1.Sustainable Human Resource Management (SUSTAINABLE HRM)

Overview - SUSTAINABLE HRM

Sustainable human resource management shows the HR practices and that engaging long-term economic, social, and environmental sustainability while ensuring people's being ethical practices and business success. (Ehnert et al, 2016).

 This is a strategic approach to managing human resources in organizations that focuses on increasing long-term economic growth, social equity, and environmental sustainability. Sustainable HRM is based on the understanding that organizations have a responsibility to not only maximize economic profit margins and productivity but also to consider the well-being of employees, society, and the planet. This approach highlights the importance of fair and equitable treatment, employee engagement, work-life balance, and opportunities for learning and growth.  (Pathirana, 2024).

Practicing sustainable HRM in an organization (such as recruitment, development, and regeneration) can positively impact employees, the environment, and stakeholders while ensuring long-term success and demonstrating resilience in the changing business landscape (Mariappan Adar, 2003).

 The key pillars of the sustainable HMR are employee well-being, social responsibility, and environmental safety. This principle aligns the organization's HRM practices with sustainable development goals and balancing the needs of people, planet, and profit.

Economic sustainability

 Mainly focuses on employee training, career development, productivity enhancement, and long-term talent retention. Further implementing fair compensation and retaining talents (Barney 1991).

 Social sustainability

Secure employee well-being and work-life balance by using ethical labor practices and human rights and also promoting diversity and equity. (Kramar, 2014; Renwick et al, 2013; Ehnert et al, 2016).

Environmental sustainability

Under this pillar, promote remote working and flexible working hours, reduce the carbon footprint, and create a sustainable workplace. Also, minimize the papers, motivate the renewable energy sources and make sure the eco-friendly workplace (Renwick et al, 2013)

Theories of Sustainable human recourse management

Triple Bottom Line (TBL) Theory

The triple bottom line theory, called TBL, was invented by John Elkington in 1994. It shows that business success should be measured not only by financial profit but also by the social and environmental impact of an organization. TBL promotes a balanced approach focusing on three key factors: People, Planet, and Profit. In the context of sustainable human resource management, this theory encourages organizations to implement employee well-being, environmental responsibility, and long-term business growth (Elkington, 1997).

Stakeholder Theory

 This theory, developed by Edward Freeman in 1984, promotes that businesses should consider the interests and well-being of all stakeholders, such as employees, customers, suppliers, the local community, and the environment. Therefore, this theory supports SHRM by encouraging organizations to ethically engage with employees, promote work-life balance, and ensure fair treatment as part of individuals' responsibility toward key stakeholders. By aligning human resource practices with stakeholder needs, companies can build stronger relationships and sustainable growth (Freeman, 1984).

Human Capital Theory

Introduced by Gary Becker in 1964, promoting employees as a main factor of capital that contributes to organizational performance. The theory highlighted that investment in education, training, and health leads to improved employee productivity, efficiency, and economic returns. In sustainable HRM, this translates into offering learning and development opportunities, supporting well-being, and creating environments that help employees grow. These practices ensure the long-term sustainability of both the workforce and the organization (Becker, 1964)

Institutional Theory

Institutional theory explains that organizations are influenced by outside pressures, like government rules, industry standards, and society expectations. Many companies follow sustainable HRM practices not just by choice but because they want to meet these expectations and be accepted. it means that organizations are treating the employees fairly, offering equal pay, and following labor laws often comes from the need to follow outside rules. These practices help businesses build a good reputation and run in a more responsible way.(DiMaggio and Powell, 1983)

References

Ehnert, I., Parsa, S., Roper, I., Wagner, M. & Muller-Camen, M. (2016) Reporting on sustainability and HRM: A comparative study of sustainability reporting practices by the world's largest companies. The International Journal of Human Resource Management,27(1),pp.88-108.

Pathirana, J. (2024) Sustainable Human Resource Management: Concept and Practices for Long -Term Valuve.Colombo: University of Sri Jayewardenepura.

Elkington, J. (1997) Cannibals with Forks: The Triple Bottom Line of 21st Century Business. Oxford: Captone Publishing.

Freeman, R.E. (1984) Strategic Management: A Stakeholder Approach.Boston: Pitman.

Becker, G.S. (1964) Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education. New York: Columbia University Press

DiMaggio, P.J. and Powell, W.W. (1983) The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields.  American Sociological Review,48(2),  pp.147-160

Barney, J.B. (1991) Firm resources and sustained competitive advantage. Journal of Management, 17(1), pp.99-120

Kramar, R. (2014) Beyond strategic human resource management: Is sustainable human resource management the next approach? The International Journal of Human Resource Management,25(8), pp. 1069-1089.

Renwick, D.W.S., Redman, T. and Maguire, S.(2013) Green human resource management: A review and research agenda. International Journal of Management Reviews, 15(10), pp.1-14.