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Synergistic ESG practices enhance employee psychological well-being and creativity: experimental evidence from Indonesia
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DOI：10.1007/s10490-026-10168-z.png)
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Abstract
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How do perceived environmental, social, and governance (ESG) practices jointly shape employee outcomes? Drawing on Self-Determination Theory, this study examines the independent and synergistic effects of ESG practices on employee psychological well-being and creativity. We argue that while each ESG dimension can partially satisfy employees’ psychological needs for autonomy, competence, and relatedness, holistic ESG integration more fully fulfils these needs, thereby generating amplified motivational benefits. We test this framework using a 2 × 2 × 2 between-subjects experiment with 833 Indonesian employees, in which descriptions of environmental, social, and governance practices are systematically manipulated through organizational scenarios to capture employees’ perceptions. Results show that each ESG dimension independently enhances employee psychological well-being and creativity, with governance practices exerting the strongest main effects. More importantly, organizations that simultaneously implement environmental, social, and governance practices achieved significantly higher levels of employee psychological well-being and creativity than those adopting fragmented or partial ESG approaches, indicating strong synergistic effects. These findings suggest that ESG practices function as a mutually reinforcing system rather than isolated initiatives. By demonstrating the motivational and creative advantages of integrated ESG strategies in an emerging-economy context, this study advances micro-level ESG research and highlights the importance of comprehensive ESG architectures for fostering sustainable human capital and organizational resilience in Asia-Pacific firms.
Keywords:
Perceived ESG practices
Psychological well-being
Creativity
Self-determination theory
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