An Empirical Study Of The Impact Of Human Resource Management Practices On Environmental, Social And Governance (Esg) Performance

Abstract

The goal of the study is to explore the association between the selected HRM practices and the perceived level of organisational ESG performance in terms of responsible recruitment and selection, sustainability training and development, ESG-based performance appraisal, ESG-based employee participation, and sustainability rewards and recognition. For this purpose, the study suggests employing a quantitative cross-sectional research design with a structured questionnaire as a measurement tool developed on the basis of a five-point Likert scale. Sample size will consist of 150 respondents who are representatives of HRM department as well as employees from manufacturing, IT, banking, and service sector organisations. The descriptive statistics, Cronbach's alpha, Pearson correlation, hierarchical regression, and multiple regression analysis will be applied to synthesised data in order to demonstrate the suggested analytical framework.: Analysis results indicate the existence of the positive associations between several HRM practices and the perceived level of ESG performance. The strongest adjusted associations with ESG performance were revealed for sustainability training and development (β = 0.350) and employee participation (β = 0.339). Then come responsible recruitment (β = 0.261) and sustainability-based rewards and recognition (β = 0.222). Performance appraisal linked to ESG has positive but statistically non-significant association (β = 0.115, p = 0.0625). The hierarchical regression explains 46.7% of variance of ESG performance. The results obtained are only illustrative and have not been empirically validated.