ArticlePDF Available

A Greener Company Makes for Happier Employees More so than Does a More Valuable One: A Regression Analysis of Employee Satisfaction, Perceived Environmental Performance and Firm Financial Value

Authors:

Abstract

This paper tests two hypotheses. The first hypothesis is that employee satisfaction is positively impacted when a company is perceived as performing well environmentally. The second hypothesis is that employee satisfaction is positively impacted by firm financial performance. To test these hypotheses, the relationships between perceived environmental performance, financial performance and employee satisfaction were tested using regression analysis. The results indicate a significant positive relationship between employee satisfaction and level of perceived environmental performance. This study does not find a significant relationship between employee satisfaction and firm financial value. The practical implication for managers is that investments in environmental performance and related communications are important for reasons beyond those that are more commonly discussed, such as external stakeholder relations. This study suggests that environmental performance and related communications should be an integral part of human resources management strategies to recruit, motivate and retain the best talent. For scholars, this study suggests future directions for research in, for example, determining the causal mechanisms between actual environmental performance, perceptions of relative environmental performance and employee satisfaction.
Electronic copy available at: http://ssrn.com/abstract=1521745
A Greener Company Makes For Happier Employees More So Than Does a More Valuable
One: A Regression Analysis of Employee Satisfaction, Perceived Environmental Performance
and Firm Financial Value
Cassandra Walsh
B.S. Honors Program Graduate
Department of Management and Marketing
Charlton College of Business
University of Massachusetts Dartmouth
285 Old Westport Road
North Dartmouth, MA 02747
cwalsh@umassd.edu
Adam J. Sulkowski
Assistant Professor of Business Law
Department of Management and Marketing
Charlton College of Business
University of Massachusetts Darmouth
285 Old Westport Road
North Dartmouth, MA 02747
asulkowski@umassd.edu
The authors gratefully acknowledge the assistance and contributions of Mr. Jonathan Barboza, Mr.
Scott Cotreau, and Dr. D. Steven White in the preparation of this manuscript.
Electronic copy available at: http://ssrn.com/abstract=1521745
A Greener Company Makes For Happier Employees More so than Does a More Valuable
One: A Regression Analysis of Employee Satisfaction, Perceived Environmental Performance
and Firm Financial Value
Abstract
This paper tests two hypotheses. The first hypothesis is that employee satisfaction is positively
impacted when a company is perceived as performing well environmentally. The second hypothesis
is that employee satisfaction is positively impacted by firm financial performance. To test these
hypotheses, the relationships between perceived environmental performance, financial performance
and employee satisfaction were tested using regression analysis. The results indicate a significant
positive relationship between employee satisfaction and level of perceived environmental
performance. This study does not find a significant relationship between employee satisfaction and
firm financial value.
The practical implication for managers is that investments in environmental performance and
related communications are important for reasons beyond those that are more commonly discussed,
such as external stakeholder relations. This study suggests that environmental performance and
related communications should be an integral part of human resources management strategies to
recruit, motivate and retain the best talent.
For scholars, this study suggests future directions for research in, for example, determining the
causal mechanisms between actual environmental performance, perceptions of relative
environmental performance and employee satisfaction.
A Greener Company Makes For Happier Employees More so than Does a More Valuable
One: A Regression Analysis of Employee Satisfaction, Perceived Environmental Performance
and Firm Financial Value
Introduction
How do employees’ perceptions of a company's environmental and financial performance
impact their level of job satisfaction? To date, scant research exists on the topic, and the direction
and significance of the relationship between the variables remains unclear. Common sense may lead
one to believe that employees who place value on environmental performance may be happier
working for companies whose perceived performance in this area is congruent with their beliefs.
Likewise, employees satisfaction may be related to a firm's financial value: employees of firms
with solid financial performance may be more satisfied with their jobs than are employees of firms
with mediocre financial performance. The purpose of this project is to simultaneously investigate
the impact of both perceived environmental performance and firm financial value on the level of
employee satisfaction.
Literature Review
Perceived environmental performance
There are many ways to go about determining environmental performance. One way to
define an entity's environmental performance is environmental efficiency; for example, taking a
measure of an entity's environmental impact and dividing that measure by a denominator that
reflects either units of economic activity or population or financial performance (Sulkowski and
White, 2010).
No matter how it is defined, actual environmental performance could differ from perceived
environmental performance. For purposes of this paper, the authors define perceived environmental
performance as the collective reputation of a company among stakeholders, including, but not
limited to, customers, employees and members of society in general. This definition closely matches
that of Vanno, a company reputation ranking service. Vanno gauges relative company reputations
using a Bayesian algorithm that relies upon the collective commentary, numerical scoring and
voting of thousands of stakeholders on several specific topics (Vanno, 2008). To estimate relative
reputations for environmental performance, Vanno relies on stakeholder input regarding various
aspects of companies' environmental performance, including efforts related to pollution reduction
and recycling, clean and renewable energy usage, sustainability, and conservation and
preservation. A further elaboration of Vanno's methodsof determining perceived environmental
performance is in the data sources section below.
Possible links between employee satisfaction, ethics and Corporate Responsibility (CR) reporting
A widely-cited definition of job satisfaction is “the pleasurable emotional state resulting
from the appraisal of one's job as achieving or facilitating the achievement of one's job values,”
(Locke, 1969). Valentine and Fleischman (2008) define employee satisfaction as "improved job
attitudes, increased productivity, and reduced turnover".
A connection has been postulated and tested between the ethical environment of companies
and their employees' satisfaction (Schwepker, 2001). Schwepker mentions environmental
performance as one aspect of a company’s ethical atmosphere, which is shown to be “positively
related to job satisfaction and organizational commitment”; questionnaire data and statistical
analysis indicate that “creating such a climate [of high ethical standards] may have additional
benefits such as greater job satisfaction, stronger organizational commitment, and subsequently
lower turnover intentions”. An additional study by Valentine and Fleischman (2008) that involved
both survey data and regression analysis revealed that “ethics codes, training, and perceived CSR
[corporation social responsibility] are positively associated with employee satisfaction”.
Likewise, a connection between CR reporting and employee satisfaction has been postulated
as well. Increasingly, firms communicate facts and narratives related to their environmental
performance to stakeholders through CR reports. Studies have supported the theory that CR
reporting, which discusses, among other things, the environmental initiatives and performance of
firms, has a great impact on employee satisfaction; and, when effectively executed, a company's CR
report has the potential to positively increase the satisfaction of its employees (Valentine and
Fleischman, 2008; Lee et al., 2008). This connection is discussed in further detail in the discussion
section below.
Managers also perceive a link between the perceived responsibility of a company and
employee satisfaction; KPMG's 2005 survey of senior executives at 1600 companies in sixteen
different countries found that roughly 50 percent of respondents "listed employee motivation as their
driver for CR behavior, which is an indication of the 'war for talent' which is increasingly important"
(KMPG, 2005). In the next KPMG survey on corporate social responsibility in 2008 (in which
executives from 2200 companies in twenty-two countries participated), an even larger percentage of
respondents - 52 percent - identified employee motivation as a driver (KPMG, 2008). Other
characteristics of the internal working environment of a company were also commonly identified as
drivers of CR behavior; 55 percent indicated that innovation and learning was a key driver and 69
percent claimed that ethical considerations drive CR practices (KMPG, 2008). Therefore,
practitioners' perceptions mirror the previously cited academic literature suggesting that CR
behavior is at least partly driven by its impact on employees, and that CSR and CR reporting may
conversely impact employee satisfaction. Environmental performance is one subset of CSR
activities, and one aspect of company performance that is described in CR reporting.
Based on the foregoing literature review, the following hypothesis is proposed:
Hypothesis 1: The perception of better environmental performance leads to higher employee
satisfaction
Firm Financial Performance
Tobin’s q
The most common proxies for firm value include ROE (return on equity), ROA (return on
assets), P/E (price/earning) ratio, EPS (earnings per share) and Tobin’s q. Tobin’s q, the ratio of the
market value of a firm's shares to the replacement costs of its assets, is a financial performance
indicator that links company stock and equity value (Chamberlin and Yueh, 2006). Lang and Stulz
(1994) argue that Tobin’s q serves as the best proxy for firm value when making comparisons
between firms because accounting measures or the application of other ratios based on stock return
requires risk-adjustment or normalization. Tobin's q has been used in other studies where the relative
value of firms was one of the variables being compared (Wei et al., 2010).
Consistent with the definition used by Lang and Stulz (1994), Chung and Pruitt (1994) offer
a simplified Tobin’s q model which yields similar results but depends on fewer financial variables.
The simpler means of calculating Tobin’s q is as follows:
q = (MVE + PS + DEBT)/TA
where MVE is the product of share price and the number of common stock shares outstanding, PS is
the liquidating value of outstanding preferred stock, DEBT is the value of the firm's short-term
liabilities net of its short-term assets plus the book value of the long term debt, and TA is the book
value of the total assets.
A relationship between financial performance and employee satisfaction has been debated in
both academic and practitioner-oriented journals. Many works postulate or present data that
indicates that employee satisfaction and firm financial performance are linked, with some authorities
such as Deming (1986) and Juran (1989) drawing this connection without qualification, others
cautioning against taking too simplistic an approach to a complex set of interacting factors (Ledford,
1999) and still others providing evidence that the relationship is highly dependent on context
(Silvestro, 2002). While Grant (1998) points to data that indicates a connection between worker
attitudes and financial performance, Lockhart and Ellis (1998) question the relationship.
Based on the foregoing literature review, the following hypothesis is proposed:
Hypothesis 2: Better financial performance leads to higher levels of employee satisfaction.
Methodology
Linear regression is selected as the method of statistical analysis. A regression equation
determines the association between metric or continuous dependent variables and metric or
continuous independent variables. The R statistical package module for generalized linear models
was used to perform the analysis. Employee satisfaction is the dependent variable and perceived
environmental performance and firm financial performance are independent variables. Thus, the
linear regression for this study is illustrated in the formula:
y = a + b1x1 + b2x2 + e
Data sources
The sample population includes all companies in the Standard & Poor's 250 that engaged in
CR reporting. This resulted in sample of 113 companies. Tobin's q was calculated using publicly
available financial data provided by companies in their annual financial statements.
The source of data for employee satisfaction and perceived environmental responsibility was
Vanno (2008). Vanno uses a scoring algorithm based on Bayesian statistical methods to compute
their rankings of companies. Bayes’ theorem is a well-trusted mathematical tool used to calculate
probabilities and is often applied in the medical field (Yudkowsky, 2006). Used correctly, the
Bayesian method can statistically determine the probabilities of many factors. The difference
between Bayes’ theorem and other methods is that Bayes’ theorem goes a step further by not only
testing the variables related to a hypothesis, but also testing the likelihood of the hypothesis itself
(Los Alamos Center for Bayesian Methods, 2002).
Vanno's measures of employee satisfaction and perceived environmental performance are
based on individuals posting online opinions and news stories on several sub-topics, with various
levels of opinion-makers then voting on whether they agree or disagree with posts. These pieces of
user input together determine a score of a company on a sub-topic. The combined scores on these
various sub-topics together are the basis for a score of employee satisfaction and environmental
performance, as well as community involvement, customer satisfaction, patriotism and social
responsibility.
The sub-topics that together determine environmental performance are: anti-pollution
measures and recycling, clean and renewable energy usage, sustainability, and conservation and
preservation. The sub-topics that determine employee satisfaction include compensation,
coworkers, diversity, job satisfaction and management. Basing firms' scores on thousands of items
of user input and multiple sub-topics increases the probability that Vanno's algorithm generates an
accurate reflection of company reputation on any given measure.
Results
The results of our study confirm our first hypothesis by revealing that there is a significant
positive relationship between perceived environmental performance and employee satisfaction. With
a T-value of 6.426, one can say with 99.9 percent confidence that the relationship exists as
hypothesized. Conversely, the statistical testing does not find a significant relationship between firm
financial performance and employee satisfaction.
Discussion
The results indicate that better perceived environmental performance positively impacts the
satisfaction of the firm's employees, while firm value in this context provides no significant impact.
Previous literature provides clues as to possible explanations for the observed results.
Bernhardt et al. (2000) provide both evidence and a review of theories that corroborates and helps to
understand the apparent lack of connection between firm value and employee satisfaction. Some
authors have posited that “frequently, worker satisfaction data are reflected in unit profitability”
(Schneider, 1991: p. 154), and others have found evidence for this relationship (Paradise-Tornow,
1991), which seems logical given a presumption that satisfied workers are more motivated and
therefore more productive than dissatisfied employees (Bernhardt et al., 2000). However, Tornow
and Wiley (1991) found a consistent negative relationship in cross-sectional studies of
measurements of employee satisfaction - including pay and benefits - and gross profit. Wiley (1991)
concluded that a relationship between overall satisfaction of employees and financial performance
was “virtually nonexistent". Bernhardt et al. (2000) build on this previous work with evidence from
their longitudinal study demonstrating a lack of connection between employee satisfaction and
financial health of business units. Put another way, while sometimes happier employees may be
more productive, there could be an inverse relationship when a company displeases employees with
cuts in benefits as it seeks to maximize profits.
Stakeholder engagement theory and the phenomenon of CR reporting helps to understand the
power of perceived environmental performance in producing happier employees. The authors
suggest that CR reporting may play a crucial mediating influence in shaping employee perceptions,
which would help to understand the dramatic link between perceived environmental performance
and job satisfaction. Kolk (2008) notes that, "While originally focused primarily on the
environment, the scope [of CR reporting] has broadened to frequently also include ethical/social
issues, usually employee and community matters". Especially in light of this observation, it is
conceivable that companies that report more on environmental performance also expend greater
effort reporting on their efforts to improve employee satisfaction, and that this explains the
connection between perceived environmental performance and worker satisfaction. The precise
means by which perceived and actual environmental performance impacts employee satisfaction is
beyond the scope of the present study but is a promising area for future research.
Stakeholder engagement is commonly defined as “the process of seeking stakeholder views
on their relationship with an organization in a way that may realistically be expected to elicit them”
(Gao and Zhang, 2006; ISEA, 1999). Engaging employees helps to create a mutual understanding
between businesses and the people that work for them, further increasing employee satisfaction;
engagement is often carried out through certain methods of communication, and CR reporting is one
commonly used tool (Gao and Zhang, 2006). It is therefore not surprising that ethics codes and CR
reporting impact levels of employee satisfaction (Valentine and Fleischman, 2008). Sumner (2005)
notes that "company's corporate responsibility activities are playing a major part in how people view
their employer" and how satisfied they are with their employer overall. Recent regression tests
confirm that employee satisfaction is impacted by CR reporting (Lee et al., 2009).
While CR reporting can clearly be used as a tool for bona fide communication of
environmental performance data to employees, it can obviously be used as a means to deliberately
manipulate perceptions as a means for attaining competitive advantage and better productivity. The
connection between CR reporting and productivity has been explored by several authors. CR
reporting has been linked to employee loyalty, morale, and productivity (McWilliams and Siegel,
2001). Turban and Greening (1997) demonstrated that companies with a positive external reputation
were more likely to attract higher-potential employees, further providing competitive advantage.
According to Moskowitz (1972) and Parket and Eibert (1975), firms that satisfy employee demand
for CR may experience increased loyalty, morale, and productivity. In addition, it has been
suggested that employee perceptions of CR will positively impact an employees perception of
organizational attractiveness, job satisfaction, organizational commitment, citizenship behavior and
performance (Rupp et al., 2006).
This last set of observations - that CR reporting can be used as a tool for improving
productivity and company performance - begs the question of whether, by creating happier
employees, perceived environmental performance will eventually correlate with company value.
This study shows that a more valuable company does not result in more satisfied employees, but a
greener company leads to happier employees, which, in turn, potentially may benefit the company.
Limitations and Conclusion
It is important that the limitations within our study are acknowledged. It is possible that data
reflecting a longer period of time may produce different outcomes. Also, the same regression test
using alternative measures of firm value and/or financial and/or perceived environmental
performance and/or employee satisfaction may result in different outcomes. A study using data that
reflects actual environmental performance rather than perceived environmental performance could
lead to different outcomes. And for simplicity, the interaction effect between perceived
environmental performance and firm financial value is not addressed.
The results of this study suggest a strong relationship whereby better environmental
performance results in more satisfied employees. Put another way, having a reputation for being a
relatively more environmentally-friendly company can result in having happier employees. The
study found no evidence of a significant relationship between employee satisfaction and firm
financial value. Thus, within this sample, being a more highly valued firm does not significantly
impact the satisfaction of employees.
The practical implication for managers is that investments in environmental performance and
related communications have added significance to a company’s ability to recruit, motivate and
retain the best talent. Therefore, communications about environmental performance should be
considered as part of comprehensive human resources management strategies.
This study suggests future directions for research in, for example, determining the precise
means that actual environmental performance and perceived environmental performance impact
employee satisfaction. CR reporting may be the medium that shapes employees’ and potential
employees’ perceptions of company environmental performance. Thus, CR reporting and its drivers
and impacts, and specifically its value in the realm of human resources management, may be one
fruitful vein of future research.
References
Bernhardt, Kenneth L., Naveen Donthu and Pamela A. Kennett (2000), "A Longitudinal Analysis of
Satisfaction and Profitability", Journal of Business Research, Vol. 47, No. 2, pp. 161-171.
Chamberlin, Graeme and Linda Yueh (2006), Macroeconomics. London: Thomson Learning.
Chung Kee H., and StephenW. Pruitt (1994), "A Simple Approximation of Tobin’s Q", Financial
Management, Vol. 23, No. 3, pp. 7074.
Deming, W. Edwards (1986), Out of the Crisis. Cambridge: Massachusetts Institute of Technology.
Gao, Simon S., and Jane J. Zhang (2006), "Stakeholder Engagement, Social Auditing and Corporate
Sustainability", Business Process Management Journal, Vol. 12, No. 6, 722-740.
Grant, Linda (1998), "Happy Workers, High Returns", Fortune, Vol. 137, No. 1, p. 81.
Institute of Social and Ethical AccountAbility (ISEA) (1999), AccountAbility 1000 (AA1000)
Framework: Standard, Guidelines and Professional Qualification. London: ISEA.
Juran, Joseph M. (1989), Juran on Leadership for Quality: An Executive Handbook. New York, NY:
The Free Press.
Kolk, Ans (2008), "Sustainability, Accountability and Corporate Governance: Exploring
Multinationals' Reporting Practices", Business Strategy and the Environment, Vol. 17, No. 1,
pp. 1-15.
KPMG (2005), KPMG International Survey of Corporate Responsibility Reporting 2005,
Amsterdam: KPMG Global Sustainability Services.
KPMG (2008). KPMG International Survey of Corporate Responsibility Reporting 2008,
Amsterdam: KPMG Global Sustainability Services.
Lang, Larry H.P. and Rene M. Stulz (1994), " Tobin’s Q, Corporate Diversification, and Firm
Performance", Journal of Political Economy, Vol. 102, No. 6, pp. 12481280.
Ledford, Gerald E. Jr. (1999), "Comment: Happiness and Productivity Revisited" Journal of
Organizational Behavior, Vol. 20, No. 1, pp. 25-30.
Lee, Tzai-Zang, Ming-Hong Ho, Chien-Hsing Wu, Shu-Chen Kao (2008), "Relationships between
Employees’ Perception of Corporate Social Responsibility, Personality, Job Satisfaction, and
Organizational Commitment Marketing", Proceedings of the International Conference on
Business and Information (BAI), Kuala Lumpur, Malaysia, 6-8 July, pp. 1-17.
Locke, Edwin A. (1969), "What is Job Satisfaction?" Organizational Behavior and Human
Performance, Vol. 4, pp. 309-336.
Lockhart, Dan and Jeff Ellis (1998), "Happy Workers, High Returns? It's More Complex",
Marketing News, Vol. 32, No. 11, p. 9.
Los Alamos Center for Bayesian Methods (2002), What is Bayesian Inference?
http://drambuie.lanl.gov/~bayes/tutorial.htm.
McWilliams, Abagail and Donald Siegel (2001), "Corporate Social Responsibility: A Theory of the
Firm Perspective", The Academy of Management Review, Vol. 26, No. 1, pp. 117-127.
Moskowitz, Milton R. (1972), "Choosing Socially Responsible Stocks", Business & Society
Review, Vol. 1 (Spring), pp. 71-75.
Paradise-Tornow, Carol A. (1991), "Management Effectiveness, Service Quality and Organizational
Performance in Banks", Human Resource Planning, Vol. 14, No. 2, pp. 129139.
Parket, I.R., & Eibert, H (1975), "Social Responsibility: The Underlying Factors", Business
Horizons, Vol. 18, No. 4, pp. 5-10.
R Development Core Team (2009), R: A Language and Environment for Statistical Computing.
Vienna, Austria.
Rupp, Deborah E., Jyoti Ganapathi, Ruth V. Aguilera and Cynthia A. Williams (2006), "Employee
Reactions to Corporate Social Responsibility: An Organizational Justice Framework",
Journal of Organizational Behavior, Vol. 27, No. 4, pp. 537-543.
Schwepker, Charles H. (2001), "Ethical Climate's Relationship to Job Satisfaction, Organizational
Commitment, and Turnover Intention in the Salesforce", Journal of Business Research, Vol.
54, No. 1, pp. 39-52.
Schneider, Benjamin (1991), "Service Quality and Profits: Can You Have Your Cake and Eat It
Too?" Human Resource Planning, Vol. 14, No. 2, pp. 151157.
Silvestro, Rhian (2002), "Dispelling the Modern Myth: Employee Satisfaction and Loyalty Drive
Service Profitability", International Journal of Operations & Production Management, Vol.
22, No. 1, pp. 30-49.
Simmons, John (2003), "Balancing Performance, Accountability and Equity in Stakeholder
Relationships: Towards More Socially Responsible HR Practice", Corporate Social
Responsibility and Environmental Management, Vol. 10, No. 3, pp. 129-140.
Sulkowski, Adam J. and White, D. Steven (2010 forthcoming), "Financial Performance, Pollution
Measures and the Propensity to use Corporate Responsibility Reporting: Implications for
Business and Legal Scholarship", Colorado Journal of Environmental Law and Policy, Vol.
21, No. 3.
Sumner, Jason (2005), "Employees - Your Most Important Stakeholders", Corporate Responsibility
Management, Vol. 1, No. 5.
Tornow, Walter W. and Jack W. Wiley (1991), "Service Quality and Management Practices: A
Look at Employee Attitudes, Customer Satisfaction, and Bottom-Line Consequences."
Human Resource Planning, Vol. 14, No. 2, pp. 105-115.
Turban, Daniel B. and Daniel W. Greening (1997), "Corporate Social Performance and
Organizational Attractiveness to Prospective Employees", The Academy of Management
Journal, Vol. 40, No. 3, pp. 658-672.
Valentine, Sean and Gary Fleischman (2008), "Ethics Programs, Perceived Corporate Social
Responsibility and Job Satisfaction", Journal of Business Ethics, Vol. 77, No. 2, pp. 159-
172.
Vanno (2008), The Company Reputation Index. http://www.vanno.com/
Wei, Lu, Wenjun Wang, Adam Sulkowski and Jia Wu (2010 forthcoming), "The Relationships
between Environmental Management, Firm Value and Other Firm Attributes: Evidence from
Chinese Manufacturing Industry", International Journal of Environment and Sustainable
Development.
Wiley, Jack W. (1991), "Customer Satisfaction: A Supportive Work Environment and Its Financial
Costs" Human Resource Planning, Vol. 14, No. 2 , pp. 117127.
Yudkowsky, Eliezer (2006), An Intuitive Explanation of Bayesian Reasoning.
http://yudkowsky.net/rational/bayes.
... Fourth, excellent research questions were provoked by working on the sustainability reports, including questions that later turned into a student thesis and published research articles in peer-reviewed publications (Walsh and Sulkowski, 2010). ...
... To optimize benefits, including furtherance of adoption of sustainable practices, it is advisable to dovetail practice and learning with a research-and-publication agenda. Several research questions and articles were directly inspired by these experiential learning projects (Walsh and Sulkowski, 2010). ...
... Ancak bu bağın oluşturulması, sürdürülmesi ve güçlendirilmesi için örgütlerin özel çaba göstermesi ve buna yatırım yapması gerekir. Bu çaba ve yatırımların sonucunda oluşan kurumsal itibar, nitelikli çalışanları örgüte çekme ve örgütte tutma (Tsai & Yang, 2010), işe ve örgüte bağlılık (Freund, 2006), iş tatmini (Walsh & Sulkowski, 2010) ve örgütsel kimlik (Deniz, 2020;Helm, 2011) gibi istenen sonuçları pozitif yönde, işten ayrılma niyeti ve devamsızlık gibi istenmeyen sonuçları negatif yönde (Deniz, 2020) etkilemektedir. Özellikle nitelikli çalışanların kurumsal itibara atfettiği değerin daha fazla olduğu ve kurumsal itibarın, nitelikli çalışanların işe ve örgüte bağlılıklarını daha fazla etkilediği ileri sürülmüştür (Fuller, Hester, & Barnett, 2006). ...
Article
It has been frequently stated in the literature that workload and stress negatively affect employees' attitudes and behaviors and that stress has a mediating effect on the relationship between workload and work attitudes and behaviors. However, in these studies, the mechanism by which the impact of workload and stress on attitudes and behaviors emerge and the role of organizational-level variables such as corporate reputation in the relationship has been relatively neglected. Studies show that workload does not always lead to negative results. With this research on defense industry employees, the relationship between workload, stress, and work commitment and the moderator role of corporate reputation in this relationship was investigated. The data collected from 310 employees by the survey method were first subjected to confirmatory factor analysis, and then the hypotheses of the regulatory mediator model, which is the research model, were tested with PROCESS MACRO. The research findings confirmed the stressor role of workload and the mediator role of stress between workload and work commitments. It has also been found that corporate reputation moderates the relationship between workload and stress, and workload and work commitment. One of the essential findings of the study is the positive relationship between workload and work commitment. These results were discussed by comparing them with the findings in the literature, and their contributions to researchers and practitioners were evaluated.
... Tourism companies must compete for the best professionals [79]. Green practices increase employee satisfaction and productivity [80,81]. A green company is more attractive and generates higher levels of satisfaction and commitment in its employees and this is fundamental for the hotel sector (in the way of WBE [10]). ...
Article
Full-text available
This paper presents an overview on political economy and economic policies into the European Green Deal framework and the Spanish recovery plan, with special attention to the tourism sector and actual opportunities for green jobs in the Spanish tourism market. Firstly, there is a literature review, combining the scientific production with professional and institutional literature, to understand the topic development, from the former restrictive point to the wider current view. Secondly, a case study about the green jobs opportunity in the Spanish hotel industry is presented, taking into account wellbeing economics, for the renewal of the Spanish tourism industry. Methodology combines the qualitative analysis of literature and the qualitative review of the CSR reports from top Spanish hotel chains as well as the feedback of sustainability experts at the hotel industry. This paper provides valuable information to improve the sectorial recovery plan and coordinate the policymakers and the business managers and entrepreneurs.
... Tourism companies must compete for the best professionals [82]. Green practices increase employee satisfaction and productivity [83,84]. A green company is more attractive and generates higher levels of satisfaction and commitment in its employees and this is fundamental for the hotel sector (in the way of WBE [10]). ...
Preprint
This is a paper on Political Economic and Economic Policies into the European Green Deal framework and the Spanish recovery plan, with special attention to the tourism sector. First, there is a literature review, combining the scientific production with professional and institutional literature, to understand the topic development, from the former restrictive point to the current view at large. Second, it is offered a case study about the green jobs opportunity, according to wellbeing economics, for the Spanish tourism sector renewal. The paper provides valuable information to improve sectorial recovery plan, to coordinate the policymakers and the business managers and entrepreneurs.
... Regarding environmental performance, Berber et al. (2019) pointed out that there are positive correlations between the existence of a human resources strategy and CSR statements with the environmental performance levels of the organization. Walsh and Sulkowski (2010) found that there is a significant positive relationship between employee satisfaction and the level of perceived environmental performance. Also, based on the data from 183 supervisor-subordinate dyads employed in casinos and hotels in Guangdong China and Macau, Tian and Robertson (2019) found that employees' CSR perceptions indirectly affect their engagement in voluntary pro-environmental behavior through organizational identification. ...
Article
Full-text available
The goal of the research was to explore and determine the relationships between CSR related to employees and business and environmental performance. The authors conducted field research on the territory of Autonomous Provence of Vojvodina, Republic of Serbia in the period from October 2019 until the end of March 2020 to collect the data from business organizations on their CSR activities and organizational outcomes. The research is conducted as a part of a one-year research project funded by the Provincial Secretariat for Higher Education and Scientific Research of Autonomous Province of Vojvodina for 2019. To explore these relations, there has been performed PLS analysis in the statistical software Smart PLS 3.
... The dependent variable was financial performance, measured through ROA, ROE, and Tobin's Q. Numerous studies show that these variables are the most used when measuring financial performance [82][83][84][85][86]. ...
Article
Full-text available
The objective of this work was to research the impact of environmental, social, governance, and controversies (ESGC) indicators on financial performance. We used a sample of financial and nonfinancial business data from international countries for 2017 obtained through the Thomson Reuters environmental, social, and corporate governance (ESG) database. The company participants in the study belong to the tourism sector and are listed on international stock market indices. The methodology used was based on parametric and nonparametric statistical tests. Evidence supports that governance practices significantly influence financial performance. The contribution of the study is two-fold—from a theoretical perspective, it adds to the existing literature and, from an empirical point of view, we developed ESGC indicators and their relationship with financial performance using a binary regression logistic model, with results that can be applied to an international tourist perspective.
... In our quantile regression models, we use Tobin's q, which is a proxy for sustainable corporation growth and value, as the dependent variable. In theory, Tobin's q is measured by t scal year of the fi at the end of assets ute value by substit ets lue of ass market va  (9) However, as an exact measurement of the substitute value of total assets is very unrealistic, we follow the measurement of it q as suggested by References [35][36][37][38]. Therefore, the Tobin's q value used in this study is measured by the market value (i.e., book value of liabilities + market value of equity capital) of assets at the end of year ( t ) divided by the book value of assets (i.e., book value of liabilities + book value of equity capital). ...
Article
Full-text available
This study explores the relationship between Korean listed companies’ corporation social responsibility (CSR) activities and their sustainable growth and valuation, focusing specifically on the nonlinear aspect. The nonlinear quantile regressions used in this study reported that CSR activities increased corporation value exclusively in the middle-range groups (i.e., τ_25, τ_50, τ_75) of Tobin’s q, a proxy for corporation growth and value. However, the linear ordinary least squares (OLS) regression did not indicate similar results. Our findings also showed that CSR activities affect the valuation of Korean listed corporations in a nonlinear, rather than in a linear way. Considering that most prior studies are devoted to reporting linear results from classical ordinary least squares estimations between CSR activities and corporation value, our study fills the gap in the literature. The findings of this study may provide corporation managers and researchers with valuable data concerning a corporation’s optimal investment point for their CSR activities for sustainable growth and the maximization of corporation value.
... 127 As recent data security breaches in the private and public sectors have highlighted, cyber-security breaches are costly and damaging and should be more openly and proactively addressed by both managers and lawyers, rather than reacting in crisis mode. 128 Scholarship of sustainability reporting and its drivers and impacts has advanced in recent years; for example, a causative link has been demonstrated between having a green reputation and having satisfied employees, 129 and between firm size and age and propensity to disclose ESG information, 130 but many questions still await answers. For example, under what conditions does sustainability reporting contribute to stakeholder dialogue that results in "win-win" solutions for the firm and those who experience side effects created by the firm, and what are the optimal roles for attorneys in that process? ...
Chapter
Carbon management is about understanding how and where an organization’s activities generate greenhouse gas emissions, in order to then minimize these emissions in an ongoing and financially sustainable way. It extends from internal activities to the consumption of an organization’s products or services and, ultimately, is about incorporating an understanding of carbon data into strategic business decision-making. There are four key points in understanding the definition of carbon management.
Chapter
Was bedeuten Begriffe wie Nachhaltigkeit, CSR und Corporate Sustainability im Unternehmensalltag und welche operativen Anknüpfungspunkte in der Industrie existieren, die wirklich wirksam sind? In diesem Kapitel wird anhand verschiedener Nachhaltigkeitkonzepte herausgearbeitet, welche Herausforderungen und Chancen für Unternehmen bestehen, die sich mit dem Thema Ressourceneffizienz nicht nur aus direkten Kostengründen beschäftigen wollen, sondern es als strategisches langfristiges Potenzial erkannt haben.
Article
Full-text available
Drawing on propositions from social identity theory and signaling theory, we hypothesized that firms' corporate social performance (CSP) is related positively to their reputations and to their attractiveness as employers. Results indicate that independent ratings of CSP are related to firms' reputations and attractiveness as employers, suggesting that a firm's CSP may provide a competitive advantage in attracting applicants. Such results add to the growing literature suggesting that CSP map provide firms with competitive advantages.
Article
Companies offer ethics codes and training to increase employees’ ethical conduct. These programs can also enhance individual work attitudes because ethical organizations are typically valued. Socially responsible companies are likely viewed as ethical organizations and should therefore prompt similar employee job responses. Using survey information collected from 313 business professionals, this exploratory study proposed that perceived corporate social responsibility would mediate the positive relationships between ethics codes/training and job satisfaction. Results indicated that corporate social responsibility fully or partially mediated the positive associations between four ethics program variables and individual job satisfaction, suggesting that companies might better manage employees’ ethical perceptions and work attitudes with multiple policies, an approach endorsed in the ethics literature.