{"title":"Effects of Executive Sustainability Compensation on Nonexecutive Employee Behavior","authors":"Natalie Rupp","doi":"10.1002/bse.71630","DOIUrl":null,"url":null,"abstract":"ABSTRACT In response to growing awareness of climate change and increasing regulatory sustainability requirements, many companies now link executive compensation to specific sustainability criteria. Although prior research has examined the effects of such incentives on executive behavior, this study explores how executive sustainability‐linked compensation and leadership tone influence the sustainable behavior of nonexecutive employees. Using an online experiment, I find that informing nonexecutive employees about executive bonuses tied to sustainability targets significantly increases their likelihood of making sustainable decisions. In contrast, tone from the top information does not have a statistically significant effect. The results have important implications for theory, practice, and policy by highlighting transparent communication of sustainability‐linked executive incentives as a simple yet powerful tool for fostering sustainable change among nonexecutive employees as well. Ultimately, this study contributes to advancing the understanding of employee‐level sustainability efforts and offers practical strategies to support the sustainable transformation of business and society.","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"55 1","pages":""},"PeriodicalIF":13.2000,"publicationDate":"2026-10-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Business Strategy and The Environment","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1002/bse.71630","RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
ABSTRACT In response to growing awareness of climate change and increasing regulatory sustainability requirements, many companies now link executive compensation to specific sustainability criteria. Although prior research has examined the effects of such incentives on executive behavior, this study explores how executive sustainability‐linked compensation and leadership tone influence the sustainable behavior of nonexecutive employees. Using an online experiment, I find that informing nonexecutive employees about executive bonuses tied to sustainability targets significantly increases their likelihood of making sustainable decisions. In contrast, tone from the top information does not have a statistically significant effect. The results have important implications for theory, practice, and policy by highlighting transparent communication of sustainability‐linked executive incentives as a simple yet powerful tool for fostering sustainable change among nonexecutive employees as well. Ultimately, this study contributes to advancing the understanding of employee‐level sustainability efforts and offers practical strategies to support the sustainable transformation of business and society.
期刊介绍:
Business Strategy and the Environment (BSE) is a leading academic journal focused on business strategies for improving the natural environment. It publishes peer-reviewed research on various topics such as systems and standards, environmental performance, disclosure, eco-innovation, corporate environmental management tools, organizations and management, supply chains, circular economy, governance, green finance, industry sectors, and responses to climate change and other contemporary environmental issues. The journal aims to provide original contributions that enhance the understanding of sustainability in business. Its target audience includes academics, practitioners, business managers, and consultants. However, BSE does not accept papers on corporate social responsibility (CSR), as this topic is covered by its sibling journal Corporate Social Responsibility and Environmental Management. The journal is indexed in several databases and collections such as ABI/INFORM Collection, Agricultural & Environmental Science Database, BIOBASE, Emerald Management Reviews, GeoArchive, Environment Index, GEOBASE, INSPEC, Technology Collection, and Web of Science.