The S in Environmental, Social and Governance (ESG): Utility of the Theory of Planned Behaviour for explaining social sustainable behaviour

As ESG (Environmental, Social, Governance) reporting standards become increasingly mandatory in the private sector, it is imperative to rigorously address the operationalisation and accurate measurement of its three dimensions, with a particular focus on the social aspect. Despite receiving lower attention in both academia and industry practices, the social dimension is pivotal in sustaining long-term workforce well-being and performance. This paper illuminates Human Resource Management’s pivotal role in implementing SocS initiatives, critiquing the insufficiency of traditional Key Performance Indicators (KPI) approaches and advocating for a nuanced understanding of employee behaviour. We explore the applicability of the Theory of Planned Behaviour (TPB) as a rational-cognitive model to understand how beliefs shape intentions and behaviours relevant to SocS, thereby examining SocS from an employee perspective. Qualitative pilot research is followed by path analyses involving 337 employees from Germany and the UK. Findings suggest TPB’s suitability, with attitudes, norms and control predicting socially sustainable intentions, and in turn behaviour. Attitudes emerge as the most influential predictor. The study delves into limiting beliefs and perceived obstacles, proposing HR strategies to effectively engage employees in the transition towards sustainability. Integrating TPB into SocS advances theory by establishing a coherent programmatic theory, linking macro-level organisational conditions with micro-level cognitive processes, while simultaneously enhancing practical applications through the development of targeted HR strategies that promote employee-driven sustainability behaviours.