ABSTRACT

This chapter looks at how hybrid organisations can implement best practices in environmental, social and governance (ESG). It begins with a historical case study of Cadbury’s model village Bournville, which was built in 1879 near Birmingham, UK, to provide ethical housing and facilities for factory workers. This pioneering example demonstrated emerging ESG principles decades before the acronym was coined. The chapter then looks at how leaders can engage employees in discussions about sustainability today using psychological tools that tap into intrinsic motivation. Patagonia, an outdoor apparel company, provides practical examples of effective strategies such as purpose-driven rituals, volunteer opportunities and internal storytelling. Following that, the chapter discusses fostering diversity, equity and inclusion (DEI) in a thoughtful manner that appeals to shared values rather than imposing rules. It highlights the power of cognitive diversity for innovation and warns against groupthink in hybrid teams. The chapter then explores key psychological factors for sound governance, including trust, perspective-taking and shared mental models. Finally, the author establishes that when framed as a collaborative call to apply ethics for the greater good, comprehensive ESG policies can serve as a unifying force.