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Demographic Variables and the Link Between Environmental, Social, and Governance Criteria and Corporate Sustainability Performance: the Influence on Workers' Perception

Year: 2025

Type: article

Abstract: ABSTRACT The integration of environmental, social, and governance (ESG) criteria into corporate practice depends in part on how employees of different demographic groups perceive ESG impacts. Therefore, the objective of this research is to identify which workforce demographic characteristics most strongly influence employees' perceptions of how ESG criteria affect corporate sustainability performance. Using a mixed quantitative approach— partial least squares structural equation modeling (PLS‐SEM) combined with multicriteria decision analysis (MCDA) via PROMETHEE‐RATIO—the analysis draws on responses from 2747 employees of two Brazilian electricity‐sector firms. PLS‐SEM confirmed a multidimensional ESG measurement model and revealed significant multigroup differences. PROMETHEE‐RATIO rankings highlighted item Q3 as the highest‐priority target for intervention across groups, while Q10 and Q13 were consistently least critical. Nonparametric testing showed significant demographic variance (Kruskal–Wallis χ 2 = 32.206, df = 7, p = 3.719 × 10 −5 ). Women in the Central‐West (G8) displayed distinct factor loadings versus several groups. Gender and geographic region were the strongest demographic covariates associated with variation in ESG perceptions. Demographic heterogeneity (particularly gender and region) shapes employee ESG perceptions. Tailored, demographically sensitive ESG strategies are therefore recommended to enhance employee engagement and organizational sustainability. This study contributes a granular assessment to guide more inclusive ESG management.

Source: Business and Society Review

DOI: 10.1111/basr.70032