Situational Leadership of Entrepreneurs Influencing ESG and Safety Management: Employee Perspectives in the Health, Beauty, and Supplement Manufacturing Sector

This research aims to 1) examine the influence of entrepreneurs’ situational leadership on ESG (Environmental, Social, and Governance) performance, 2) assess employees’ perceptions of safety management practices within the health, beauty, and supplement manufacturing sector, and 3) analyze the relationship between situational leadership, ESG driving, and workplace safety outcomes. A mixed-methods approach was employed. Quantitative data were collected through questionnaires administered to 150 employees, selected using the Taro Yamane formula with a 0.05 error level through accidental sampling. Data were analyzed by descriptive statistics percentage, mean, and standard deviation—and inferential statistics, including t-test and F-test to examine differences among employee groups. The qualitative phase involved semi-structured interviews with business owners and key operational managers, and the data were analyzed using content analysis. The findings revealed that situational leadership had a statistically significant positive influence on both ESG implementation and safety management performance. Employees perceived that adaptive leadership behaviors particularly directing and supporting styles enhanced clarity, compliance, and participation in ESG-related activities. Interview themes further indicated that leaders who adjusted their leadership style based on employee readiness facilitated safer work environments, encouraged environmental awareness, and strengthened organizational governance. Practical implications suggest that entrepreneurs should adopt flexible leadership styles to enhance ESG outcomes and integrate employee-centered safety strategies into organizational policy.