Unsustainable Development Under Greenwashing: Exploring the Impact of Corporate Greenwashing Behavior on Employees' Negative Pro‐Environmental Behavior in China, Republic of Korea, Malaysia, and New Zealand

ABSTRACT This study aims to delve into how corporate greenwashing behavior affects employees' pro‐environmental behavior, particularly within the four representative cross‐cultural environments of China, Republic of Korea, Malaysia, and New Zealand. Utilizing survey data from 1932 valid employee samples, and employing SEM and fsQCA methods, the empirical test results indicate that: (1) Corporate greenwashing behavior leads to employees exhibiting negative pro‐environmental behavior. (2) Corporate greenwashing behavior leads to the emergence of an ethical dilemma among employees. (3) Employees' ethical dilemma leads to their exhibiting negative pro‐environmental behavior. (4) Employees' ethical dilemma plays a significant mediating role in the process through which corporate greenwashing behavior affects employees' negative pro‐environmental behavior. (5) Employees' ethical sensitivity positively moderated the impact of corporate greenwashing behavior on employees' ethical dilemma in some countries. (6) The different configurations lead to strong negative pro‐environmental behavior. This study enhances environmental management and business ethics theory, and stresses the importance of avoiding greenwashing, which can harm long‐term sustainability. It also offers practical guidance for implementing effective environmental management, ethical leadership, and sustainable practices in a globalized world.