EMPLOYEE WELL-BEING AS A STRATEGIC MEDIATOR LINKING SUSTAINABILITY LEADERSHIP AND JOB DEMANDS TO CORPORATE REPUTATION IN OIL PALM INDUSTRY: A CONCEPTUAL INTEGRATION OF JD-R AND SOCIAL EXCHANGE THEORY
DOI:
https://doi.org/10.35631/IJEMP.935070Keywords:
Corporate Reputation, Employee Well-Being, Job Demands-Resources (JD-R), Oil Palm Plantation Industry, Social Exchange Theory (SET), Sustainability LeadershipAbstract
This research paper analyzes the effect of sustainability leadership and job demands on improving corporate reputation in the Malaysian oil Palm plantations sector, with employee well-being as a mediator. In the industry under consideration which operates in tough conditions of growing ESG challenges, knowledge of how internal processes of organizations can influence their external reputation is extremely valuable. Based on the combination of JD-R theory and SET, the present study analyzes how sustainability leadership practices (environmental, social, economic, and ethical governance) and job demands (work role overload and regulatory compliance pressure) influence employee well-being and corporate reputation respectively. Quantitative approach to research has been chosen. The data collection was performed from 651 middle management employees of Malaysian plantation companies through purposive sampling. The gathered data was processed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results showed that sustainability leadership had a positive impact on employee well-being whereas job demands negatively influenced it. Employee well-being had a significant impact on corporate reputation and acted as a mediator between sustainability leadership/job demands and corporate reputation. These findings support the proposition that employee well-being is a key psychological and relational link between internal processes and external organizational results. Sustainability leadership and job demand management are crucial factors that need to be employed to enhance employee well-being and organizational reputation. The study adds to theory by bringing together the theories of JD-R and SET, as well as making contributions for practice in plantation companies and policy makers.
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