Does ESG Affect Mental Health of Employees? Focusing on the Moderating Effects of Job Crafting and Relationship Conflict

Abstract

This study examines the dark side of ESG, which has emerged as a new paradigm in that the con-cept is broad and must respond to stakeholder pressure. This study aims to conceptualize Envi-ronmental, Social, and Governance (ESG) stress, or the stress experienced by employees due to ESG, and empirically analyze its impact on mental health. We also examined the moderating effects of job crafting and relationship conflict using the job demand-resource model. Based on a survey of 228 ESG managers with at least five years of work experience, the results of the regres-sion analysis are as follows. First, ESG stress (ESG complexity and ESG uncertainty) was found to cause depression, a negative mental health outcome. Second, job creation was found to moderate depression caused by ESG stress (ESG complexity and ESG uncertainty). Third, relationship conflict was found to reinforce depression caused by ESG stress (ESG complexity and ESG uncertainty). This study is significant because it identifies the relationship between ESG stress and mental health, as ESG has become a requirement for corporate sustainability. Additionally, this study is expected to extend ESG research by examining the moderating effects of job crafting and relationship con-flict from the JD-R on ESG stress and mental health.