Enhancing Employer Branding through ESG Practices: A Study on Malaysian Micro Enterprises

Abstract

Purpose - This conceptual paper aims to investigate the influence of environmental, social and governance (ESG) practices on employer branding of Malaysian micro enterprises. The authors posit that organization’s ESG practices have a positive influence on employer branding. Design/methodology/approach – This paper establishes a conceptual framework by thoroughly reviewing existing literature on ESG practices and employer branding. It builds upon existing research while adding unique insights to deepen the understanding of the subject.  Findings - The proposed conceptual framework highlights the importance of ESG practices in enhancing employer branding of Malaysian micro enterprises. The framework emphasizes the role of environmental, social and governance practices in shaping employees’ perception of employer branding. Research limitations/implications - This paper offers a conceptual framework founded upon Social Identity Theory. As the framework is not empirically tested, further research is necessary to test, validate and refine the framework.  Practical implications – Micro enterprises should undertake more ESG practices to enhance employer branding by recognizing the importance of ESG practices in shaping positive employee behaviours and contributing to organizational performance. Originality/value - This study presents a novel approach to examine the influence of individual ESG practices on employer branding. It enriches the current body of literature on micro enterprises which is scarcely studied as a target population in extant literature and provides fresh insights for academics and practitioners in the field of organizational behaviour and brand management.