Citation

Tan, Wan Yee and Cheah, Yeh Ying and Cheah, Chew Sze (2026) Sustainable Success: Exploring the Impact of ESG Practices on Employee Retention. Studies in Systems, Decision and Control, 612. pp. 703-713. ISSN 2198-4182

Text Sustainable Success_ Exploring the Impact of ESG Practices on Employee Retention _ Springer Nature Link.pdf - Published Version Restricted to Repository staff only Download (326kB)

Abstract

Environmental, Social, and Governance (ESG) is now a globally recognized framework for evaluating the sustainability and ethical impact of businesses and organizations. The long-term prosperity of any organization is significantly influenced by the retention of its workforce. Despite previous studies demonstrating that companies adopting ESG measures lead to beneficial outcomes such as positive environmental effects, the impact of ESG factors on employee retention is still not well understood. As employees are considered to be pivotal to sustainable HRM, employee perceptions of ESG initiatives play a crucial role as they shape the way individuals perceive their organizational culture, impacting their work attitudes and behaviors. Consequently, this research seeks to empirically investigate how employees’ ESG perceptions influence their intention to stay with the organization. The ESG framework helps stakeholders of the organization to better understand how the organization can manage issues related to environment, society and corporate governance. Nowadays, the organization turnover rate is high so the company adopted the ESG framework can help the organization to reduce the turnover rate. This research study utilises the quantitative methods to collect and measure the data by using questionnaires. Descriptive statistics and structural equation modeling will be used to analyse quantitative data collected from the survey. This research explores the synergistic influences of three distinct ESG factors on the ability to retain employees. Businesses can efficiently allocate resources to key ESG factors identified in this study.

Item Type:	Article
Uncontrolled Keywords:	Employee retention
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD4801-8943 Labor. Work. Working class > HD5650-5660 Employee participation in management. Employee ownership. Industrial democracy. Works councils
Divisions:	Faculty of Business (FOB)
Depositing User:	Ms Rosnani Abd Wahab
Date Deposited:	11 Feb 2026 02:08
Last Modified:	11 Feb 2026 02:08
URII:	http://shdl.mmu.edu.my/id/eprint/15346

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