The Link Between Sustainability Reporting and the Core Characteristics of Sustainable Human Resource Management

Abstract

Abstract Background The concept of sustainable human resource management is becoming a core subject of sustainability reports. Current discussions in the literature focus on how to integrate human resource management (HRM) with sustainability issues and emphasise the concept of “sustainable human resource management” rather than “sustainability and human resource management.” This focus requires a more comprehensive company perspective through the lens of company goals, people, processes and the strategic orientation dimensions of an HRM–sustainability relationship. Within this perspective, new approaches are needed to concentrate on sustainable HRM issues. Research aims The aim of this study is to analyse the contents of the sustainability reports in terms of sustainable HR characteristics and HR orientation dimensions. The content analysis design is based on an integrated approach of the classification of sustainable HR characteristics through HR orientation dimensions. The sustainability reports of seven financial institutions from the Borsa Istanbul Sustainability Index (BIST) are analysed for the year 2019 in order to determine to which degree sustainable HR is actively involved in the sustainability reports. Methodology In this study, an in-depth content analysis is performed on corporate sustainability reports of selected companies in order to form the link between HR orientation and sustainability. This content analysis stands on the integration of two different approaches drawn from the literature (Ehnert, 2014; Ulrich, 1997). Findings The results revealed that there are significant differences between the people-oriented scores and process-oriented scores in private banks, while the scores are more balanced in public banks. Additionally, findings support the shift in the public sector from the traditional bureaucratic model to a new management approach that transfers private sector management techniques to the public sector.