ISSN: 2225-8329
Open access
Sustainability reporting enables companies to communicate their environmental and social performance to external stakeholders. However, stakeholders often lack sufficient, comparable, and reliable information, as increased detail does not always enhance report trustworthiness. Some companies exploit this by making selective or vague claims that are difficult to verify, increasing greenwashing risk. This paper examines whether digital reporting tools, particularly cloud computing and eXtensible Business Reporting Language (XBRL), can reduce greenwashing by improving disclosure quality rather than quantity. Drawing on information asymmetry, signaling, and legitimacy theories, the study develops an integrated framework. We propose that cloud computing and XBRL enhance access, integration, standardization, and usability of sustainability data, leading to higher disclosure quality. The model demonstrates that improved disclosure quality reduces the likelihood of symbolic or opportunistic reporting. Within this framework, disclosure quality is the primary factor in preventing greenwashing by making misleading claims easier to detect. This study contributes by integrating digital tools into a unified explanation for reporting quality, identifying disclosure quality as the main barrier to corporate decoupling, and presenting a framework suited to Asia's dynamic digital and regulatory landscape.
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