Leveraging ESG-Focused HRM to Drive Transformation and Sustainability in Organizations

Title: Collaborative Solutions: Cross Disciplinary Approaches to Achieve Global Sustainability Goals

Editors: Dr. Gautam Agrawal, and Dr. Swati Singh

ISBN: 978-81-69857-19-2

Chapter: 8

DOI: https://doi.org/10.59646/765/8

Authors: Prabha Arya, Ms. Chandni, Ms. Somiya khatana, Ms.Khushboo Gocher, Ms. Pranavi Sumbria, Mr. DOH Kodjovi Marie-Christian, Mr. Devansh Bajaj, Mr. Garlapati Sai Srinivasa Rao

Abstract

This paper states that integrating Environmental, Social, and Governance (ESG) criteria into Human Resource Management (HRM) elevates the function from a conventional support role to a strategic driver of corporate sustainability and long-term performance. Based on a comprehensive literature review and a novel framework grounded in dynamic capabilities theory, the study identifies five key enablers of this transformation: E-HRM for digital integration, Sustainable Human Resource Development (S-HRD) for capability building, organizational agility, ESG-oriented leadership, and Sustainable Financial Analytics (SFA) for data-driven decision-making. Together, these components enable HRM to cultivate an ethical, adaptable, and high-performing workforce. The findings suggest that ESG-embedded HRM enhances profitability, employee well-being, and organizational reputation. The paper concludes with recommendations for managers and proposes avenues for future research on the intersection of HRM and ESG.

Keywords: Human Resource Management, Customer Satisfaction, Sustainability, ESG Transformation, Social responsibilities