Purpose and Authenticity: Unlocking Trust and Avoiding Greenwashing in ESG Initiatives

Over the past 30 years, public companies have faced increasing regulation of their internal operations, growing scrutiny of individual behavior, and rising demands for taxes and social contributions. But why?

It’s a question that board members, executives, employees, subcontractors, and everyone involved in business may ask - sometimes as a genuine inquiry, sometimes
as a frustrated claim.

Public companies are uniquely positioned to answer this question: because most, if not all, of the money they manage belongs to investors. These investors are typically not part of the decision-making teams. They have no direct visibility or influence over the company’s day-to-day life. This explains the need for financial regulation, and even extends to anti-bribery laws, FCPA compliance, and anti-money laundering frameworks.

But what about ESG

Many companies are being criticized for greenwashing - investing in or promoting environmental causes while simultaneously causing real harm to the environment through their core operations. Others have abandoned their ESG commitments when faced with regulatory or financial pressure.

So, what should companies do?

My career - and my conviction - has been built around the same advice I offer to companies today: go back to the basics. Rediscover your purpose. Revisit your foundation.

Most companies will say their purpose is to generate profit or drive growth. But beneath those goals, there is often something deeper. In my experience working with both public and private companies, local and international, I’ve never encountered a company whose purpose was to destroy. On the contrary, the path to creation almost always includes an additional, often unspoken, purpose:

• To build the best homes.

• To eliminate fatalities caused by our vehicles.

• To provide services that meet essential human needs.

These are not just marketing slogans - they are the seeds of authenticity.
And authenticity is the antidote to greenwashing.

If companies can reconnect with their true purpose and align their ESG initiatives with that purpose, they will not only avoid reputational risk—they will build trust, resilience, and long-term value.

When I’ve had to make decisions about my own path, I’ve always returned to that same practice: find my purpose and take an authentic approach. Authenticity matters. It’s not just about good intentions—it’s about defining your boundaries clearly.

Often, words are so big that they include so much, making their full achievement nearly impossible. That’s why lawyers spend so much time arguing and refining terms. You cannot seriously found a company to build roads and simultaneously claim your purpose is to be the most environmentally friendly company in the world. But you can love civil engineering, and as part of that love, be convinced that it can be done better - with less impact on the soil and the environment. That’s where purpose lives. And being authentic about it is not greenwashing.

Risk alert: You must communicate that purpose clearly. It needs to be understood, embraced, and reflected throughout your organization. It must be translated into your corporate life- into decisions, operations, and culture.

Purpose is not a slogan. It’s a compass. And when aligned with authenticity, it becomes the most powerful tool a company can have - not just to avoid greenwashing, but to build trust, resilience, and long-term value.

Additional Benefits Alert:

When, as an entrepreneur, you manage to align your business with your purpose in an authentic way, you’ll discover that many ESG initiatives become not only feasible - but also easy, cost-effective, and even profitable. You’ll notice a rise in employee and customer loyalty, and you won’t need billion-dollar marketing strategies to communicate your goals. Why? Because your goals will be naturally embedded in your products, your services, and your company’s everyday life.

Authenticity resonates. When your purpose is clear and genuinely lived, it speaks louder than any campaign - and builds trust that lasts.

About the author

Karina Hernandez is the Legal Director and Compliance Officer at Newrest Mexico.
She has over 20 years of experience in law, business, and compliance, advising Fortune 500 companies and global leaders in highly regulated industries. Throughout her career, she has transformed traditional legal departments into strategic business allies, generating tangible value by turning perceived cost centres into engines of purpose, efficiency, and impact.

Recognised as In-house Lawyer of the Year by The Legal 500 (2024) and for leading an award-winning ESG-LEGAL team (2025), Karina brings expertise in corporate governance, ESG strategy, regulatory compliance, M&A, and cross-border negotiations. Her leadership is defined by conviction rather than regulation, with a strong focus on aligning corporate life with authenticity and purpose.

She holds an LLM from Northwestern University, an international certification in Ethics and Compliance, and a Master’s in Business Law from Universidad Panamericana.