South Asian Journal of Social Studies and Economics

This study investigates the impact of environmental sustainability initiatives on employee morale, with a specific focus on the mediating role of organizational identification. Utilizing a mixed-methods approach, the research encompasses quantitative data from 500 employees across various industries in Germany and qualitative insights from semi-structured interviews. The findings reveal that environmental sustainability initiatives positively influence employee morale both directly and indirectly through enhanced organizational identification. Employees who perceive a strong alignment between their values and their organization's sustainability efforts report higher job satisfaction and commitment. The study also highlights the critical role of leadership and communication in successfully implementing sustainability initiatives. These insights extend social identity theory and contribute to the literature on corporate social responsibility (CSR) by elucidating the internal benefits of sustainability practices. Practical implications for organizational leaders and policymakers include integrating sustainability into core business strategies, fostering organizational identification, and promoting transparent communication to enhance employee morale and organizational effectiveness.