Corporate Sustainability Initiatives on Employees and Financial Performance

Article history: Received 15 October 2018 Received in revised form 12 November 2018 Accepted 22 November 2018 Available online 3 December 2018 This study investigates relationship between corporate sustainability initiatives on employee and financial performance. The study adopted a GMM statistical model using a 6-year panel data from 253 companies in Malaysia. Findings from the study reveal the effect of corporate sustainability initiatives on employee and financial performance. Specifically, the study establishes the relationship between employee welfare, employee human rights, employee health and safety, employee training, employee workplace and financial performance. The implication of the study is that enhancing corporate sustainability initiatives on employees promotes productivity and ultimately financial performance as such manager of firms should promote employee welfare, workplace, health and human rights as a means to enhance productivity and financial performance.

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