GREEN HRM: THE STRATEGIC PATH TOWARDS SUSTAINABLE BUSINESS AND RESPONSIBLE EMPLOYEES

Abstract

Small and medium enterprises in Pakistan gradually face environmental pressures and sustainability challenges that demand effective integration of eco-friendly practices within their operations. However, role of green human resource management in driving sustainable business practices and fostering responsible employee behavior in SMEs remains underexplored. This study investigates the impact of Green HRM practices on sustainable business performance, accenting mediating effect of responsible employee behavior in the SME context of Pakistan. Data were collected through a structured questionnaire administered to 350 employees across the various Pakistani SMEs. The structural equation modeling was employed to assess relationships amid green HRM, employee responsibility and sustainability outcomes. The results demonstrated that green HRM practices significantly enhance employee environmental responsibility, which in turn positively influences sustainable business performance. These findings provide strong empirical support for adopting Green HRM as a strategic tool in Pakistani SMEs to promote environmental stewardship and sustainable growth. The study offers valued theoretical contributions to sustainable HRM literature for the SME managers aiming to align HR policies with the environmental sustainability imperatives.