Green Human Resource Management practices: An Exploratory Study on Implementation and Stakeholder Influence

Abstract

Human activities have left a profound impact on the environment, leading to resource depletion and pollution, which in turn have aggravated environmental problems. With the escalating concerns surrounding climate change, global warming, and mounting pressures from various stakeholders, sustainability has emerged as a focal point for organisations. In response to this mounting pressure, companies have begun adopting green practices, among which Green Human Resource Management (GHRM) practices. Despite the significance of GHRM practices, empirical research in this relatively new field remains limited. Consequently, this master’s thesis aims to address the lack of research in this specific context by investigating on whether companies implement these practices and identifying potential obstacles that prevent them from doing so. Additionally, the study will emphasise the importance of stakeholders in driving the adoption of GHRM practices, helping organisations respond effectively to their stakeholders' greening pressures. The literature review delved into a comprehensive analysis of GHRM, unravelling its multifaceted dimensions. The review covered various GHRM practices, including green analysis and job description, green recruitment and selection, green training and development, green performance management and appraisal, and green rewards and compensations. In addition, the literature review focused on the stakeholder theory, also incorporating insights from the institutional theory to explore the connection between stakeholders and sustainability. It explained how stakeholder pressures can drive companies to adopt green practices, particularly GHRM practices. The empirical part of the thesis focuses on semi-structured interviews with HR manager or other relevant participants of Belgian companies. The implementation of GHRM practices varies for different companies, depending on their current situation, which is heavily influenced by economic conditions and recruitment challenges. Additionally, company culture plays a significant role in deciding whether certain practices should be adopted, as they must align with the company's values and culture. While sustainability is gaining importance, not all companies prioritise it enough to invest time and resources in adapting their structures accordingly. Furthermore, the specific sector and line of business of a company can also impact the feasibility of certain GHRM practices. The research also shed light on the influence of stakeholders on the implementation of GHRM practices. Employees and prospective workers were found to play a significant role in driving companies to adopt greener HRM practices, particularly the younger generation, who prioritise sustainability in their work environment. Management, shareholders, and owners also played a critical role in fostering a culture of environmental consciousness within organisations. Financial institutions, public investors, governments, regulatory bodies, and clients exerted indirect pressure on companies to adopt GHRM practices through financial regulations, sustainability considerations, and demands for sustainable practices. In conclusion, this master thesis provides valuable insights into the adoption of GHRM practices and how they are influenced by stakeholders. The research emphasises the necessity for companies to genuinely commit to sustainability and customise their sustainability initiatives based on their unique circumstances. As organisations increasingly prioritise sustainability due to stakeholder pressures, the effective implementation of GHRM practices can contribute to environmental protection and generate positive impacts. The hope is that these research insights will guide HR professionals in adopting green HRM strategies and contribute to global efforts in addressing environmental issues.