Unlocking the synergies between Corporate Sustainability and Employee Engagement - A case study on how to incorporate sustainability into engagement strategies

Abstract

Two of the 21st centuries emerging business trends are the concepts of “employee engagement” and corporate sustainability. Previous research has discovered how corporate sustainability positively influences employee’s emotions and behaviours, but few have established how firms should operate to attain these benefits. Therefore, the study’s purpose is to understand how corporate sustainability could be incorporated into engagement strategies. However, the concept of employee engagement is highly disputed within academia. The authors address this deficiency by developing a general engagement model by establishing the two ascendants of engagement (appraisal and involvement) followed by two moderating factors prominent in a multinational company (MNC) (organisational structure and institutional differences). By synthesising the fundamental model with corporate sustainability, created six hypotheses. Through a quantitative case study, an online survey was sent to Scandinavian and Central West African employees within the same MNC. By applying a stepwise OLS regression, the analysis shows (1) employee’s appraisal of the firm’s corporate sustainability and involvement in sustainability initiatives predicts engagement; (2) the relationship is not affected by the individuals institutional belonging; (3) the position held within the MNC will affect the employee’s appraisals in relation to their engagement. The study contributes to theory by establishing how sustainability can be utilised as a catalyst to engagement, unbounded of institutional settings. It indicates how an MNC can apply a centralised engagement strategy when incorporating sustainability. For managers, findings emphasise the need for creating a two-way communication channel to aid employees’ appraisal and involvement.