International Journal of Sustainable Building Technology and Urban Development ISSN:2093-761X(Print) 2093-7628(Online)

Greenwashing undermines sustainable development by misleading consumers about a company’s environmental practices. Previous studies highlighted that the external environment affects corporate greenwashing in various ways. However, these studies often examined external organizational factors separately, without considering their combined impact on greenwashing behavior. This study aims to comprehensively investigate how external environmental factors influence corporate greenwashing. Grounded in the Fraud Triangle Theory, the research developed hypotheses based on an extensive literature review. Data were collected from 142 respondents via convenience sampling and analyzed using PLS-SEM within the Vietnamese construction sector. The results indicate that economic, environmental, and legal factors positively affect corporate greenwashing, whereas social factors negatively affect it. In contrast, political and technological factors were found to have no significant influence on greenwashing. This study underscores the importance of societal pressures in mitigating greenwashing and highlights the need for stricter regulations and enhanced transparency in economic, environmental, and legal domains. To address greenwashing effectively, the focus should be on strengthening regulatory frameworks and promoting accountability in these areas.