Effects of Executive Sustainability Compensation on Employee Pro-Environmental Behavior

Last registered on February 25, 2025
View Trial History

Pre-Trial

Trial Information

General Information

Title
Effects of Executive Sustainability Compensation on Employee Pro-Environmental Behavior
RCT ID
AEARCTR-0015297
Initial registration date
February 19, 2025

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
February 25, 2025, 9:29 AM EST

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country
Germany
Region

Primary Investigator

Name
Natalie Rupp
Affiliation
Ulm University
Contact Primary Investigator

Other Primary Investigator(s)

Additional Trial Information

Status
In development
Start date
2025-02-20
End date
2025-03-31
Keywords
Behavior, Environment & Energy, Firms & Productivity
Additional Keywords
Sustainability, Employee Behavior, Implicit Incentives, Executive Compensation
JEL code(s)
M1, M5
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
In the face of climate change, biodiversity loss and general environmental degradation, corporate social responsibility (CSR) is becoming increasingly important. To align corporate strategies with sustainability and reduce the associated carbon footprint, a recent trend has been to link executive compensation to the achievement of specific sustainability goals. However, little is known about how this may affect non-executive employees. On the one hand, employees may be more motivated to contribute to the achievement of sustainability targets by increasing their pro-environmental behavior in their daily work. On the other hand, it could even be detrimental to employees' behavior, causing them to feel inequitable. However, this effect could be mitigated by a "tone from the top" approach, in which the behavior of executives demonstrates the importance of sustainability by setting a good example. Using an experimental approach, this study seeks to advance understanding of the potential behavioral spillover effects of sustainability interventions on seemingly unaffected other groups, a phenomenon yet understudied in the literature.
External Link(s)

Registration Citation

Citation
Rupp, Natalie. 2025. "Effects of Executive Sustainability Compensation on Employee Pro-Environmental Behavior." AEA RCT Registry. February 25. https://doi.org/10.1257/rct.15297-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
Intervention (Hidden)
Intervention Start Date
2025-02-20
Intervention End Date
2025-02-28

Primary Outcomes

Primary Outcomes (end points)
Employee Pro-Environmental Behavior
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
The online experiment follows a full factorial 2 x 2 design. Participants are immersed in the role of employees. They will be randomly assigned to one of four experimental groups, each of which will be exposed to different conditions formulated by two independent variables:
- Executive Sustainability Compensation Information (Present vs. Absent)
- Executive Sustainability Behavior Information (Present vs. Absent)

The control group receives neither Executive Sustainability Compensation Information nor Executive Sustainability Behavior Information. The first treatment group obtains Executive Sustainability Compensation Information only. The second treatment group is exposed to Executive Sustainability Behavior Information. The third experimental group is provided with both Executive Sustainability Compensation Information and Executive Sustainability Behavior Information.
Experimental Design Details
First, participants are informed about the company and, depending on their experimental group, receive additional information about the company's executive sustainability compensation and/or the sustainable behavior of its executives.

Next, participants are informed of their task. In each experimental group, participants must choose a logistics partner to handle the company's deliveries for the next year. All options are presented, with per-unit prices, per-unit carbon emissions, and each logistics partner's estimated delivery accuracy serving as a quality metric.

Finally, participants complete a post-experiment questionnaire to gather relevant information about their decision-making process, environmental attitudes, perceptions of justice, fairness and reciprocity, and organizational commitment.
Randomization Method
Participants are randomly assigned to four experimental groups (one control and three treatment groups) using a feature of SoSci Survey (software for online questionnaires).
Randomization Unit
Randomization is performed at participant level.
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
No clusters.
Sample size: planned number of observations
The sample size is calculated based on the results of the pretest using G-Power Analysis.
Sample size (or number of clusters) by treatment arms
The sample size is calculated based on the results of the pretest using G-Power Analysis.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
IRB Approval Date
IRB Approval Number
Analysis Plan

Post-Trial

Post Trial Information

Study Withdrawal

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Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials