In the rapidly evolving business landscape, the idea of corporate purpose has gained widespread acceptance, as companies recognize the need to prioritize the interests of various stakeholders and contribute to the betterment of society. Sustainability has emerged as a critical element of a company’s commitment to its community and the broader world. Recent research delves into the reasons why working for a purpose-driven organization inspires employees to actively engage in sustainability behaviors.
Employee sustainability behaviors can be ethically intricate, as they often involve navigating conflicting stakeholder interests and finding ways to benefit society without compromising the company’s economic well-being. Simply relying on rules and regulations or narrowly defined moral codes falls short in guiding employees through these complexities. Instead, companies need to provide a broader, more encompassing ethical framework to help employees make informed decisions about sustainability.
This is where corporate purpose comes into play. It offers employees a broader ethical lens through which they can view sustainability issues. Corporate purpose instills a sense of self-identity and belongingness among employees. Working for a purpose-driven company gives individuals the belief that they are part of a collective effort striving for the greater good. This sense of ownership fuels their commitment to sustainability.
To substantiate these findings, researchers conducted a comprehensive study involving approximately 350 employees from the Indian subsidiary of a global heavy machinery manufacturer. The analysis of survey results confirmed that corporate purpose significantly influenced employees’ sense of ownership over sustainability and, subsequently, their engagement in sustainable behaviors.
To further explore this phenomenon, a laboratory experiment divided participants into two groups. The first group was asked to imagine working for a fictitious company whose sole purpose was “maximizing shareholder value.” The second group imagined being part of a company with a purpose of “nourishing families so they can flourish and thrive.” The results were striking—employees who envisioned themselves as part of the “nourishing family” company displayed a significantly higher sense of ownership over sustainability and demonstrated a greater willingness to engage in sustainable behaviors.
Two additional surveys were conducted among actual employees to reinforce the link between corporate purpose and sustainability behaviors. In a survey of 241 employees from a German construction company, the researchers found that granting employees autonomy in making sustainability-related decisions positively influenced their sense of ownership. Moreover, a survey encompassing over 1000 employees from various industries revealed that the impact of sustainability autonomy on ownership was stronger among individuals who placed high importance on moral values.
The implications for managers and leaders are crystal clear:
- Crafting a well-defined corporate purpose that transcends narrow notions of shareholder value is the first step in fostering sustainability behaviors among employees.
- Granting employees autonomy in sustainability decision-making is vital to enhancing their sense of ownership. Autonomy should extend not only to individual employees but also to business units and geographical locations, as sustainability issues often vary across contexts.
- Companies can further bolster their sustainability efforts by actively priming employees with moral nudges. These could include initiatives such as signage, webcasts, or the presence of sustainability ambassadors, all aimed at reinforcing employees’ moral compass and commitment to sustainability.
By aligning corporate purpose with sustainability goals, empowering employees to make decisions, and fostering a culture that values moral principles, companies can unlock the transformative power of their workforce. Through this collective commitment to sustainability, businesses can drive positive change, benefiting both their bottom line and the communities they serve.