Inclusive Leadership, Well-being, and Sustainable Performance: Environmental Awareness as Mediator in a Central Bank
DOI:
https://doi.org/10.70550/joseb.v3i3.718Keywords:
Inclusive Leadership, Employee Well-being, Environmental Awareness, Sustainable Performance, Bank IndonesiaAbstract
Objectives: Currency management inside a central bank pairs rigid procedural control with a sizeable ecological footprint, yet how leadership and employee welfare convert into sustainability outcomes in such a setting has not been tested. This study examines whether employee environmental awareness carries the effect of inclusive leadership and employee well-being on sustainable performance.
Methodology: Survey data were obtained from 142 employees of the Currency Management Department of Bank Indonesia through purposive sampling. Thirty-six items on a five-point Likert scale measured four latent constructs. Partial least squares structural equation modeling was run in SmartPLS 4.1 with 5,000 bootstrap subsamples.
Finding: Six of seven hypotheses were supported. Employee well-being raised sustainable performance (β = 0.308; p = 0.027), whereas inclusive leadership did not (β = 0.103; p = 0.389). Both antecedents predicted environmental awareness, which proved the strongest driver of sustainable performance (β = 0.467; f² = 0.306). Mediation was indirect-only for leadership and complementary for well-being.
Conclusion: Awareness, not directive influence, is the channel through which leadership reaches sustainability outcomes in a rule-bound public organization. Interventions should therefore target what employees notice and understand before targeting what they are told to do.
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