When they are more than just employees: Environmentally conscious decision-making in employee-owned organizations

Promoting environmental sustainability may hold relevance for employee-owned organizations since their employees prioritize the long-term well-being of the business as they influence and are influenced by the legacy of the organization. The integration of environmental consciousness into decision-making has thus the potential to help align environmental and organizational sustainability objectives in these organizations. However, the literature lacks an explanation of how employee-owned organizations make environmentally conscious decisions. In this study, we conducted interviews with top executives of employee-owned organizations to explore how environmentally conscious decision-making unfolds in the experiences of these managers. We find that transparency and delegation of authority serve as two key mechanisms that underlie environmentally conscious decision-making in employee-owned organizations. We also find three paths inspired by these mechanisms that employee-owned organizations follow in making environmentally conscious decisions. We discuss the implications of these mechanisms and paths for research and practice.