SUSTAINABILITY REPORTING BETWEEN AUTHENTICITY AND GREENWASHING: A REVIEW OF CORPORATE LEGITIMACY STRATEGIES

Abstract

This study investigates how sustainability reporting acts as a corporate legitimacy strategy and whether it reflects authentic commitment or represents greenwashing. Using a Systematic Literature Review (SLR) guided by PRISMA, thirty empirical studies published between 2019 and 2025 were synthesized through thematic coding and theoretical mapping. The results reveal that most companies adopt symbolic legitimacy strategies characterized by greenwashing practices such as selective disclosure, impression management, vague or misleading information, and CSR decoupling.  Authentic reporting that prioritizes transparency, accountability, and third-party assurance remains limited. Legitimacy Theory dominates as the primary analytical lens, reaffirming its relevance in explaining legitimacy maintenance while highlighting the need for greater theoretical diversification. Overall, sustainability reporting operates along a continuum between symbolism and authenticity, extending Legitimacy Theory toward moral and cognitive dimensions. Practically, the study underlines the need to strengthen the enforcement of existing sustainability reporting standards and to establish credible assurance mechanisms to enhance authentic disclosure, mitigate greenwashing, and strengthen stakeholder trust.