms through which firms can bridge this gap, emphasizing the importance of stronger control capability such as improving operational efficiency and investing in R&D to transform green intentions into tangible actions that enhance performance and mitigate risk. The findings provide both theoretical insights and practical implications for firms seeking to align their sustainability commitments with genuine action while avoiding the reputational and financial risks associated with greenwashing.