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The IUP Journal of Organizational Behavior

Impact of Green HRM Practices on Environmental CSR of Indian Banks: A Comparative Analysis of a Public and Private Bank

Article Details

Pub. Date	: October, 2023
Product Name	: The IUP Journal of Organizational Behavior
Product Type	: Article
Product Code	: IJOB100223
Author Name	: Sarthak Mishra and Namita Rath
Availability	: YES
Subject/Domain	: Arts & Humanities
Download Format	: PDF Format
No. of Pages	: 25

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Abstract

Considering the current global concerns over environmental degradation, environmental corporate social responsibility (CSR) and green human resource management (GHRM) practices need additional attention from all organizations, including the banking sector which plays a vital role in a nation's development process. The present study focuses on environmental CSR in two leading Indian banks, namely, State Bank of India (SBI) and HDFC Bank. An analysis of available CSR data for six years from FY2016-17 to FY2021-22 reveals that in both the banks, CSR spending on environment-related activities was significantly lower as compared to other CSR activities. The study provides theoretical insights on GHRM practices as strategic resource with attributes of resource-based view (RBV) Theory, to achieve sustained competitive advantage and better environmental CSR. Strategic implementation measures to improve environmental CSR have also been highlighted. An empirical study of both the banks regarding the effect of GHRM practices on improving environmental CSR has been carried out. The data analysis, using the Smart PLS4, shows that GHRM practices have a significant effect on environmental CSR through the mediating support of organizational citizenship behavior for environment (OCBE).

Introduction

In view of the worsening trend of environmental degradation, the United Nations Industrial Development Organization (UNIDO) has added an environment angle to the concept of corporate social responsibility (CSR) and expects companies to integrate social and environmental concerns in their business operations. This will ensure achieving balance of economic, environmental and social imperatives, i.e., Profit, Planet and People, the Triple Bottom Line approach as mentioned in the Handbook on Corporate Social Responsibility in India. The traditional approach of achieving economic goals alone is no longer compatible with society's changing demands for a more sustainable approach encompassing reduced impact on the environment (Freitas et al., 2020). In India, the evolution of CSR transformed from pure philanthropy and charity during 1850-1914 to social development during 1914-1960 (Mitra and Schmidpeter, 2017). There has been a significant transition of CSR from a voluntary welfare activity to a mandatory requirement for certain class of companies in the Companies Act, 2013, which will bring about a positive social change not only in India but in other emerging economies globally. Environment and Sustainable Development received particular focus after the United Nations initiated millennium development goals (MDGs) in 2000 and sustainable development goals (SDGs) in 2015, which made CSR a strategic necessity for organizations.