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The Impact of ESG Initiatives on Organizational Identification

The present study focuses on investigating the impact of ESG initiatives in organizations onOID among employees. With businesses looking toward long-term sustainability throughethical modes of operation, it has become important to understand how employees' feelings ofbelongingness in businesses are influenced by the ESG commitments of those industries. Thepresent research examines how employees' identification with their organization regarding itsESG efforts influences these perceptions and how the latter vary with tenure. The employees were subjected to a quantitative test through a survey questionnaire. Thesamples were made up of 120 individuals from different sectors in Sweden. The objective ofthe survey in this research was to determine the employees' perception of the ESG approach ofthe companies regarding identity with the organization. The second objective was for dataanalysis specific to identifying the relationship with the independent variables that is the ESGdimensions. A multiple linear regression was done to determine the relation of the ESGdimensions with OID. ESG dimensions on one side with OID on the other, showed a significant positive correlationof the environmental and governance. Which implied that employees who see theirorganization pursue goals regarding sustainability of the environment and socially responsiblegovernance are predisposed to the strongest identification with their organization. The socialdimension did not significantly affect OID, meaning expectations regarding socialresponsibility approximately reach high levels within the ordinary employee base. This study contributes to the existing literature by providing empirical evidence on how ESGinitiatives shape employees' perceptions and behaviours. It highlights the importance ofintegrating ESG principles into organizational strategies to enhance employee engagement andloyalty. The findings validate the claim that organizational commitment to ESG issues will bring aboutnot only a devoted and committed workforce but also success and sustainability in the longrun. Future research may look deeper into tenure, among other possible moderators, tounderstand how the effect of ESG initiatives on OID is levelled up, hence contributing furtherinsight into the high complexity of dynamics of employee identification in organizations.

Identiferoai:union.ndltd.org:UPSALLA1/oai:DiVA.org:ltu-107366
Date January 2024
CreatorsKamberi, Deniz, Henriksson, Tim
PublisherLuleå tekniska universitet, Institutionen för ekonomi, teknik, konst och samhälle
Source SetsDiVA Archive at Upsalla University
LanguageEnglish
Detected LanguageEnglish
TypeStudent thesis, info:eu-repo/semantics/bachelorThesis, text
Formatapplication/pdf
Rightsinfo:eu-repo/semantics/openAccess

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