The Effect of Selective Disclosure on Employee Evaluations

• DOI: 10.5465/ambpp.2022.14564abstract
• Publication Date: 2022-07-06T15:16:00Z
• Authors: Navya Pandit; Anne Jacqueminet; Christiane Bode
• Keywords: Greenwashing

In response to simultaneous pressures for greater environmental performance and transparency, firms may selectively disclose information on their footprint, a form of greenwashing. Companies employ this strategy primarily manage the impressions external audiences in hope that they do not uncover reality. We argue contrast audiences, employees due being internal members firm, possess superior about firm making it difficult such strategies be successful. work, we investigate how selective disclosure affects specifically employee evaluations. utilize exogenous variation incentives impacts provided by swinging traditionally democratic election states 2016 US presidential elections as basis our empirical strategy. Our analyses suggest negatively firm’s ratings, because react unfavourably lack transparency negative impact is independent from detecting disclosure. These results produce important implications hidden human capital costs associated with