Key Factors for Sustainability - Corporate Culture and Employee Well-being

Research Article
Open access

Key Factors for Sustainability - Corporate Culture and Employee Well-being

Zeyi Li 1* , Jiayin Hu 2
  • 1 Taylor’s University, Malaysia    
  • 2 Taylor’s University, Malaysia    
  • *corresponding author lizeyitaylors@gmail.com
Published on 18 April 2024 | https://doi.org/10.54254/2754-1169/78/20241734
AEMPS Vol.78
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-379-1
ISBN (Online): 978-1-83558-380-7

Abstract

In the context of sustainable development, the impact of corporate culture on employee well-being is particularly significant. This paper examines why corporate culture is a key factor in enhancing employee well-being and driving corporate sustainability. Research shows that when corporate culture emphasizes respect, inclusiveness, justice and teamwork, it can significantly enhance the enthusiasm and creativity of employees, thus promoting the innovation and long-term development of enterprises. In a diverse work environment, building a supportive and inclusive corporate culture is essential to accommodate the needs of employees from different backgrounds. This will not only help improve the job satisfaction of employees, but also enhance the social responsibility and market competitiveness of enterprises. The paper also analyses the role of corporate culture in responding to modern workplace challenges such as remote working and work-life balance. Flexible work arrangements, employee health and welfare programs, and continuous career development opportunities were identified as key to enhancing employee well-being. These measures not only improve the quality of life of employees, but also enhance their loyalty and sense of belonging to the enterprise. A positive, inclusive and supportive corporate culture is essential to improve employee job satisfaction and loyalty and promote the long-term beneficial development of the business.

Keywords:

Corporate culture, Employee well-being, Sustainable development, Job satisfaction, Multicultural environment

Li,Z.;Hu,J. (2024). Key Factors for Sustainability - Corporate Culture and Employee Well-being. Advances in Economics, Management and Political Sciences,78,263-267.
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1. Introduction

Today's business environment is changing rapidly, and the impact of corporate culture on organizational quality and sustainable development is increasingly significant. The purpose of this study was to investigate how corporate culture affects employee well-being and analyze its role for organizational sustainability. A positive corporate culture is believed to increase employee job satisfaction, engagement, and loyalty, while a negative culture can lead to low employee morale and reduced productivity. At the same time, a corporate culture with sustainability as the core is essential to balance environmental protection, social responsibility and economic benefits. Through a literature review, this study investigates how different corporate cultures affect employee psychology and behavior, and how these influences contribute to the sustainable development of organizations. The research will focus on the following key questions: how corporate culture affects employee well-being, the impact of corporate culture on organizational sustainability, and how to construct a corporate culture that both supports employee well-being and promotes sustainability. The importance of this study is to provide business managers with practical strategies on how to improve employee satisfaction and loyalty, reduce turnover, and improve productivity and innovation through corporate culture, so as to achieve long-term sustainable organizational development. This study aims to provide a framework for companies to focus on employee well-being and social sustainability while pursuing economic benefits.

2. The key argument

2.1. Corporate culture and employee well-being

Corporate culture, as a collection of an organization's core values, beliefs, and codes of conduct, has a profound impact on employee well-being. The study by Amechi and Edwinah [1] shows that an effective organizational culture, including engagement, adaptability, alignment and mission, has a positive impact on non-financial performance and employee well-being. A culture that emphasizes teamwork and support enhances connections among employees, increasing job satisfaction and a sense of belonging. In addition, corporate culture indirectly enhances employee well-being by influencing management decisions and policy making. Quan, Chi, and Giang [2] pointed out that the corporate culture of psychological safety improves employees' innovation ability and team collaboration efficiency, and enhances job satisfaction and career commitment. Thanetsunthorn and Wuthisatian [3] showed that a corporate culture that supports learning and development encourages employees to improve their skills and knowledge to achieve career progress and personal growth. Reidhead [4] highlights the importance of an inclusive culture to enhance employee well-being in an increasingly diverse work environment, a culture that fosters innovation and teamwork by appreciating and leveraging diverse differences. Corporate culture also influences the material well-being of employees, such as health insurance and retirement benefit plans, improving the quality of life and loyalty to the organization. Facing the challenges of remote work, it is critical to adapt a corporate culture that emphasizes autonomy, trust and flexibility. Combined with the above studies, by building a corporate culture that supports psychological safety, promotes employee growth, embraces diversity, provides comprehensive benefits, and adapts to remote work, companies can significantly improve employee well-being and promote the healthy and sustainable development of their organizations, which is a key strategy for corporate managers to improve employee well-being and drive organizational success.

2.2. Corporate culture and sustainable development

In sustainable development, corporate culture plays an important driving role. Zulfikar[5] believes that a strong corporate culture in small and medium-sized enterprises has an important impact on sustainable development. Their results show that 79% of the impact and outcomes are due to corporate culture, while only 21% are due to competitive advantage. This proves the important role of corporate culture in creating and advancing the sustainable development of smes. This will enable smes to pay more attention to sustainability goals and practices in their decision-making and behavior. Thu and Khoi[6] found that employee satisfaction and engagement can be improved by a positive corporate culture, which encourages employees to innovate, take risks, and have a long-term perspective. This is crucial for sustainable development and also promotes the long-term sustainable development of enterprises. Wang and Huang[7] pointed out that the establishment of corporate culture needs to ensure the balance between innovation and risk management to achieve sustainable performance. Innovation culture encourages the exploration of new solutions and establishes innovation culture control to ensure the stability and reliability of solutions. Fang, Ma and Lei[8] showed that the values contained in corporate culture can have a significant impact on the sustainability of their enterprises. Izmailova[9] 's research shows that corporate culture plays a dual role in the sustainable development of enterprises. Companies should establish a culture that not only motivates employees, promotes innovation, but also ensures efficient operations and market competitiveness. To support low-carbon and environmental protection. This culture can not only improve the long-term competitiveness of enterprises, but also help enterprises play an active role in global sustainability challenges.

2.3. Corporate culture and organizational performance

The influence of corporate culture on organizational performance is complex and diversified. At the same time, it also plays a key role in promoting organizational performance. Christopher and Edwinah[1] show that effective organizational culture includes engagement, adaptability, alignment and mission, which have a positive impact on business performance and productivity. This proves that the core factors contained in corporate culture directly affect the overall performance of the organization, emphasizing mission and consistency to improve employees' goal orientation, promote team collaboration, and improve organizational performance. A survey by Gunaraja[10] found that most respondents believed that corporate culture could affect employees' work performance and organizational productivity. It shows that corporate culture not only affects the individual performance of employees, but also affects the efficiency of the whole organization. The research of Sundararajan et al. [11] shows that a positive corporate culture can stimulate employees' innovation ability, promote the generation and implementation of new ideas, and thus improve the overall organizational performance. Narayana's study [12] emphasizes the importance of corporate culture on employee performance, which helps organizations to define market positioning, attract customers and talents, and improve market competitiveness. Companies need a culture that not only motivates employees and promotes innovation, but also supports efficient operations and market competitiveness. Such a culture can improve the long-term competitiveness of the company and also help the company to stay ahead in the face of market and industry challenges.

2.4. Corporate culture and employee engagement

There is a strong link between corporate culture and employee engagement, and this link is critical for organizational success. Several studies have shown that corporate culture plays an important role in improving employee engagement. Panes and Galanta[13] showed that human resource management practices, psychological empowerment, organizational culture and other factors will have an impact on employee engagement, among which employees' performance evaluation, perception of work impact and the strength of organizational culture are the key factors determining employee engagement. This suggests that a strong corporate culture needs to enhance the initiative and influence of employees, prompting them to participate more actively in organizational activities and decision-making processes. Naidoo and Martins[14] found that organizational culture dimensions are directly proportional to job engagement, especially in leadership, management processes, and clear goals, which have a significant impact on job engagement. This suggests that the leadership style, management style, and goal setting in the corporate culture are critical to improving employee engagement. Evangeline and Ragavan[15] have shown that organizational culture and employee motivation have a significant impact on employee engagement, leading to improved employee retention and financial performance. Positive corporate culture can improve employees' enthusiasm and satisfaction, thus increasing their participation and loyalty to the organization. Liu et al. [16] found in their research on the hotel industry that employee engagement is affected by the culture of empowerment, leadership and cooperation, which leads to the improvement of performance results at the individual and organizational levels. This suggests that the establishment of corporate culture needs to emphasize employee empowerment and teamwork to improve employee engagement and overall organizational performance.

2.5. Corporate culture and organizational change and adaptation

The role of corporate culture in the process of organizational change and adaptation. The research of Amah[17] shows that corporate culture with adaptability, shared mission, employee involvement and shared values will affect the profitability, productivity and market share of enterprises. Flexible and mission-oriented corporate culture can improve the effectiveness and efficiency of the organization in the process of change, help employees better understand and implement the change, and thus improve the success rate of change. Mărăcine[18] pointed out that a strong organizational culture helps to enhance the adaptability of enterprises, thus improving the overall operational efficiency. Pacheco-Ruiz et al. [19] found that strong organizational culture may have certain obstacles to change, so it is necessary to reduce such resistance through organizational development plans and break the inherent pattern. This shows that corporate culture change needs to comprehensively consider employees' psychology and behavior habits, and reduce the resistance to change by means of education and training. The research of Yaniieva[20] emphasized the importance of organizational culture to stimulate employees' enthusiasm and improve organizational adaptability. According to her, a positive and supportive organizational culture can promote employee engagement and awareness of innovation, enabling organizations to better respond to changes and challenges. Companies need to build cultures that can both enable transformation and promote organizational adaptability. This culture can improve the adaptability of the organization to changes in the external environment.

3. Conclusion

This paper combines several literatures and conclusions to illustrate the important role of corporate culture in the business environment. In particular, it has an important impact on employee well-being, sustainable development, organizational performance, employee engagement, and organizational change and adaptation. To sum up, corporate culture can not only shape the behavior and attitude of employees, but also be a key factor to promote the long-term goals and sustainable development of the organization. Corporate culture is the soul of the whole enterprise. In the process of sustainable development, corporate culture enhances environmental protection, social responsibility and economic benefits, thus promoting sustainable development; Corporate culture has a direct impact on employees' individual performance and organizational productivity; Corporate culture promotes employee engagement and loyalty by increasing employee motivation and satisfaction; Establish a flexible and open organizational culture to promote the rapid adaptation of the organization to changes in the external environment.Future research directions should include in-depth exploration of the impact of different corporate cultures on employees' mental health and career satisfaction, quantification of the specific impact of corporate culture on sustainable development, exploration of how corporate culture affects organizational performance in the long-term, research on how different corporate cultures affect employee engagement, and exploration of how corporate culture promotes organizational change and adaptation. Although this study provides insight into the multidimensional role of corporate culture, there are some limitations. It mainly relies on theoretical analysis and existing literature, and lacks field case studies and quantitative data support. In conclusion, corporate culture is a core strategy to achieve long-term organizational success and sustainability, and future research should continue to profoundly explore its multidimensional role in helping organizations remain competitive and adaptive in the ever-changing business environment.


References

[1]. Christopher, O.A. and Edwinah, A. (2022) 'Organizational Culture and Corporate Performance: A Review'.pp.152-162

[2]. Quan, N.M., Chi, N.T.K. and Giang, P.H. (2022) 'Sustainable Development under the Impacts of the Fourth Industrial Revolution and the Role of Corporate Culture Renovation'.pp.19-29

[3]. Thanetsunthorn, N., & Wuthisatian, R. (2018). Cultural configuration models: corporate social responsibility and national culture. Management Research Review, 41(10), pp.1137-1175

[4]. Reidhead, C. (2021) 'Employee Well-Being Becomes Top Priority'. pp.2268-2274

[5]. Zulfikar, R. Z., Widyanti, R. W., Basuki, B., Mayvita, P. A., & Purboyo, P. (2021). Encourage SMEs sustainable behavior during Covid-19 pandemic through competitive advantages and corporate culture. Serbian Journal of Management, 16(2).

[6]. Bùi, T. M. T., & Lê, N. Đ. K. (2016). Building Research Framework of Relationship Between Corporate Culture, Working Motivation and Employee’s Loyalty. pp.144-149

[7]. Wang, S., & Huang, L. (2022). A study of the relationship between corporate culture and corporate sustainable performance: evidence from Chinese SMEs. Sustainability, 14(13), 7527.

[8]. Fang, W., Ma, C., & Lei, Z. (2022). Research on Sustainable Development of Transport Infrastructure Based on Corporate Culture and Low-Carbon Perspective. Journal of Environmental and Public Health, 2022.

[9]. Izmailova, M., 2022. The Importance of Corporate Culture for the Sustainability of Companies in the Context of Crisis Phenomena. MIR (Modernization. Innovation. Research). https://doi.org/10.18184/2079-4665.2022.13.1.8-26.

[10]. Gunaraja, T. M. (2014). Organizational corporate culture on employee performance. Journal of Business and Management, 16(8), 8-42.

[11]. Sundararajan, T. P., Kee, D. M. H., Albert, P. J., Subramaniam, M., Thirupathi, H., Angarita, L. S. C., ... & Pandey, R. (2020). The Effects of Organizational Culture on Employee Performance: A Study of the Edge Newspaper. International Journal of Applied Business and International Management (IJABIM), 5(2), 44-53.

[12]. Narayana, A. (2017). A critical review of organizational culture on employee performance. American Journal of Engineering and Technology Management, 2(5), 72-76.

[13]. Panes, R., & Galanta, I. (2021). Determinants of Employee Engagement in a Tertiary Christian Institution in Mlang, North, Cotabato. Journal of Business and Management Studies, 3(2), 12-18.

[14]. Naidoo, P., & Martins, N. (2014). Investigating the relationship between organizational culture and work engagement. Problems and perspectives in Management, (12, Iss. 4 (spec. iss.)), 433-441.

[15]. Evangeline, E. T., & Ragavan, V. G. (2016). Organisational culture and motivation as instigators for employee engagement. Indian Journal of Science and Technology, 9(2), 1-4.

[16]. Liu, X., Yu, J., Guo, Q., & Li, J. (2022). Employee engagement, its antecedents and effects on business performance in hospitality industry: a multilevel analysis. International Journal of Contemporary Hospitality Management, 34(12), 4631-4652.

[17]. Amah, E., & Baridam, D. (2012). Adaptability and organizational effectiveness: A study of the Nigerian banking industry. International Journal of Business and Management Tomorrow, 2(3), 1-10.

[18]. Marin-Pantelescu, A., & Maniu, L. C. (2015). The Importance of the Organizational Culture. Case Study: Assessing the Organizational Climate Factors inside a Four Stars Hotel from Romania. International journal of Academic Research in Business and Social Sciences, 5(9), 303-309.

[19]. Khymych, I., Khymych, O., Tymoshyk, N., & Podvirna, T., (2021). Corporate culture of organizations in pandemic. Galic'kij ekonomičnij visnik. https://doi.org/10.33108/galicianvisnyk_tntu2021.06.097.

[20]. Yaniieva, D., (2022). EMPLOYEE MOTIVATION SYSTEM OF THE IT SPHERE ORGANIZATION. Innovation and Sustainability. https://doi.org/10.31649/ins.2022.4.186.192.


Cite this article

Li,Z.;Hu,J. (2024). Key Factors for Sustainability - Corporate Culture and Employee Well-being. Advances in Economics, Management and Political Sciences,78,263-267.

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About volume

Volume title: Proceedings of the 3rd International Conference on Business and Policy Studies

ISBN:978-1-83558-379-1(Print) / 978-1-83558-380-7(Online)
Editor:Arman Eshraghi
Conference website: https://www.confbps.org/
Conference date: 27 February 2024
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.78
ISSN:2754-1169(Print) / 2754-1177(Online)

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References

[1]. Christopher, O.A. and Edwinah, A. (2022) 'Organizational Culture and Corporate Performance: A Review'.pp.152-162

[2]. Quan, N.M., Chi, N.T.K. and Giang, P.H. (2022) 'Sustainable Development under the Impacts of the Fourth Industrial Revolution and the Role of Corporate Culture Renovation'.pp.19-29

[3]. Thanetsunthorn, N., & Wuthisatian, R. (2018). Cultural configuration models: corporate social responsibility and national culture. Management Research Review, 41(10), pp.1137-1175

[4]. Reidhead, C. (2021) 'Employee Well-Being Becomes Top Priority'. pp.2268-2274

[5]. Zulfikar, R. Z., Widyanti, R. W., Basuki, B., Mayvita, P. A., & Purboyo, P. (2021). Encourage SMEs sustainable behavior during Covid-19 pandemic through competitive advantages and corporate culture. Serbian Journal of Management, 16(2).

[6]. Bùi, T. M. T., & Lê, N. Đ. K. (2016). Building Research Framework of Relationship Between Corporate Culture, Working Motivation and Employee’s Loyalty. pp.144-149

[7]. Wang, S., & Huang, L. (2022). A study of the relationship between corporate culture and corporate sustainable performance: evidence from Chinese SMEs. Sustainability, 14(13), 7527.

[8]. Fang, W., Ma, C., & Lei, Z. (2022). Research on Sustainable Development of Transport Infrastructure Based on Corporate Culture and Low-Carbon Perspective. Journal of Environmental and Public Health, 2022.

[9]. Izmailova, M., 2022. The Importance of Corporate Culture for the Sustainability of Companies in the Context of Crisis Phenomena. MIR (Modernization. Innovation. Research). https://doi.org/10.18184/2079-4665.2022.13.1.8-26.

[10]. Gunaraja, T. M. (2014). Organizational corporate culture on employee performance. Journal of Business and Management, 16(8), 8-42.

[11]. Sundararajan, T. P., Kee, D. M. H., Albert, P. J., Subramaniam, M., Thirupathi, H., Angarita, L. S. C., ... & Pandey, R. (2020). The Effects of Organizational Culture on Employee Performance: A Study of the Edge Newspaper. International Journal of Applied Business and International Management (IJABIM), 5(2), 44-53.

[12]. Narayana, A. (2017). A critical review of organizational culture on employee performance. American Journal of Engineering and Technology Management, 2(5), 72-76.

[13]. Panes, R., & Galanta, I. (2021). Determinants of Employee Engagement in a Tertiary Christian Institution in Mlang, North, Cotabato. Journal of Business and Management Studies, 3(2), 12-18.

[14]. Naidoo, P., & Martins, N. (2014). Investigating the relationship between organizational culture and work engagement. Problems and perspectives in Management, (12, Iss. 4 (spec. iss.)), 433-441.

[15]. Evangeline, E. T., & Ragavan, V. G. (2016). Organisational culture and motivation as instigators for employee engagement. Indian Journal of Science and Technology, 9(2), 1-4.

[16]. Liu, X., Yu, J., Guo, Q., & Li, J. (2022). Employee engagement, its antecedents and effects on business performance in hospitality industry: a multilevel analysis. International Journal of Contemporary Hospitality Management, 34(12), 4631-4652.

[17]. Amah, E., & Baridam, D. (2012). Adaptability and organizational effectiveness: A study of the Nigerian banking industry. International Journal of Business and Management Tomorrow, 2(3), 1-10.

[18]. Marin-Pantelescu, A., & Maniu, L. C. (2015). The Importance of the Organizational Culture. Case Study: Assessing the Organizational Climate Factors inside a Four Stars Hotel from Romania. International journal of Academic Research in Business and Social Sciences, 5(9), 303-309.

[19]. Khymych, I., Khymych, O., Tymoshyk, N., & Podvirna, T., (2021). Corporate culture of organizations in pandemic. Galic'kij ekonomičnij visnik. https://doi.org/10.33108/galicianvisnyk_tntu2021.06.097.

[20]. Yaniieva, D., (2022). EMPLOYEE MOTIVATION SYSTEM OF THE IT SPHERE ORGANIZATION. Innovation and Sustainability. https://doi.org/10.31649/ins.2022.4.186.192.