For decades, organizational management has concentrated on achieving short-term financial objectives while overlooking broader long-term goals linked to human issues related to social and environmental concerns. For this reason, sustainability has continued gaining traction in both business and societal contexts. The interest in sustainability is due to increased recognition of human resource (HR) best practices in boosting organizational performance. These include a management strategy designed to realize the optimal needs of organizations and communities of the present without compromising the ability to meet future needs (Aust et al., 2020). Sustainability has become essential for organizations across industries. It incorporates practices that can help boost performance through increased efficiency, cost reduction, and improved public image. For these reasons, this concept attracts the attention of HR since it covers significant areas related to their growth and development. As a HR strategy, sustainability is based on promoting a triple bottom line. These include social equality, economic prosperity, and environmental integrity. The three pillars focus on increasing corporate and social responsibilities (Liang et al., 2022). This literature review examines the role of human resource in promoting sustainable practices and strategies in organizations.
Literature Review
Sustainable HR is vital in promoting social equality, which is integral for organizations to operate efficiently. Based on the tipple bottom line concept, the management process must focus on enhancing employee development and supporting communities (Aust et al., 2020; Simões et al., 2019). As Piwowar‐Sulej (2021) noted, HR managers can be essential in improving the social bottom line by aligning an organization’s practices with the values of the community and the people. Aust et al. (2020) define sustainable HRM as involving long-term conceptual activities aimed at economically appropriate and socially responsible development, deployment, recruitment, selection, and release of workers. A socially responsible HR also has been shown to devise new methods to improve individuals’ and society’s well-being. HR managers can develop procedures that enhance diversity and inclusion or establish ethical and accountable supply chains that contribute to social responsibility initiatives (Daigavane, 2019). Additionally, a series of positive HR practices to enhance sustainability include creating safe working conditions, compensation adjustments, suspension of dismissals, and providing emotional and mental support (Liang et al. 2022). These activities can, in turn, positively influence employee motivation and retention and contribute to improved social welfare.
The Covid-19 outbreak has understandably, exposed employees’ well-being issues and sustainable strategies utilized by organizations. The crisis affected the recruitment process and introduced changes in the work environments as some workers were forced to work from home, and others lost various employment opportunities (Liang et al. 2022). A study conducted by Tušl et al. (2021) shows that from 2118 participants, 28% indicated that they experienced a change in their employment contract, while 27% were negatively impacted by mandatory short-time work, and 1% became unemployed due to the pandemic. In addition, Covid-19 placed unprecedented pressure on some workers leading to high turnover, especially in the health and social work sectors. However, according to Piwowar‐Sulej (2021), socially responsible HR ensures employers guarantee equity in compensation, retention, training, promotion, appraisal, and recruitment. Similarly, sustainable HR needs to provide proper remunerations and non-monetary benefits. It also ensures that organizations offer flexible working hours, improve recognition, and develop employees’ careers, emphasizing it even during a crisis (Piwowar‐Sulej, 2021; Daigavane, 2019). Thus, socially responsible HR considers equality as part of its sustainability goals to improve employee and social well-being.
Economic and profitability efforts are usually every organization’s primary and most important business objectives. Several studies have shown there is a direct correlation between HRM practices, organizations’ performance, and the creation of sustainable competitive advantages (Macke & Genari, 2019; Stahl et al., 2020; Nathaniel et al., 2021). In this regard, it has been suggested that organizations need to create economic value by operating sustainably and HR managers to develop policies and actions focused on long-term survival and corporate success (Macke & Genari, 2019). Although the previous one-dimensional HRM model aims to maximize shareholders’ value and wealth, current sustainable practices call for consideration of the multistakeholder perspective in the management process (Aust et al., 2020; Macke & Genari, 2019). This contention is supported by Piwowar‐Sulej’s study, indicating that HR managers can help organizations pursue economic goals sustainably through performance management, training and development, and recruitment and selection processes (2021). These initiatives are intended to enhance workers’ skills and help HR departments to identify and hire candidates who align with the organization’s values and mission to help it sustainably achieve its economic goals.
HR managers can contribute to economic performance by implementing sustainability practices that reduce costs and increase profits. According to Taha and Taha (2023), green HRM enhances better resource utilization and improves job-related attitudes and efficiencies by assisting organizations in maintaining socially responsible and resource-efficient workplaces. (2022). HR can identify resource-saving measures such as reducing resource intake and implementing recycling programs that reduce expenses and prevent undesirable societal consequences (Mohiuddin et al., 2022; Taha & Taha, 2023). This position is supported by another study which indicates that sustainable strategies and practices adopted by HR can promote the attainment of financial goals while controlling unintended side effects of business operations and negative feedback (Amrutha & Geetha, 2019). Additionally, the need for economic sustainability has increasingly attracted calls for ethical practices (Singh & Gaur, 2020). This has been facilitated by corporate scandals that have contributed to numerous crises. HR managers can help organizations pursue economic goals sustainably by adhering to ethical business practices, including transparent reporting, fair labor practices, fair wages, and responsible sourcing (Sabiu et al., 2019). HRM may review work processes and practices to ensure they align with sustainability goals.
Environmental management is vital in helping organizations pursue economic goals sustainably while avoiding harmful externalities in areas where they operate. The triple bottom line concept is described as a process that connects social and economic dimensions while considering environmental protection and ecological balance (Piwowar‐Sulej, 2021; Taha & Taha, 2023). According to Aust et al. (2020), a sustainable HRM can help facilitate’ ecological awareness and behavior among the workforce and consequently help mitigate organizations’ carbon footprint and add to their green credentials. This position is supported by Simões et al. study, which suggests that green HR managers’ roles include a set of actions, such as providing support to communities, reducing environmental impacts, and investing in employee development (2019). Similarly, best practices adopted by HR managers include recycling activities and supporting community environmental activism (Taha & Taha, 2023). Others include green hiring, training, and compensation, which entails recruiting workers for jobs that involve green tasks and rewarding them based on their environmental goals achievement (Aust et al., 2020; Mashhady, 2021; Macke & Genari, 2019). These strategies can help reduce environmental impact, improve efficiency, and enhance organizations’ reputation as sustainable employers.
HR can contribute to the environmental benefits by developing and implementing sustainability practices that reduce the organizations’ environmental impact. For example, opportunities can be created for employees to engage in volunteerism and community service projects. According to Im and Chung (2018), employee volunteering is a part of the corporate social responsibility program adopted by 90% of Fortune 500 organizations worldwide. The community service undertaken by employees can take many forms, from organizing food drives to participating in charity walks or helping to build houses for people experiencing homelessness (Derecskei & Nagy, 2020; Bustamante et al., 2021). These HR initiatives can help demonstrate commitment to social and environmental sustainability, which helps increase organizations’ visibility and positive reputation. In addition, employees who participate in such activities are also more likely to be engaged and committed to their jobs, which can lead to improved productivity and reduced turnover.
Conclusion
HR managers can be crucial in promoting sustainability efforts by aligning sustainability goals with business objectives and adopting green practices. Based on the triple bottom line approach, the social dimension requires management to focus on enhancing employee development and supporting and improving the well-being of communities. For example, organizations can guarantee parity in retention, compensation, promotion, and recruitment processes. In addition, it is vital to provide proper remunerations and create flexibility, improve working conditions, and develop employees’ careers to enhance the well-being of employees and society. On the other hand, HRM can help realize shareholder interests by creating a healthy and conducive culture that can prevent corporate scandals. In this case, sustainability goals can be achieved by adhering to ethical business practices, such as fair labor practices, transparent reporting, fair wages, and responsible sourcing. Lastly, due to the negative impacts of business activities on the environment, HR must promote environmental awareness among employees to help reduce organizations’ carbon footprint and support community projects to increase sustainability. Through these HR strategies, the optimal needs of organizations and communities can be realized without compromising the ability to meet future needs.
References
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