Pathway toward environmental sustainability: mediating role of corporate social responsibility in green human resource management practices in small and medium enterprises

Abstract

PurposeRecent research validates an increasing knowledge of environmental concerns in manufacturing small and medium enterprises (SMEs). However, only a few studies maintain that green human resource management (HRM) practices and corporate social responsibility (CSR) play an important role, especially in the case of developing economies. Thus, this study aims to examine the direct and indirect relationship between green HRM practices and environmental sustainability (ES) through the mediation of CSR in SMEs in Pakistan.Design/methodology/approachThe cross-sectional design of this study considers the mechanism by which green HRM practices affect ES through CSR in the context of Pakistani SMEs. The authors collected data from 320 manufacturing SMEs and used the partial least squares structural equation modelling (PLS-SEM) technique to examine the relationship between variables.FindingsThe empirical findings of this study suggest green HRM practices have a positive and significant impact on ES. Further, the second hypothesis is not supported. In addition to the direct impact, the indirect effect of green HRM practices on CSR is positive and significant. Finally, the authors determine that green HRM practices affect ES through the partial mediation of CSR.Originality/valueTo date, this study is the first to use CSR as a mediator between green HRM practices and ES in the context of Pakistani SMEs. The study has important implications for HRM and government policy makers, suggesting they should improve strategies in favour of the green economy. Furthermore, developing countries could design similar studies with different future sustainability factors.