Sustainable Human Resource Management in theory and practice

Abstract

The concept of sustainability – understood as a company’s ability to achieve its business goals and to increase long-term shareholder value by integrating economic, environmental and social opportunities into its business strategies – seems vital for companies operating worldwide. Additionally, human resources are acknowledged to be among the most valuable assets for them. The purpose of the study is to examine the important factors associated with the organizations’ move towards greater sustainability and the role human resources are and might be playing in that process. The paper contributes to the emerging literature linking sustainability to the issues researched in HRM literature. Initially it discusses how the notion of sustainability has emerged and developed in the HRM literature. Then the role of Human Resource Management in the firm’s sustainability function is presented. Nine large, public, multinational companies rated among the world’s best for their handling of environment, governance, social responsibility, stakeholder management, and work environment issues, are analysed. These are the following: Alcoa, Bank of America, BASF, The Coca Cola Company, Eastman Kodak, Intel, Novartis AG, Royal Philips, and Unilever. Finally, areas of HR’s greatest contribution and areas needing more HR contribution are indicated and discussed and suggestions for managerial practices are delivered.