⚠ Official Notice: www.ijisrt.com is the official website of the International Journal of Innovative Science and Research Technology (IJISRT) Journal for research paper submission and publication. Please beware of fake or duplicate websites using the IJISRT name.



Role of ESG Practices in Shaping Organizational Climate: A Study of Selected Global Corporations


Authors : Astha Shukla; Dr. Vivek Singh Sachan

Volume/Issue : Volume 11 - 2026, Issue 5 - May


Google Scholar : https://tinyurl.com/3zyuakpu

Scribd : https://tinyurl.com/3pbd9n4p

DOI : https://doi.org/10.38124/ijisrt/26May848

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.


Abstract : This research assesses the association between ESG practices and organizational climate through a case-based analysis of global corporations. In the current business environment, corporate sustainability has become a strategic priority, with organizations adopting ESG initiatives not only for external accountability but also to enhance internal workplace dynamics. The study aims to invest how ESG practices influence organizational climate, employee engagement, and overall organizational culture. A descriptive and exploratory research design has been employed, relying on secondary data sources such as sustainability reports, annual reports, and existing academic literature of selected multinational corporations, including Unilever, Microsoft, and Patagonia. Using a comparative case study approach, the research scrutinize ESG practices and their impact on key aspects of organizational climate, such as employee satisfaction, transparency, trust, and inclusiveness. The analysis focuses on effective implementation of ESG practices plays a significant role in fostering a positive organizational climate. Organizations with strong ESG commitments tend to exhibit higher employee engagement, ethical work environments, and a more inclusive culture. The study derives that ESG practices serve as an important mechanism for building a sustainable organizational climate and ensuring long-term success in the global corporate landscape

Keywords : ESG, Organizational Climate, Corporate Sustainability, Organizational Culture, Employee Perception, Employee Trust.

References :

  1. Albuquerque, R., Koskinen, Y., Yang, S., & Zhang, C. (2022). Resiliency of environmental and social stocks: An analysis of the exogenous COVID-19 market crash. Review of Corporate Finance Studies, 11(3), 593–621.
  2. Amel-Zadeh, A., & Serafeim, G. (2018). Why and how investors use ESG information: Evidence from a global survey. Financial Analysts Journal, 74(3), 87–103.
  3. Białkowski, J., & Starks, L. T. (2022). ESG and employee engagement: Evidence from global firms. Journal of Corporate Finance, 74, 102222.
  4. Broadstock, D. C., Chan, K., Cheng, L. T., & Wang, X. (2021). The role of ESG performance during times of financial crisis: Evidence from COVID-19 in China. Finance Research Letters, 38, 101716.
  5. Fatemi, A., Glaum, M., & Kaiser, S. (2018). ESG performance and firm value: The moderating role of disclosure. Global Finance Journal, 38, 45–64.
  6. Friede, G., Busch, T., & Bassen, A. (2016). ESG and financial performance: Aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210–233.
  7. Glavas, A. (2016). Corporate social responsibility and employee engagement: Enabling employees to employ more of their whole selves at work. Frontiers in Psychology, 7, 796.
  8. Gorgenyi-Hegyes, E., Nathan, R. J., & Fekete-Farkas, M. (2021). Workplace health promotion, employee well-being and ESG performance. Sustainability, 13(22), 12460.
  9. Jung, H. S., & Yoon, H. H. (2021). The effects of organizational climate on employee engagement and performance. International Journal of Contemporary Hospitality Management, 33(3), 1025–1045.
  10. Kim, H. R., Lee, M., Lee, H. T., & Kim, N. M. (2018). Corporate social responsibility and employee–company identification. Journal of Business Ethics, 95(4), 557–569.
  11. Kuenzi, M., & Schminke, M. (2019). Assembling fragments into a lens: A review of the organizational work climate literature. Journal of Management, 45(2), 634–717.
  12. Narula, S., Puppala, H., & Reddy, Y. V. (2023). ESG practices and firm performance: A review and research agenda. Global Business Review, 24(1), 1–18.
  13. Norton, T. A., Parker, S. K., Zacher, H., & Ashkanasy, N. M. (2017). Employee green behavior and organizational climate. Organization & Environment, 30(1), 1–25.
  14. Patterson, M. G., West, M. A., Shackleton, V. J., Dawson, J. F., Lawthom, R., Maitlis, S., Robinson, D., & Wallace, A. M. (2016). Validating the organizational climate measure: Links to productivity. Journal of Organizational Behavior, 26(4), 379–408.
  15. Schneider, B., Ehrhart, M. G., & Macey, W. H. (2017). Organizational climate and culture. Annual Review of Psychology, 64, 361–388.
  16. Sinha, P., & Pandey, R. (2020). ESG disclosures and firm performance: Evidence from emerging markets. Journal of Sustainable Finance & Investment, 10(4), 345–362.
  17. Velte, P. (2017). Does ESG performance have an impact on financial performance? Journal of Global Responsibility, 8(2), 169–178.

This research assesses the association between ESG practices and organizational climate through a case-based analysis of global corporations. In the current business environment, corporate sustainability has become a strategic priority, with organizations adopting ESG initiatives not only for external accountability but also to enhance internal workplace dynamics. The study aims to invest how ESG practices influence organizational climate, employee engagement, and overall organizational culture. A descriptive and exploratory research design has been employed, relying on secondary data sources such as sustainability reports, annual reports, and existing academic literature of selected multinational corporations, including Unilever, Microsoft, and Patagonia. Using a comparative case study approach, the research scrutinize ESG practices and their impact on key aspects of organizational climate, such as employee satisfaction, transparency, trust, and inclusiveness. The analysis focuses on effective implementation of ESG practices plays a significant role in fostering a positive organizational climate. Organizations with strong ESG commitments tend to exhibit higher employee engagement, ethical work environments, and a more inclusive culture. The study derives that ESG practices serve as an important mechanism for building a sustainable organizational climate and ensuring long-term success in the global corporate landscape

Keywords : ESG, Organizational Climate, Corporate Sustainability, Organizational Culture, Employee Perception, Employee Trust.

Paper Submission Last Date
31 - May - 2026

SUBMIT YOUR PAPER CALL FOR PAPERS
Video Explanation for Published paper

Never miss an update from Papermashup

Get notified about the latest tutorials and downloads.

Subscribe by Email

Get alerts directly into your inbox after each post and stay updated.
Subscribe
OR

Subscribe by RSS

Add our RSS to your feedreader to get regular updates from us.
Subscribe