Navigating Sustainability: How ESG Commitments Create Meaning of Work and Performance in the Maritime Industry

Shella Sherra Sundari; Liliana Dewi

doi:10.71094/vkj.v4i1.414

Authors

Shella Sherra Sundari Business Management Program, Universitas Ciputra, Indonesia
Liliana Dewi Business Management Program, Universitas Ciputra, Indonesia

DOI:

https://doi.org/10.71094/vkj.v4i1.414

Keywords:

ESG Practices, Employee Performance, Intention to Stay, Organizational Engagement, Organizational Citizenship Behavior

Abstract

The maritime industry plays a strategic role in supporting economic sustainability, making the implementation of Environmental, Social, and Governance (ESG) practices increasingly relevant. This study examines the effect of ESG practices on employee performance through organizational engagement in the maritime industry. ESG practices are represented by Perceived Environmental Practices (PEP), Perceived Social Practices (PSP), and Perceived Governance Practices (PGP), while employee performance is reflected in Intention to Stay (INS) and Organizational Citizenship Behavior (OCB). Using a quantitative approach, data were collected from 119 employees through purposive sampling and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The results show that PEP and PSP have positive and significant effects on Organizational Engagement (OE), whereas PGP has no significant effect. ESG practices do not directly influence INS, while only PSP has a significant direct effect on OCB. The mediation analysis reveals that OE fully mediates the effects of PEP and PSP on INS. OE also fully mediates the effect of PEP on OCB and partially mediates the effect of PSP on OCB, while PGP shows no mediation effect. These findings emphasize the importance of organizational engagement in translating environmental and social ESG practices into improved employee retention and extra-role behavior.

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