Should we admire an organization’s economic success if it comes at the cost of our planet and human lives? For too long, many organizations have adopted a narrow definition of success and performance. They’ve had a narrow focus on creating value for shareholders, and a blindness to the wider impact of their actions – including on the environment.
Broadening our definition of success to include recognition of the organization’s impact on a wide range of stakeholders gives a much clearer picture of overall success and long-term performance.
One way businesses can meet the challenge of climate change – and attract a workforce to do so – is through environmentally friendly HR policies, otherwise known as green HRM.
Arguably the greatest challenge facing work organizations in the coming decades is climate change. Long-term organizational success will be determined by how companies respond to challenges such as:
The UN also recognizes that businesses have a key role in responding to the challenge of climate change, both in how they conduct their business and in respecting human rights:
“Businesses are also duty-bearers. They must be accountable for their climate impacts and participate responsibly in climate change mitigation and adaptation efforts with full respect for human rights.”
The emergence of green human resource management (green HRM, or GHRM) represents a proactive approach to fulfilling this duty and developing greener organizations. Green HRM recognises the central role of HRM systems and priorities in encouraging environmentally friendly behaviour in employees and leading change in the organization.
For example, HRM systems that reward environmentally friendly practices result in employees putting greater effort into finding ways to manage the organization’s environmental impact. Examples might include:
Green HRM helps to embed green values throughout the workforce.
As if saving the planet wasn't enough, there’s clear evidence of the positive effects of green HRM on the organization itself. A study by Guerci et al. found that companies with a more environmentally friendly reputation are more attractive to potential employees, giving them an advantage in recruiting the best people from a global pool.
This is especially important at a time when many companies are struggling to attract talent. Many people – especially Millennials – found the COVID-19 pandemic a time to reassess their work priorities. Sustainability credentials are increasingly a ‘must have’ rather than a ‘nice to have’.
HSBC’s 2021 Future of Work Survey revealed that sustainability credentials were seen as important for attracting or retaining talent by nearly a third (27%) of over 2,000 respondents from companies across 10 countries. And the vast majority (96%) saw the workforce as having an important role to play in improving their overall sustainability credentials.
To recruit the right talent to meet the challenges of the climate crisis, offer evidence of your green credentials and commitment to sustainability on your company website and in your job ads.
If green HRM is to be successful, it needs employee participation. Unfortunately, developing this participation isn’t a straightforward process, and there are several barriers that need to be overcome.
Jackson and Seo found that apathy about the importance of environmental responsibility is probably the biggest one – whether that apathy is the result of a lack of belief in the importance of climate change or a sense of helplessness in the face of the climate crisis. Overcoming this requires consistent long-term messaging and evidence of the impacts of changes as well as visible commitment by top management.
As the nations of the world increasingly come together to address the issue of climate change on a global scale, it’s time for work organizations to lead the way into a responsible, sustainable future.
Read more about green HRM and future-proofing our workplaces in Chapter 12 of my book, People, Management and Organizations.
Anna Sutton is the author of People, Management and Organizations and Work Psychology in Action. She is Senior Lecturer in Organisational Psychology at the University of Waikato, New Zealand and was formerly Senior Lecturer in Occupational Psychology at Manchester Metropolitan University, UK.
