Optimizing Human Capital for ESG Success: A Social Cognitive Theory Perspective on Multinational Corporations in China

Multinational corporations (MNCs) play a pivotal role in driving sustainable development by effectively implementing Environmental, Social, and Governance (ESG) strategies. This study adopts the lens of Social Cognitive Theory to analyze how MNCs operating in China can optimize human capital to enhance ESG outcomes. By exploring the interplay between individual cognition, organizational culture, and incentive mechanisms, the research establishes a human capital-driven framework for ESG implementation. Key findings emphasize the importance of cultivating ESG awareness among employees, fostering an ESG-centric organizational culture, and designing robust incentive structures to align individual behaviors with corporate sustainability goals. This comprehensive approach offers practical insights for MNCs striving to balance profitability with social responsibility and environmental stewardship in a rapidly evolving global landscape.