Analysing the Impact of ESG on Work Values – A Generational Analysis of Gen Z and Millennials

Abstract

Purpose: In a period of enhanced focus on organizational effectiveness and performance through non-traditional methods, this research provides valuable insights into the interplay between ESG and work value. Companies increasingly adopt ESG activities for sustainable growth. However, a crucial aspect of how ESG activities affect individuals remains unexplored. There is a gap in the literature in understanding the relationship between engaging in ESG activities and values, particularly work values, and how these values vary among Millennials and Generation Z. The two crucial groups are Millennials, who currently comprise the majority of today's workforce, and Generation Z, who make up the upcoming wave of employees. Design/ methodology/ approach: Data was collected from 265 individuals, including 124 members of Generation Z, 96 members of Millennials, and 45 members of Generation X. The analysis done in SPSS 26 and Smart PLS 4 software revealed that Millennials and Generation Z see ESG in distinct ways. ESG's social elements influence Millennials, while governance shapes Generation Z. ESG has a greater impact on Gen Z's altruistic, social, and extrinsic work values than it does on Millennials. Implications: The study's findings pave the way for organizations to strategically align ESG strategies. Originality/value: The study's variables, to our knowledge, have never aligned before.