EFFECTIVENESS OF SUSTAINABILITY AUDITS IN PREVENTING GREENWASHING PRACTICES
Mots-clés :
Sustainability Audit, Greenwashing, Audit Characteristics, Stakeholder Pressure, Regulatory Enforcement, Corporate AccountabilityRésumé
This study investigates the effectiveness of sustainability audits in preventing greenwashing practices in Nigerian firms. Using perception-based data from 212 internal and external auditors, the study assessed how audit characteristics affect the credibility of sustainability disclosures. It also examined the role of stakeholder pressure and regulatory enforcement in enhancing audit effectiveness. The results from the regression analysis showed that audit characteristics; independence, scope, and frequency significantly reduce greenwashing practices. Additionally, stakeholder pressure and regulatory enforcement enhance the impact of sustainability audits by promoting greater corporate accountability. The study concludes that well-structured sustainability audits, supported by regulatory enforcement and stakeholder scrutiny, are critical in promoting honest and transparent corporate sustainability practices. Practical recommendations are provided for firms, regulators, and stakeholder groups to improve audit structures and reduce deceptive environmental reporting in Nigeria.