Unlocking the Power of ESG: How Employee’s ESG Perception Shapes Job Satisfaction through the Enchanting Prism of Perceived External Prestige

[Purpose]As businesses focus more on sustainability, it’s important to see how things like environmental, social, and governance factors (ESG) affect people inside the company. The study explores the impact of employees’ perceptions of ESG (Environmental, Social, and Governance) activities on job satisfaction, with a focus on investigating the mediating role of employees’ perceptions of perceived external prestige (PEP). [Methodology]To investigate the conceptual models and test hypotheses, data were gathered from employees of Korean firms. [Findings]The positive influence on PEP comes from employees’ perceived social and governance activities. In response, PEP positively influences employee job satisfaction. Notably, the perceived environmental activity does not have a significant impact on PEP. [Implications]This study provides valuable insights that can be strategically applied in planning ESG activities to enhance employee perception and contribute to overall organizational success.