Top management and employees’ commitment to sustainability as internal drivers of a company’s ESG performance

Polina Mishel Klaro Ramires, Anna Veselova

Article ID: 7009
Vol 8, Issue 10, 2024

VIEWS - 722 (Abstract)

Abstract


Social and environmental issues gain more importance for society that stimulates companies to adopt and integrate more sustainability practices into their business activities. This study is embedded in almost uncovered in the literature context of Russian business that undergoes its ESG transformation in conditions of unprecedented sanctions and hostile institutional environment. The study aims to reveal the role of internal stakeholders (top managers, line managers, and employees) in successful implementation of a company’s ESG practices along various dimensions. Using the primary data from 29 large Russian companies the fsQCA method is applied to identify various configurations of contingencies that stimulate their ESG performance. The analysis results in identification of two alternative core conditions for high ESG performance in Russian companies: high top management commitment to sustainability and low employees’ commitment to sustainability or the employees’ awareness about sustainability. At the end, the study results in two generic profiles composed of top management commitment, line management support, and employees’ awareness, behavior, and commitment towards ESG performance. The results show two different approaches towards ESG transformation that may bring a company to the comparably similar desired outcome. The study has a potential for generalization on a wider scope of emerging market contexts.


Keywords


ESG; employees’ engagement; emerging markets; fsQCA; stakeholder theory; sustainability

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References


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DOI: https://doi.org/10.24294/jipd.v8i10.7009

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