More Than a Stay: Examining the Dual Pathways Between Perceived Employee ESG Behavior and Consumer Meaningfulness in the Hotel Industry

This study examines the relationship between perceived employee environmental, social, and governance (ESG) behavior and consumer meaningfulness by exploring the mediating role of moral elevation and perceived authenticity, as well as the moderating role of consumers’ skepticism. The study draws upon the integration of self-determination theory and social cognitive theory. Prior research has often neglected the outcomes of interaction between employee behaviors and consumer perceptions. Th study used a sequential explanatory research design to understand the observable perceived ESG behaviors of the employees and the psychological outcomes of the consumers. The study involved 390 consumers from five-star hotels in Addis Ababa, Ethiopia. The data was gathered through a survey and analyzed using a structural equation model via the Smart-PLS tool. The interview data were collected from 16 frontline employees of five-star hotels and analyzed through thematic analysis. The quantitative results confirmed perceived employee ESG behavior is positively and significantly associated with consumers’ sense of meaningfulness, moral elevation, and perceived authenticity. Additionally, moral elevation and perceived authenticity significantly mediate the link between perceived employee ESG behavior and consumer sense of meaningfulness. Furthermore, consumer ESG skepticism negatively moderates the link between employee ESG behavior and both moral elevation and perceived authenticity. The qualitative study indicated that internal motivation of the company predicts employee behaviors, promoting voluntary actions to build consumers’ meaningfulness. The study advances theories and suggests implications for policymakers and managers regarding ESG behaviors among employees and the way consumers perceive them.