Conceptualizing the Impact of Green HRM Practices on Organizational Investment Decisions: Theoretical Insights into the Mediating Role of Employee Green Behavior

Abstract

In contemporary scholarly discussions, the integration of environmentally focused human resource management (Green HRM) and organizational investment choices surface as a critical field of study. It emphasizes a paradigm where organizational goals and environmental conservation intertwine. However, the understanding of the impact of green HRM within organizational investment is still evolving, requiring deeper insights into how sustainable HR strategies can reshape organizational investment landscapes. This study traverses the rich interface of organizational behavior and environmental awareness to unravel how green HR strategies are linked to organizational investment decisions. Through meticulous literature review following the methods by Smith and Lewis (2016), the synthesis of ecological responsibility, employee conduct, and institutional investment philosophies is explored, aiming to identify the relationship between green HR initiatives and strategic financial choices of organizations. Organizational investment decisions are crucial in business strategy, reflecting the strategic allocation of resources for long-term sustainability, intertwining with the organizational approach towards environmental stewardship. The study delves into how employee green behavior acts as potential intermediary, transforming green HRM practices into environmentally conscious investment choices. The review unveils the importance of cultivating an environment to encourage employee’s environmentally friendly behaviors, acting as a link between eco-HRM and sustainable financial choices. This includes exploration into how individual ecological predispositions translate into collective eco-friendly actions within organizations, subsequently influencing investment strategies. A proposed conceptual model explores the relationship between green HRM practices, employee green behavior, and organizational investment decisions. It is hypothesized that organizations implementing robust green HRM practices are likely to make investment decisions favoring environmental conservation and sustainability. Furthermore, employee green behavior may serve as a pivotal mediating factor, translating eco-friendly human resource strategies into sustainable investment choices. This exploration assumes heightened significance in an era where environmental concerns have assumed paramount importance. It offers profound insights that resonate not only within the realms of future research but also in practical applications embedded within organizational strategies and operations. The ultimate aim is to orchestrate a harmonious alignment between organizational investments and the overarching goals of environmental sustainability.