IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i12p5233-d1673138.html
   My bibliography  Save this article

The Impact of ESG Management Activities on the Organizational Performance of Manufacturing Companies in South Korea: The Moderating Effect of Job Position

Author

Listed:
  • Soo-Cheol Jeong

    (Korea Knowledge Management Institute, Changwon National University, Changwon 51140, Republic of Korea)

  • Haeng-Nam Sung

    (BK21 Digital Finance Education and Research Center, Pusan National University, Busan 46241, Republic of Korea)

  • Jae-Ik Shin

    (Department of Smart Distribution and Logistics, Gyeongsang National University, Jinju 52725, Republic of Korea)

Abstract

This study aims to examine the impact of ESG management activities (independent variable) on organizational trust and organizational commitment (mediating variables), as well as organizational performance (dependent variable), among members of large manufacturing enterprises. Additionally, it investigates the moderating effect of job position on the relationship between ESG management activities and organizational performance. For the empirical analysis of this study, data were collected from 561 employees of three large manufacturing companies—Company L, Company H, and another Company H—all of which have implemented and are practicing ESG management. The data were analyzed using SPSS 29.0 and structural equation modeling (SEM: AMOS 29.0). The key findings from the empirical analysis are as follows: First of all, all three ESG factors—environmental (E), social (S), and governance (G)—had a positive effect on organizational trust. The environmental and governance factors had a positive effect on organizational commitment. However, the social factor exhibited a negative effect on organizational commitment. The environmental factor showed a negative effect on organizational performance. By contrast, the social and governance factors had a positive effect on organizational performance. Organizational trust was found to enhance organizational commitment significantly, confirming that employees who trust their organization are more likely to be committed to it. Fifth, a strong sense of trust in the organization was shown to contribute positively to organizational performance and competitiveness. Organizational commitment positively impacted organizational performance, reinforcing the idea that highly committed employees contribute to better outcomes. Finally, this study confirmed that job position moderated the relationship between ESG management activities and organizational performance, indicating that employees at different hierarchical levels perceive ESG management’s impact differently. This study expands the research scope of ESG management beyond marketing, HR, and service industries to focus on employees in large manufacturing enterprises. This provides new insights into how ESG initiatives influence internal organizational dynamics. This study is meaningful in that it provides a foundation for expanding future research into the field of finance or other areas of the manufacturing industry. From a practical standpoint, the findings highlight the necessity of strategic initiatives to ensure that employees fully understand and engage with ESG-related policies. To successfully implement ESG management, organizations must develop effective communication and integration strategies that foster employees’ recognition of ESG initiatives.

Suggested Citation

  • Soo-Cheol Jeong & Haeng-Nam Sung & Jae-Ik Shin, 2025. "The Impact of ESG Management Activities on the Organizational Performance of Manufacturing Companies in South Korea: The Moderating Effect of Job Position," Sustainability, MDPI, vol. 17(12), pages 1-21, June.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:12:p:5233-:d:1673138
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/12/5233/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/12/5233/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Peter Wright & Stephen P. Ferris, 1997. "Agency Conflict And Corporate Strategy: The Effect Of Divestment On Corporate Value," Strategic Management Journal, Wiley Blackwell, vol. 18(1), pages 77-83, January.
    2. Jeremy Galbreath & David Charles & Eddie Oczkowski, 2016. "The Drivers of Climate Change Innovations: Evidence from the Australian Wine Industry," Journal of Business Ethics, Springer, vol. 135(2), pages 217-231, May.
    3. Weihui Fu & Satish Deshpande, 2014. "The Impact of Caring Climate, Job Satisfaction, and Organizational Commitment on Job Performance of Employees in a China’s Insurance Company," Journal of Business Ethics, Springer, vol. 124(2), pages 339-349, October.
    4. Duygu Turker, 2009. "Measuring Corporate Social Responsibility: A Scale Development Study," Journal of Business Ethics, Springer, vol. 85(4), pages 411-427, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Saeidi, Sayedeh Parastoo & Sofian, Saudah & Saeidi, Parvaneh & Saeidi, Sayyedeh Parisa & Saaeidi, Seyyed Alireza, 2015. "How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction," Journal of Business Research, Elsevier, vol. 68(2), pages 341-350.
    2. Myeongju Lee & Hyunok Kim, 2017. "Exploring the Organizational Culture’s Moderating Role of Effects of Corporate Social Responsibility (CSR) on Firm Performance: Focused on Corporate Contributions in Korea," Sustainability, MDPI, vol. 9(10), pages 1-18, October.
    3. Diaye, Marc-Arthur & Lasram, Hejer & Pekovic, Sanja, 2023. "How does CSR affect workers’ compensation? An approach by the theory of incentives," International Journal of Production Economics, Elsevier, vol. 260(C).
    4. Jan Schmitz & Jan Schrader, 2015. "Corporate Social Responsibility: A Microeconomic Review Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 29(1), pages 27-45, February.
    5. Franck Brulhart & Sandrine Gherra & Bertrand V. Quelin, 2019. "Do Stakeholder Orientation and Environmental Proactivity Impact Firm Profitability?," Journal of Business Ethics, Springer, vol. 158(1), pages 25-46, August.
    6. Li, Ying & Liu, Zhen & Qin, Kuiyuan & Cui, Jiayu & Zeng, Xiaoyu & Ji, Ming & Lan, Jijun & You, Xuqun & Li, Yuan, 2021. "Organizational trust and safety operation behavior in airline pilots: The mediating effects of organizational identification and organizational commitment," Journal of Air Transport Management, Elsevier, vol. 92(C).
    7. Evangeline O. Elijido-Ten & Peter Clarkson, 2019. "Going Beyond Climate Change Risk Management: Insights from the World’s Largest Most Sustainable Corporations," Journal of Business Ethics, Springer, vol. 157(4), pages 1067-1089, July.
    8. Antonio Martos-Pedrero & David Jiménez-Castillo & Francisco Joaquín Cortés-García, 2022. "Examining drivers and outcomes of corporate social responsibility in agri-food firms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(3), pages 79-86.
    9. Mubashir Ahmad Aukhoon & Junaid Iqbal & Zahoor Ahmad Parray, 2024. "Impact of corporate social responsibility on employee green behavior: Role of green human resource management practices and employee green culture," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 3768-3778, September.
    10. Fabien Martinez, 2014. "Corporate strategy and the environment: towards a four-dimensional compatibility model for fostering green management decisions," Post-Print hal-02887618, HAL.
    11. Robin Stevens & Nathalie Moray & Johan Bruneel, 2015. "The Social and Economic Mission of Social Enterprises: Dimensions, Measurement, Validation, and Relation," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1051-1082, September.
    12. Mario Morales-Parragué & Luis Araya-Castillo & Fidel Molina-Luque & Hugo Moraga-Flores, 2022. "Scientometric Analysis of Research on Corporate Social Responsibility," Sustainability, MDPI, vol. 14(4), pages 1-22, February.
    13. Christopher Groening & Vamsi K. Kanuri, 2018. "Investor Reactions to Concurrent Positive and Negative Stakeholder News," Journal of Business Ethics, Springer, vol. 149(4), pages 833-856, June.
    14. , Ridwan & Gani, H. Mursalim Umar & Gani, H. Achmad & Hamid, H. Sunusi & Jamali, Hisnol, 2018. "Hrm Practices And Its Impact On Employee Performance: A Study Of The Cement Industry In Indonesia," INA-Rxiv ubtms, Center for Open Science.
    15. Castaldo, Sandro & Ciacci, Andrea & Penco, Lara, 2023. "Perceived corporate social responsibility and job satisfaction in grocery retail: A comparison between low- and high-productivity stores," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    16. Eng, Li Li & Fikru, Mahelet G. & Vichitsarawong, Thanyaluk, 2021. "The impact of toxic chemical releases and their management on financial performance," Advances in accounting, Elsevier, vol. 53(C).
    17. Loan Thi-Hong Van & Le Dang Lang & Trong Liem-Phuoc Ngo & João Ferreira, 2024. "The impact of internal social responsibility on service employees' job satisfaction and organizational engagement," Service Business, Springer;Pan-Pacific Business Association, vol. 18(1), pages 101-131, March.
    18. Nagib Salem Bayoud & Marie Kavanagh & Geoff Slaughter, 2012. "An Empirical Study Of The Relationship Between Corporate Social Responsibility Disclosure And Organizational Performance: Evidence From Libya," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 5(3), pages 69-82.
    19. Mercedes Rubio-Andrés & Santiago Gutiérrez-Broncano & Jorge Linuesa-Langreo & Miguel Ángel Sastre-Castillo, 2025. "Exploring the reality of corporate sustainability strategy and sales performance in entrepreneurial SMEs: the mediating effect of innovation and sustainability performance," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-34, December.
    20. Mohsin, Asad & Lengler, Jorge & Aguzzoli, Roberta, 2015. "Staff turnover in hotels: Exploring the quadratic and linear relationships," Tourism Management, Elsevier, vol. 51(C), pages 35-48.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:12:p:5233-:d:1673138. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.