Let leaders permit nature! Role of employee engagement, environmental values, and sustainable behavioral intentions

Abstract

The current study examines the relationship between authentic leadership and sustainable behavior intention among employees. We also tested employee engagement as a mediator and environmental value as a boundary condition in Danish manufacturing firms. The data from 346 respondents were obtained using time‐lagged and multi‐respondent techniques, and the data were analyzed using structural equation modeling. The results revealed that authentic leadership directly impacts sustainable behavior intentions whereas cognitive and behavioral employee engagement mediates the relationship between authentic leadership and sustainable behavioral intentions. Additionally, environmental values strengthen the positive relationship between employee engagement's cognitive and behavioral dimensions and sustainable behavioral intentions. This study advances the social exchange theory by empirically testing the beneficial effects of authentic leadership and employee engagement on the intention to engage in sustainable behavior. We also propose that practitioners emphasize authentic leadership as it can foster employees' environmental values and sustainable behavior intentions that are helpful for the organization's and society's sustainability.