Economic value of recovering consumers' green trust and corporations' sustainability

Purpose Most countries and companies are embracing environmental, social and governance (ESG) activities to achieve sustainability; however, it has increased corporate greenwashing promotion and raised consumer exposure to irrational statements. This study aims to provide an evidence-based framework for corporate strategic ESG investment by quantifying the economic value of activities, overcoming greenwashing issues and measuring the relative importance of each green activity. By moving beyond consumer awareness, this research provides specific managerial solutions for rebuilding consumer trust and making credible ESG commitments. Design/methodology/approach Using contingent valuation and swing weighting methods, data from 1,000 South Korean respondents are analyzed to measure willingness-to-pay (WTP) for corporate anti-greenwashing activities. The Seemingly Unrelated Regressions method in this study reveals the experimental and cognitive factors differentiating the value of each green activity. Findings Consumers are willing to pay approximately 7% additional cost on annual plastic consumption expenses to support corporate efforts against greenwashing. Preferences vary based on prior experiences and values. Environmentally friendly activities receive slightly higher support than integrity-related initiatives. Practical implications The results of this study help corporations establish environmentally friendly strategies aligned with consumer preferences and determine acceptable green product price increases. Our findings provide an evidence-based framework to counteract customers' skepticism by identifying corporate green activities as credible ESG progress and offering a clear pathway to ensure financial benefits and public trust repair. Originality/value This study moves beyond consumer-level awareness of greenwashing to provide corporate strategy insights. Quantifying the economic value of green trust recovery and identifying preferred ESG activities offer novel perspectives on developing sustainability strategies with public support.