Examining the ethical consequences of misleading communication in hospitality industry greenwashing crises

Despite the growing number of greenwashing crises in the hospitality industry, there is a notable scarcity of research exploring the effectiveness of existing crisis communication strategies against such crises. This study aims to bridge this gap by investigating the impact of two commonly used misleading communication strategies – omission (omitting facts) and paltering (diverting attention with irrelevant facts) - in managing greenwashing crises. Through a moral judgment lens, this study reveals that misleading by omission leads to reduced consumer word-of-mouth than paltering, which is serially mediated by perceived ethicality and brand trust. Furthermore, this study uncovers the moderating role of information sources. It finds that the serial mediation effect exists when an environmental NGO is the greenwashing source but is non-significant when the source is a brand competitor. These findings offer valuable insights into the effectiveness of crisis management strategies and their ethical implications in managing hospitality greenwashing crises.