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Article

Fostering Green Behavior in the Workplace: The Role of Ethical Climate, Motivation States, and Environmental Knowledge

by
Usman Sarwar
1,
Waqas Baig
1,
Samar Rahi
1 and
Sonia Sattar
2,*
1
Hailey College of Banking & Finance, University of the Punjab, Lahore P.O. Box 54590, Pakistan
2
School of Economics & Management, Beijing Institute of Technology, Beijing 100811, China
*
Author to whom correspondence should be addressed.
Sustainability 2025, 17(9), 4083; https://doi.org/10.3390/su17094083
Submission received: 28 February 2025 / Revised: 15 April 2025 / Accepted: 16 April 2025 / Published: 1 May 2025
(This article belongs to the Section Economic and Business Aspects of Sustainability)

Abstract

:
The premise of this research is to investigate the influence of an ethical climate on the environmentally responsible behavior of employees within the accommodation sector in Pakistan. We further seek to understand this connection through the intermediation of motivation states and contingency of ethical knowledge. For this purpose, we gathered data from a sample of 290 managers serving at middle and top levels in the accommodation sector of Pakistan, employing an adapted version of the quantitative research instrument. We used Structural Equation Modeling (SEM) to test the hypothesis. We found that (1) ethical climate cultivates green behaviors and (2) motivational states partially mediate the association between ethical climate and green behavior. Additionally, (3) the influence of ethical climate on motivational states is found to be stronger in the presence of environmental knowledge. These findings apply to the accommodation sector, where hotel managers can cultivate green behavior by fostering an ethical climate and enhancing motivational states and environmental knowledge. We added empirical justification to social capital theory by enhancing the understanding of ethical climate-driven pro-environmental behavior through intermediation and intensifier.

1. Introduction

The notion of safeguarding the natural environment in order to achieve sustainable development on a global scale has been in existence since the inception of the initial economic, social, and cultural development initiative. This commitment has persisted throughout successive programs, mirroring the actions taken by other nations worldwide [1]. Nevertheless, the pace at which environmental deterioration occurs exceeds the anticipated restoration efforts implemented by development initiatives and regulatory programs [2]. Intermittent and inconsequential enhancements can be discerned across various environmental indices, norms, and green initiatives. Hence, the ensuing inquiry needs to be posed: What is the underlying reason for this lack and disparity [3]?
Despite the implementation of numerous rules and regulations by governmental and regulatory institutions, organizations worldwide have encountered significant challenges in their endeavors to enhance environmental circumstances [4]. According to Hajli [5], a further salient aspect pertains to the phenomenon wherein individuals occasionally exhibit cynical dispositions while concurrently professing their apprehension regarding those matters, both on an individual and organizational scale. These phenomena can be observed even within national organizations that operate on an international scale [6]. These organizations opt to acquire internationally recognized environmental standard certifications, primarily with the intention of gaining recognition or obtaining authorization to export their products [7]. Meanwhile, their employees and managers only carry out predetermined actions in order to meet the certification requirements set by regulatory bodies following inspections. The occurrence of this immoral behavior can be ascribed to compliance with hierarchical regulations, lack of knowledge, and insufficient encouragement of environmentally friendly practices by governing bodies [8].
In essence, Employees’ Green Behavior (EGB) is considered beneficial for society because it encompasses efforts to uphold societal rights and fulfill societal expectations. In recent times, there has been a noticeable trend among corporations to pursue the development of motivational states (MOSs). These states involve the adoption of a set of rules aimed at achieving a harmonious equilibrium among many stakeholders, including suppliers, society, and consumers [9]. Furthermore, it is critical to recognize the critical role this element plays in promoting competitiveness, enabling sustainable growth, and realizing organizational objectives. Through the application of MOSs, our goal exceeds shareholder satisfaction. This tactic is thought to be helpful in guiding firms through the process of producing value for their stakeholders. Reducing the negative environmental effects of an organization’s operations is a critical component that affects a company’s sense of purpose, societal standing, and general satisfaction.
Apart from the current approaches concerning motivating moods and their manifestation, another critical matter concerns the cultivation of environmental knowledge in the workplace [6]. It includes equipping the workforce with an understanding of environmental issues. Notably, workers’ motivation is greatly affected by the ethical climate (EC) since it is directly associated with their perception of the workplace and subsequent behavior. Educating employees regarding environmental practices serves as the catalyst for sustainable behaviors [10]. The efficacy of organizations in addressing environmental concerns is contingent upon the strategic methodology they utilize to resolve these issues and allocate their resources [11]. There are a number of tactics that can be used to encourage and inspire employees to regularly exhibit these behaviors. Teaching staff members about potential environmental effects and catastrophe mitigation techniques is one strategy. People who believe they can make a difference in their workplace are more likely to engage in preventative behaviors [6,12]. Preventive practices are significantly influenced by people’s beliefs about their capacity to change behavior [12]. Likewise, educating them on the need to participate in environmentally friendly projects requires sincere efforts wherein organizations need to determine the underlying causes of voluntary behaviors in order to encourage employee participation in them [3].
Social capital theory (SCT) posits that trusts and norms dictate human behavior [13]. Under this stance, the EC is viewed to stimulate the sense of belonging wherein employee builds their trust in the organization, leading to ethical behaviors. Although this phenomenon has been studied earlier by many researchers [14], it needs an added perspective to enhance the understanding of theory and practice. For instance, a reflection on the intermediation of motivational states is missing, which could help managers better translate the effect of climate on behaviors. Further, it requires attention to the knowledge perspective, which could essentially hinder the promotion of EGB driven by EC. In addition to this, the existing research on EGB has contradictions and needs validation [15,16].
Cognizant of the previous debate, we attempt to establish a moderated mediated framework to fill this gap by explaining EC-driven EGB with intermediation (MOS) and spark (EK). Thus, we propose three research questions: (1) Does an ethical climate (EC) cultivate employee green behavior (EGB)? (2) Do motivational states (MOSs) mediate the connection between EC and EGB? (3) Does environmental knowledge (EK) moderate the influence of EC on EGB? To achieve these objectives, the organization of this research is made systematic, and we have divided it into five sections. Section 1 provides the introduction supported by the establishment of the background, significance, and objectives. Section 2 brings the synthesized literature related to this research and a theoretical framework. Section 3 explains the methodology, which is followed by results and discussion in Section 4. Lastly, this study provides the conclusion, drawing attention to limitations and the conclusion in addition to summarizing the entire research.

2. Literature Review

Human behavior is learned through observation, reinforcement, and internalization that stems from one’s social circle [13]. Likewise, employee behavior is shaped within an organizational environment where trust, norms, and the nature of relationships play an essential role. For instance, when an organization promotes trust, employees reciprocate in the shape of increased performance. In essence, institutional efforts are transformed into individual efforts. Among various institutional efforts, promoting EC cultivates ethical behavior in employees through trust building, prosocial norms, reducing conflicts, and protecting psychological safety. EC refers to the collective perception regarding values, norms, and practices, such as a sense of caring, trust, and integrity.
The premise of promoting EC remains in alignment with employee behaviors. According to SCT, when employees experience an ethical climate added by environmental concerns, their efforts are aligned with pro-environmental tasks such as green behavior [11]. EGB refers to the behavior consistent with environmental sustainability goals, either generated voluntarily or mandatorily [17]. When employees are treated ethically, they reciprocate it with productive behavior, including EGB. The mandatory requirement varies across organizations, while voluntary green initiatives encompass minimum paper usage and innovative ideas to reduce carbon footprints.
The transition between EC and EGB is intermediated by motivation, which is formed through trust. Motivation may be categorized as intrinsic and extrinsic, wherein the former belongs to self-satisfaction, which is also referred to as autonomous motivation. Conversely, extrinsic motivation comes from external sources such as reward, achievement, or some external outcome [18]. Besides intrinsic or extrinsic components, it plays a collective role in translating EC effects into EGB. Additionally, the effect of EC on EGB is expected to be greater in the presence of EK. According to the literature, EK refers to individuals’ familiarity with issues related to the environment, such as climate change and carbon footprints. Those employees who possess greater EK are more likely to propose innovative ideas and highlight unsustainable practices. Thus, the connection between EC and EGB is better understood in the presence of MOSs and EK.

2.1. Ethical Climate and Employee Green Behavior

The organizational climate reflects shared values and morality. Weber and Opoku-Dakwa [19] explained that the organizational climate includes an ethical environment. Likewise, the research of Zhao and Colleagues [4] demonstrates that an organization’s ethical context is linked to its norms, which directly affect its operations and have ethical implications. Support and trust in an organization affect the environment, especially people’s mental and emotional health [20]. These models enable organizational sustainability correlation analysis. Different types of EC have been studied in decision-making [21]. The above types include social–legalist, nurturing, autonomy-promoting, instrumental, and organizational–legalistic climates [22].
An organization’s view of its multiple work processes and procedures that lead to ethical principles is called its ethical climate. A caring workplace prioritizes the well-being of all employees by showing genuine concern for others [23]. In a legalistic social context, organizational rules and regulations are followed and enforced. In an ethical environment, the company expects all employees to follow the rules. In a utilitarian workplace, employees must put the company first and follow the rules [24]. A corporation creates an autonomous atmosphere when it allows employees to express their ethical views and understanding. Detailed investigation of these environmental variables reveals justice-related components. An organization’s climate of caring shows a genuine concern for its employees, which leads to favorable justice judgments [19].
Green conduct has traditionally been optional workplace behavior [25]. However, organizational psychologists agree that not all EGB is discretionary [26]. Additionally, five job-performance-based categories of EGB were proposed. These include taking initiative, avoiding harm, influencing people, using sustainable work practices, and conserving resources. This category indirectly acknowledges required and discretionary acts [27]. These categories help link the behavior to multiple groups.
This behavior requires employee participation and enhances business values directly or indirectly. In EGB, an employee is urged to exceed the organization’s basic environmental criteria voluntarily. EGB is the individual’s proactive sustainable practices that exceed the organization’s basic expectations. Green behavior at an organization includes prioritizing environmental issues, establishing environmental programs and laws, lobbying and advocating, and influencing others to adopt sustainable practices. Consistent with SCT (social cognitive theory), Bandura [13] explains how ethical context affects EGB. The environment greatly affects learning. Next, people use cognitive processes to internalize and absorb knowledge and apply it in the same situation. Voluntary extra-role behavior is strongly linked to organizational citizenship behavior (OCB) and contextual performance. Kim and fellows defined these terms as acts that create an organizational, psychological, and social environment for task performance [27]. Prior research supports discretionary green behavior [28]. Thus, this study seeks to completely analyze the multiple links between the EC and organizational EGB.
This research, however, follows that the idea of ethical climate-driven green behavior is rooted in SCT. As mentioned earlier, SCT stresses the contribution of trust, relations, and networks in human behavior. An EC that supports sustainability and environmental concern fosters pro-environmental behaviors. When employees experience an eco-friendly climate at their workplace, they exhibit similar behavior [29]. In essence, this connection is a transition that originates from organizational efforts (i.e., fostering an ethical climate that supports environmental concern) and ends upon employee’s efforts (i.e., exhibiting pro-environmental initiatives). This transition is mainly supported by the element of trust embedded in SCT. Workers are more likely to volunteer innovative solutions if they feel (trust) that their efforts will be encouraged. The work of Farooq and colleagues, for instance, proposed that sustainable ideas, such as participation in environmental campaigns and reduction in paper usage, are more frequently discussed in an ethical climate due to employee’s perception of being listened to and encouraged [30]. Likewise, promoting an ethical climate also reduces the resistance barrier that enables employees to even challenge unsustainable practices without fear of conflict. Based on these arguments, we propose the following hypothesis:
H1. 
An EC has a significant positive relationship with EGB.

2.2. Relationship Between Ethical Climate and the Motivational States

Vanello described motivation as the struggle to reach one’s full potential, succeed, and feel competent [31]. Motivation achievement is considered to stir up energy. Without a completion incentive, worker unhappiness can increase workplace discontent [32]. Another work defines motivation for achievement as a strong desire to complete tasks according to preset criteria and to engage in business activities to achieve success [33]. Individual accomplishment motivation comes from two main factors: the desire to succeed and the desire to avoid failure [34]. People who prefer success to failure are more responsive in numerous situations.
Personal passion for a goal or success is directly linked to motivation. Achieving motivation implies that a person’s motivation depends on their goals. Zhang and fellows defined motivation attainment as the cognitive ability to perform behaviors that are better, faster, more effective, and more efficient [17]. Similarly, Hu and colleagues classified motivation as power, affinity, and achievement [35]. Power ambitions can be portrayed positively or negatively. Two types of affiliate motives exist: interest and assurance. Strong ties make people more likely to predict others’ feelings and opinions. The completion of duties and great performance are their main goals. Individuals use motivating techniques by working hard and taking calculated risks. It motivates people to take responsibility and seek feedback on their accomplishments.
The nexus between an EC and MOS is grounded in SCT, which emphasizes the role of trust, norms, and relations in determining individual and organizational well-being. An ethical climate serves as a fertile ground for cultivating motivation through forming the perception of ethical practices. Such perception stimulates motivation-driven behaviors. In essence, trust and reciprocity provide the foundation to demonstrate the connection between an EC and MOS. When employees experience fairness and accountability, their trust level increases, which energizes them to reciprocate [36]. Additionally, an EC fosters prosocial norms such as honesty and mutual respect, which bind the individual and organizational goals, leading to the achievement of employee motivation [37]. Further, an EC protects psychological safety and reduces conflicts, which enables employees to receive fair treatment and acknowledge their efforts [38]. Thus, the organizational efforts to promote an ethical climate stimulate employees’ efforts to fulfill their tasks with diligence. Based on these arguments, we seek to empirically investigate the relationship between an EC and MOS in the hotel industry.
H2a. 
An EC has a significant positive relationship with MOS.

2.3. Relationship Between Motivational States and Employee Green Behavior

Reflecting on SCT, a strong connection exists between MOS and EGB. Motivation is an energy that drives workers’ efforts to pursue a particular task [39]. When it activates, a certain behavior may be predicted. For instance, Zacher and fellows pointed out that employees exhibit sustainable behavior when they are motivated [40]. Notably, the origin of such force may come internally or externally [41]. The work of Siyal and colleagues proposed that motivated employees are more likely to share innovative ideas and participate in volunteer work [42]. Further, motivation is a psychological process that may be dictated. Its direction may have deep-rooted impacts on organizational success. Thus, it is necessary for organizations to control motivation. According to existing knowledge, employee motivation has a significant connection with pro-environment behaviors [43]. Additionally, motivated workers are more likely to promote EGB and green projects [44]. Based on these arguments, we seek to test the direct connection between MOS and EGB. This direct hypothesis would provide the foundation for mediation analysis. Thus, the following hypothesis is established:
H2b. 
MOS significantly influences EGB.

2.4. Motivational States as a Mediator

Climate provides the fertile ground to nourish motivation. For instance, a green psychological climate motivates employees to engage in EGB and reduce non-green activities. Bandura’s SCT shed light on this transitional relationship [13]. An environmental climate in the organization makes employees feel valued and engaged, enhancing their environmental responsibility [45]. Motivation boosts followers’ confidence, creativity, excitement, ingenuity, vision, and empowerment [28]. Employees who perceive a workplace filled with ethics are psychologically empowered, making them motivated. In essence, an ethical climate promotes trust, equity, and integrity, which binds workers to act in the best interest of their organization. Bamberg and fellows found that motivated workers are more self-confident, happy, active, and responsible [46]. In essence, these attributes boost job performance. According to prior research, fair treatment boosts one’s sense of loyalty to the employer, and employees having this sense raise their effort of good to their workplace [28]. Following the assertion that employee motivation and good deeds are linked and the discussion made in the previous two sections related to interconnection of climate, motivation, and behavior, we hypothesize that motivation states play an intermediating role. Particularly, a green climate may motivate employees to engage in pro-environmental behaviors and reduce non-green behavior. Thus, we propose the following hypothesis:
H3. 
MOS significantly mediates the relation between the EC and EGB.

2.5. Environmental Knowledge as Moderator

Generally, EK refers to the understanding of environemtal issues such as climate change, and carbon footprints. According to the literature, employees’ knowledge about environmental issues dictates their perception and attitude to purchase green products [47]. This evidence infers that EK drives sustainable behavior, and one’s willingness to engage relies on trust in green initiatives [48]. Those who possess limited environmental knowledge remain uninformed and do not fit in environmentally friendly organizations [49]. Additionally, EK has a close association with sustainable practices. Overall, it serves as the cornerstone in promoting pro-environmental behavior.
Several environmental challenges, such as product packaging and carbon emissions, are resolved effectively through EK. The work of Safari and fellows found that employees with greater EK are better positioned than others in terms of sustainable behavior [15]. Even such knowledge helps them to make a better place at work. Although an EC cultivates EGB through motivation, this relationship may be hindered in the absence of appropriate EK. Hence, highlighting the contingent role of EK in EC-driven EGB through MOS is crucial to enhance understanding. Based on this discussion, the following hypothesis is framed.
H4. 
EK positively moderates between the EC and MOS.

2.6. Theoretical Framework

This research examines the transition from organizational climate initiatives to workers’ behavior. Based on the literature survey, we developed four hypotheses presented in the theoretical framework (Figure 1), which contain four constructs connected with direct and indirect paths guided by SCT. Among these four hypotheses, the first two represent direct paths (H1, H2a & H2b), while the remaining two represent indirect paths (H3 & H4).

3. Methods

3.1. Research Design

Pakistan is presently facing considerable scrutiny over environmental disruption due to its intensified industrial growth [50]. According to the Environmental Performance Index (2020), Pakistan ranks 169th in environmental performance [51]. Following this situation, this study aims to investigate the impact of an EC on EGB, including the moderating role of EK and mediating role of MOS. This research utilized a quantitative technique to examine the accommodation sector in Pakistan based on the positivist philosophy. We employed an adaptive version questionnaire to collect data from hotel managers working in the middle and top ranks who are better positioned to provide information regarding ethical initiatives.
We conducted several diagnostic tests to check the quality of data and their normality prior to central analysis. According to prior research, when complete data are obtained from the same source or method or at the same time in survey research, there is a greater likelihood of a prevalence of common method biases [52]. We carefully conducted a common method bias test using Harman’s single-factor approach, wherein a single factor must explain less than 50% of the total explained variation [53]. Our results provided 39.16% maximum variation explained by a single factor. Hence, we confirmed the absence of common method biases in our data.
The questionnaire has been divided into two separate components. The initial part contains extensive information on all variables, while the succeeding part focuses only on the demographic features of the research participants. We collected data from different hotel managers within the accommodation sector in Pakistan. Among the distributed questionnaires, we received 290 in total, forming a 72.5% response rate. Subsequently, we ran reliability and validity tests to ensure the quality of the instrument following prior survey research [54]. Further, a regression test was employed to draw conclusions using AMOS software (version 28). This study utilizes the Structural Equation Modeling (SEM) approach. In essence, SEM has been classified into two categories: variance-based SEM and covariance-based SEM. We employed covariance-based SEM in our data analysis.

3.2. Measures

The research framework of this research contained four constructs, including an independent variable (EC), a dependent variable (EGB), a mediator (MOS), and a moderator (EK). We borrowed scales from the literature and employed a robust approach to ensure their fitness. Initially, the scale was adopted from quality published journals, and later, subsequent reliability and validity tests were employed to ensure their reliability and validity. We measured EC with six-item scales adapted from the work of Schwenker [55]. These scales capture the organizational efforts directed to the promotion of ethical climate on a five-point Likert scale. Likewise, we measured EK with a three-item Likert scale adopted from the research of Fawehinmi and fellows [56]. It mainly measures the individual’s level of understanding regarding environmental concepts. Similarly, we measured MOS with a twelve-item scale initially developed by Meyer and colleagues [57]. This scale contains different motivation categories, such as intrinsic and extrinsic, which are unified in a single construct. However, this scale was measured with different response anchors ranging from never to frequently. Lastly, we took a 12-item scale from the work of Bissing-Olson and fellows to measure EGB [58].

4. Results and Discussion

4.1. Demography of the Study

Understanding the study participants is fundamental to research analysis as it helps clarify the context, accommodate comparisons, and facilitate interpretations. Table 1 clearly represents the demographic distribution in relation to the organization’s name, gender, qualification, designation, department, and total experience. Providing a brief reflection on it, the data indicate a male-dominated sample, with a nearly 70-percent presence of male respondents. Further, the sample represents the majority of master’s degree holders. Concerning sample experience, around 40 percent of respondents possess more than 10 years of experience. Likewise, around 40 percent of hotels are small-scale.

4.2. Data Normality Analysis

The assessment of data normality is essential as it serves as the selection point for the type of analysis to be performed. For instance, normal data are supported by parametric tests, whereas abnormal data are analyzed with non-parametric tests. Based on our normality analysis outcome in Table 2, the data exhibit a normal distribution, wherein the skewness value, determined through the application of Bulmer’s rule of thumb, is expected to fall within the range of +1 to −1. The data contain a normal distribution since the resultant values fall within the acceptable range. Likewise, the kurtosis value, computed using MacGillivary and Balandin’s method, is anticipated to fall within the interval of +3 to −3. It also remains within boundaries; therefore, we propose the data have a normal distribution.

4.3. Reliability and Validity Analysis

We performed reliability analysis to evaluate the instrument items to test the potential disruptive variables. Based on the conventional guideline, a Cronbach’s alpha coefficient beyond 0.7 is typically regarded as satisfactory, surpassing 0.8 is preferable, and surpassing 0.9 is ideal for assessing the reliability of an instrument. Following these guidelines, Table 3 demonstrates that all variables exhibit a Cronbach’s alpha coefficient surpassing the threshold, widely acknowledged as indicative of strong internal consistency. In addition, it is worth noting that the instrument has a commendable level of reliability, surpassing the threshold, indicating highly favorable results.
Discriminant validity is the degree to which study constructs vary among each other [59]. Similarly, Hair and colleagues defined discriminant validity as the degree to which a study measure varies from another measure in an empirical model [60]. The discriminant validity is measured through the generally accepted method introduced by the Fornell–Larcker criterion for the present study [61]. This approach links the square root of Average Variance Explained (AVE) numerical values with each latent variable’s correlational values. For discriminant validity, it is essential to note that all the diagonal and off-diagonal values are less than 0.90. The values of the diagonals are greater than those of other values in the rows. Table 4 clearly shows that all values fall under the threshold limit. Hence, the instrument has established discriminant validity.
According to Table 5, a two-tailed test at a significance level of 0.01 indicates that the correlation is statistically significant, and the same is observed at a significance level of 0.05. The correlation matrix should range from 0 to 1, with p-values of 0.01 and 0.05 being significant. A correlation coefficient of 1 indicates an influential association between the independent and dependent variables, while a 0 indicates no association between the variables. As the table above shows, all variables display a highly significant correlation at the 1% significance level.

4.4. Model Fitness Assessment

The data in this study underwent analysis and presentation through the utilization of Structural Equation Modeling (SEM), a statistical technique that encompasses factor analysis, route analysis, and regression. This methodology is advantageous for scrutinizing inferential variables and comprehending both confirmatory and foundational models. Confirmatory Factor Analysis (CFA) was performed to assess the reliability of the model using AMOS (version 28). Hu and fellows described that the Comparative Fit Index (CFI), which serves as an indicator of the model’s goodness of fit, is expected to fall within the range of 0 to 1 [62]. According to Table 6, the observed values for the model in this investigation were found to be within the acceptable range.

4.5. Direct Path Analysis

Subsequent to reliability and validity assessment, we employed path analysis, wherein the direct paths are presented in this section. The outcome of direct effects is depicted in Table 7, which shows the structural model assessment containing three direct paths. Notably, all direct paths are significant, and the direction of the relationship is positive. For instance, the coefficient and standard error value in the first direct path (H1: EC > EGB) reached the significance level, and the impact of an EC on EGB was significant. Further, the direction of the relationship is positive (B = 0.435, t = 10.64). The results infer that an ethical climate cultivates employee green behavior (Figure 2). Likewise, the other two paths also provided similar results.

4.6. Mediation Analysis

The mediation analysis in this study was conducted using the bootstrapping method with AMOS software (version 28). The mediator is a component of the model that aids in enhancing the clarity of the link between the variables. The mediation analysis revealed a statistically significant direct association between the independent variable, EC, and the dependent variable, EGB. According to Figure 3, the beta coefficient (β) for this relationship was 0.53, with a p-value of 0.001. The observed link between the independent variable (IV) and dependent variable (DV) in the presence of a mediator is statistically significant, with a beta coefficient of 0.230 and a p-value of 0.001. The statistical analysis reveals a substantial indirect association between the variables, with a coefficient of β = 0.048 and a p-value of p = 0.001. The significance of the correlations between the variables remains consistent, regardless of the presence or absence of a mediator. This finding suggests the presence of partial mediation between the variables.

4.7. Moderation Analysis

This study examines the moderation effect using AMOS software (version 28) and interprets the results using graphical representations provided by the stat-tool wiki (Figure 4). The unstandardized regression coefficients (B) were computed for all variables. The initial variable, EC (IV), exhibits an unstandardized regression coefficient of B1 = 0.422 (p = 0.002). The second variable, EK (moderator), has an unstandardized regression coefficient of B2 = 0.350 (p = 0.000). The third variable in the study indicates the interaction between the independent variable of EC, the dependent variable of motivation, and the moderator of EK. The unstandardized regression coefficient for this interaction is B3 = 0.212, which is statistically significant with a p-value of 0.000. The results of this study indicate that the use of EK has a positive impact on the relationship between an EC (independent variable) and motivation (dependent variable). Subsequent to moderation assessment, conclusion of all hypotheses is summarized in Table 8.

4.8. Discussion on Findings

The first hypothesis proposed a positive relationship between an EC and EGB in light of SCT. Accordingly, we found a positive and significant connection (B = 0.435, t = 10.64), inferring that climate dictates behavior. Our results are consistent with prior research, such as the work of Usman and fellows, wherein it was established that the organizational climate derives sustainable behaviors such as participation in environmental campaigns [29]. Further, our results support Weber and Opoku-Dakwa because they proposed that an ethical climate promotes justice and commitment at the workplace, which urges employees to reciprocate with pro-environmental behaviors [19]. This proposition is also traceable from the work of Marquardt and colleagues, wherein it was found that organizational priorities toward ethical concerns are reflected in employees’ reciprocated actions [23]. These findings are also consistent with SCT because they prove that employee behaviors are driven by norms that an organization promotes. An ethical climate promotes a flexible culture wherein trust nourishes and binds individual and organizational goals. Accordingly, the research of Farooq and companions also pointed out that employees’ perception of ethical treatment encourages them to raise their concerns about sustainable practices, which is consistent with our claim [30]. It implies how social capital covered in an ethical climate fosters cooperation and provokes green behaviors. In addition, employees exhibit green behaviors in three forms: taking pro-environmental initiatives, avoiding environmental harm, and influencing others to behave pro-environmentally. In conclusion, our findings extend the existing literature by documenting evidence that an ethical climate mobilizes employees’ sustainable behaviors.
Likewise, the second hypothesis (H2a) sheds light on EC-driven MOS supported by SCT. The structural model results were significant and positive (B = 0.426, t = 13.626). Based on these findings, we propose that climate strongly connects with employee psychology. When workers experience an EC, they feel a sense of fair treatment, which cultivates the aspiration to behave ethically. The more supportive culture nourishes, the greater the likelihood of ethical behaviors. These findings are aligned with prior literature, such as the research of Li and his fellow, who proposed that a supportive environment influences psychological health, leaving evidence of the effect of climate on workers’ cognition [38]. In essence, motivation is workers’ effort to achieve a particular task, which is more likely to be prevalent in a psychologically safe culture [31]. This connection is well explained by Patwary and fellows, clarifying that motivation reflects a desire to achieve and avoid failure [34]. Connecting these dots, it is proposed that an ethical climate mitigates fear and boosts confidence, which motivates employees to raise efforts. SCT also supports these findings, as an EC enriches the culture of trust, cooperation, and shared values, which protects employees’ well-being. In essence, such a capital embedded in EC aligns the efforts of the organization and employees, promoting motivational force [37]. Our findings support the hypothesis that an EC fosters MOSs and adds value to SCT by proposing that EC nourishes trust and shares norms that help employees believe in their capacity to raise their effort to achieve desired tasks.
The hypothesis coded by H2b proposed a direct connection between MOS and EGB. According to this, motivated employees are more likely to engage in green behaviors. Our findings also supported a significant positive relationship (B = 0.472, t = 7.499). These findings are also confirmed by SCT, which posits that employee pro-environmental behaviors are the outcome of trust driven by motivation. This proposition is also confirmed by Peker’s research, which emphasized motivation as a strong channel to encourage behaviors [39]. Further, the outcome of the research of Li and his team also strengthens our stance, as they provided that intrinsic or extrinsic motivation modifies human behavior [41]. Similarly, Zacher’s work also pointed out that motivational states are higher in those who exhibit pro-sustainable behaviors [40]. The conclusion of Siyal and fellows also supports our claims, as they pointed out motivation encourages employees to share innovative ideas and participate in environment-related activities voluntarily [42]. Connecting these insights with our findings leads us to conclude that motivation is the driving force to encourage pro-environmental green behaviors.
The hypothesis coded by H3 seeks to explain the indirect effect of EC on EGB through MOS. According to the mediation analysis results (Figure 3), we found that MOS significantly mediates the relationship. SCT supports these findings, as motivation plays a central role in translating ethical initiatives to employee behaviors. Further, these findings are consistent with expectations derived from the literature. According to our findings, an EC is similar to social capital in promoting shared norms, integrity, trust, and mutual respect. A similar proposition is made by prior research, claiming that when employees experience such an environment, they feel valued by the employer [45]. This feeling is further described by Bamberg and Verkuyten; according to them, when employees feel supported by their employer, they exhibit more responsible behavior filled with greater energy [46]. Similarly, Norton’s stance that employer paybacks induce fair treatment regarding increased commitment is close to our findings [28]. Connecting the dots from the literature, such as climate, energy, and commitments, and framing them all in our context, we establish that motivation is fundamental in translating the effect of an ethical climate on employees’ green behavior.
The last hypothesis (H4) proposes that EK significantly moderates the relationship between an EC and MOS. Our findings revealed a significant and positive moderation under the theoretical support of SCT. According to theory, trust, shared norms, and integrity promoted within a climate dictate the behaviors of the underlying workforce. According to Hamzah and Tanwir [47], although an EC cultivates motivation, its true reflection is determined by employees’ level of environmental knowledge. Those organizations where the EC is strong but whose employees lack EK fail to motivate their workforce towards sustainable goals. Ideas of the necessity of knowledge further demonstrated that employees face behavioral challenges due to limited knowledge particularly related to the environment [49]. In essence, EK makes employees better positioned to understand values and norms prevailing under the ethical climate, which enhances their confidence and readiness to act ethically. Hence, employees with greater EK tend to engage in pro-environmental behaviors more than those who lack in this area [15]. Furthermore, Raza and Khan support this idea through demonstrating that trust in ethical initiatives is built on the basis of the level of ethical knowledge [48]. Trust is central to SCT, which connects sustainable efforts with employee motivation, and this connection is stronger where EK is higher. Thus, based on our findings and support from the literature, organizational efforts to promote an ethical climate are better reflected in employee motivation when they possess greater EK.

4.8.1. Theoretical Implications

This work possesses various theoretical implications. The initial topic pertains to the literature on ethical climates, specifically emphasizing the consequences of non-environmentally friendly behavior. Nevertheless, the present study offers a comprehensive and analytical perspective on the impact of climates on EGB, a topic that has not yet been thoroughly investigated in previous research. Based on the research findings, it can be concluded that an EC has a considerable and positive influence on EGB. The observed association aligns with the SCT as proposed by Bandura. Furthermore, EK has been found to enhance employee motivation within the organizational setting, hence positively impacting the overall quality of life experienced by employees. This helps enhance environmentally conscious behavior among employees. Furthermore, our research addresses a pertinent issue raised by investigating the impact of an EC on the behavioral outcomes of followers within the organizational setting. In addition, our research uncovered the presence of a mediating mechanism, specifically the role of motivational states, in the relationship between an EC and EGB, by augmenting our comprehension of the mechanisms that underlie this organizational environment. In this study, EK was recognized as a significant determinant of the impact of EC on the empowerment of employees and the promotion of environmentally sustainable practices. This finding demonstrates that the presence of EK in an organization has a moderating effect on the ethical atmosphere, leading to an increased employee motivational state, ultimately resulting in enhanced employee job performance.

4.8.2. Practical Implications

Contemporary organizations can promote green behaviors by providing a supportive climate. Indeed, it will enhance transparency and fairness followed by sustainability. In essence, employees require fair treatment and trust, which is essential to transform effort into anticipated outcomes. Organizations may foster pro-environmental programs such as renewable resources, reductions in carbon footprints, and waste management. MOSs play the basic role in translating ethical initiative into individual ethical behavior. For this, hotel management either requires mandatory initiatives or encourages voluntary behavior. For instance, mandatory behaviors include ethical training or assignment of ethical activities, while voluntary behavior includes a reduction in paper usage by employees, participation in environmental campaigns, and sharing innovative ideas. For voluntary behaviors, organizations need to encourage them, which is possible through providing a supportive environment. Besides motivation, hotel managers are required to have sufficient knowledge about environmental concepts because it could either trigger green behavior or limit significantly. Thus, our findings serve as the guiding tool to manage EC-driven green behavior, particularly in the accommodation sector.
Organizations should consider implementing employee mentoring schemes in order to attain performance objectives and foster a climate of open communication inside the organization. When engaging in the promotion of current employees and the recruitment of new personnel, managers should inquire about the past environmental performance of the individuals in question. It is recommended that selection and promotion committees incorporate the candidate’s environmental assessment as part of their evaluation process. Moreover, the results of this study carry significant implications for society. It garners public interest towards the socially responsible and environmentally conscious endeavors undertaken by individuals and entities. It also helps organizational leaders in demonstrating environmentally conscious behavior. In essence, this research study elucidates the significance of individual members of society engaging in environmentally friendly behavior as a means of safeguarding the natural environment.

5. Conclusions

This research is mainly a struggle to understand the connection between an EC and EGB. It is guided by SCT to demonstrate this transition through a moderated–mediated framework. We proposed three objectives: the first objective sought to examine the direct effect of an EC on EGB, the second objective studied the mediation of MOSs, and the third objective tested the moderation of EK. We found that an EC cultivates EGB, MOSs intermediated this relation significantly, and EK significantly moderated the direct relationship. The findings are essential for theoretical and practical implications. Overall, we documented that organizations can foster pro-environmental green behavior through an ethical climate, wherein MOSs are encouraged and ethical knowledge is promoted to reflect better outcomes.
Despite the essential consequences and methodological soundness, the current study exhibits certain limitations. The determination of causation in the observed correlations remains inconclusive despite the utilization of a cross-sectional research methodology. The application of a longitudinal research strategy can facilitate the conduct of future studies. Moreover, the restricted scope of data collection exclusively from Pakistan restricts the generalizability of the findings to other national and cultural contexts. In future research endeavors, it is recommended that data collection be expanded to encompass multiple countries, with the aim of investigating the impact of cultural variations on English-language outcomes. Additionally, it would be beneficial to examine behavioral patterns within other cultural contexts, specifically comparing Western and Eastern countries.

Author Contributions

U.S. contributed to supervision and project administration in addition to editing and visualization. W.B. worked on validation, formal analysis, investigation, and writing—original draft preparation. Additionally, S.R. contributed to resources, data curation, and writing improvement. Furthermore, S.S. performed the following tasks: conceptualization, methodology, and software. All authors have read and agreed to the published version of the manuscript.

Funding

This research received no external funding.

Institutional Review Board Statement

The study was conducted in accordance with the Declaration of Helsinki, and approved by the Institutional Ethics Review Board (IRB) of Hailey College of Banking and Finance D-0004523/hcbf 2024-07-03.

Informed Consent Statement

Informed consent was obtained from all subjects involved in the study.

Data Availability Statement

Data will be made available on demand.

Conflicts of Interest

The authors declare no conflicts of interest.

Abbreviations

The following abbreviations are used in this manuscript:
ECEthical Climate
EKEnvironmental Knowledge
MOSMotivation State
EGBEmployee Green Behavior
SCTSocial Capital Theory

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Figure 1. Research model.
Figure 1. Research model.
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Figure 2. Path diagram. Notes: EC = ethical climate; EK = environmental knowledge; MOSs = motivation states; EGB = employee green behavior; AM = autonomous motivation; CM = continuous motivation; GIWB = green innovative work behavior; EREGB = extra-role green behavior; IREGB = In-role green behavior.
Figure 2. Path diagram. Notes: EC = ethical climate; EK = environmental knowledge; MOSs = motivation states; EGB = employee green behavior; AM = autonomous motivation; CM = continuous motivation; GIWB = green innovative work behavior; EREGB = extra-role green behavior; IREGB = In-role green behavior.
Sustainability 17 04083 g002
Figure 3. Mediation analysis.
Figure 3. Mediation analysis.
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Figure 4. Moderation
Figure 4. Moderation
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Table 1. Demographical characteristics of respondents.
Table 1. Demographical characteristics of respondents.
DemographicsCategoriesn%
Small12744
Medium10536
Size of OrganizationLarge5820
Total290100
Female8730
GenderMale20370
Total290100
Graduation8329
QualificationMasters17460
Other3311
Total290100
Middle-Level Manager23782
DesignationTop-Level Manager5318
Total290100
Management19266
DepartmentFinance9834
Total290100
1–5 year9533
Total Experience6–10 year8529
11–15 year6322
16–203612
Above 20 years113.8
Total290100
Table 2. Data skewness, mean, and kurtosis.
Table 2. Data skewness, mean, and kurtosis.
VariablesMeanSt. DeviationSkewnessKurtosis
Ethical Climate3.6390.668−0.381−0.26
Environmental Knowledge3.7580.782−0.7860.637
Motivation3.7770.655−0.340.25
Employee Green Behavior3.6730.647−0.7240.796
Table 3. Reliability analysis.
Table 3. Reliability analysis.
VariableCronbach AlphaItemsAVE
Ethical Climate0.73160.554
Environmental Knowledge0.75330.515
Motivation0.746120.51
Employee Green Behavior0.775120.5
Overall Reliability0.8833
Table 4. Heterotrait–monotrait discriminant validity.
Table 4. Heterotrait–monotrait discriminant validity.
ItemsECEKMOSEGB
EC0.610 **
EK0.404 **0.590 **
MOS0.625 **0.471 **0.699 **
EGB0.531 **0.510 **0.625 **0.700 **
Note: Significance level = **: p < 0.05.
Table 5. Correlation analysis.
Table 5. Correlation analysis.
Items.ECEKMOSEGB
EC1
EK0.404 **1
MOS0.625 **0.471 **1
EGB0.531 **0.510 **0.625 **1
Notes: EC = ethical climate; EK = environmental knowledge; MOS = motivation state; EGB = employee green behavior. Significance level = **: p < 0.05.
Table 6. Fitness summary.
Table 6. Fitness summary.
ModelHypothesizedThresholds
CMIN/DF2.11Less than 3
CFI0.909Near to 0
AGFI0.905Greater or equal to 0.90
GFI0.9Greater or equal to 0.80
RMR0.054Greater or equal to 0.90
RMSEA0.043Less than 0.080
Table 7. Path analysis (direct effects).
Table 7. Path analysis (direct effects).
PathsEstimateS.E.t-Valuep-ValueDecision
H1: EC -> EGB0.435 ***0.04110.64***Accepted
H2a: EC -> MOS0.426 ***0.03113.626***Accepted
H2b: MOS -> EGB0.472 ***0.0637.499***Accepted
Notes: S.E. = standard error. Significance level = ***: p < 0.01
Table 8. Summary of direct and indirect hypothesis assessment.
Table 8. Summary of direct and indirect hypothesis assessment.
HypothesisResults
H1: The EC has a positive relationship with EGB.Accepted
H2a: The EC has a positive relationship with MOS.Accepted
H2b: MOS has a positive relationship with EGB.Accepted
H3: MOS significantly mediates the relationship between the EC and EGB.Accepted
H4: EK positively moderates between the EC and MOS.Accepted
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Sarwar, U.; Baig, W.; Rahi, S.; Sattar, S. Fostering Green Behavior in the Workplace: The Role of Ethical Climate, Motivation States, and Environmental Knowledge. Sustainability 2025, 17, 4083. https://doi.org/10.3390/su17094083

AMA Style

Sarwar U, Baig W, Rahi S, Sattar S. Fostering Green Behavior in the Workplace: The Role of Ethical Climate, Motivation States, and Environmental Knowledge. Sustainability. 2025; 17(9):4083. https://doi.org/10.3390/su17094083

Chicago/Turabian Style

Sarwar, Usman, Waqas Baig, Samar Rahi, and Sonia Sattar. 2025. "Fostering Green Behavior in the Workplace: The Role of Ethical Climate, Motivation States, and Environmental Knowledge" Sustainability 17, no. 9: 4083. https://doi.org/10.3390/su17094083

APA Style

Sarwar, U., Baig, W., Rahi, S., & Sattar, S. (2025). Fostering Green Behavior in the Workplace: The Role of Ethical Climate, Motivation States, and Environmental Knowledge. Sustainability, 17(9), 4083. https://doi.org/10.3390/su17094083

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