Untangling the mystery of employee happiness in the FMCG sector: the role of corporate social responsibility, environmental self-identity and corporate image

Drawing on stakeholder theory and self-identity theory, this study examines the mediating role of corporate image in the relationship between corporate social responsibility (CSR), environmental self-identity, and employee happiness (EH) in the FMCG sector of India. The structured, closed-ended questionnaire was distributed to employees working in five large multinational organisations in the FMCG sector in India. A total of 238 completed questionnaires were returned and used for the final data analysis. Partial least squares structural equation modelling (PLS-SEM) was employed to analyse the data. The results reveal that CSR is significantly and positively related to EH. Conversely, environmental self-identity was found to be an insignificant predictor of the EH. Furthermore, corporate image stabilised as a significant mediating variable between CSR, environmental self-identity and EH. This study suggests that organisations operating in the FMCG sector should harness CSR programmes and implement them through employees. This study extends the existing literature by integrating stakeholder theory and self-identity theory with employee psychometrics, linking to their well-being. Practically, it provides actionable insights for FMCG firms to design impactful CSR strategies that align with employee values, foster a positive corporate image, and ultimately promote a happier, more engaged workforce.