Impact of Socio-Political and Reputation Risks on Corporate Social Sustainability via Employee Risk Awareness as a Mediator

Lee, Si Hui (2024) Impact of Socio-Political and Reputation Risks on Corporate Social Sustainability via Employee Risk Awareness as a Mediator. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

Recent global environmental uncertainties, like the COVID-19 pandemic and regional conflicts, highlight interconnectivity. Amidst these challenges, corporate social sustainability (CSS) management has become increasingly indispensable in addressing global challenges spanning political, social, and economic spheres. However, there remains a gap in understanding the impact of employee risk awareness (ERA) on CSS, particularly in the Malaysian context. This study investigates the factors influencing CSS in Malaysia, with a focus on ERA as a mediator between reputational risk (RR), socio-political risk (SPR), and CSS. Drawing on theoretical frameworks such as Social Identity Theory (SIT) and the Attitude-Behaviour-Context (ABC) Theory, the research hypothesises positive relationships between RR, SPR, ERA, and CSS. Through quantitative methods and structural equation modelling, the study reveals significant relationships between RR, SPR, ERA, and CSS. Specifically, it finds that RR positively influences ERA, which in turn impacts CSS. However, contrary to expectations, SPR does not significantly influence CSS directly but does so indirectly through ERA. Theoretical implications highlight the importance of understanding the complex dynamics between organisational risks and sustainability efforts, while practical implications underscore the need for organisations to foster a culture of risk awareness among employees to promote CSS effectively