The Effect of Green Human Resource Management and Corporate Social Responsibility on Sustainability Performance in Indonesia: The Mediation Role of Organizational Citizenship Behavior towards the Environment

Abstract

The widespread trend of global industrialization in Indonesia has resulted in the depletion of natural resources and environmental destruction. Indonesia has been undergoing recent changes in accordance with the 2030 agenda to potentially achieve the Sustainable Development Goals and reduce carbon footprint. The pivotal role of an organization’s Human Resource (HR) Department in cultivating sustainability in numerous sectors has yet to be investigated in emerging economies such as Indonesia. The current study aimed to explore the mediating role of Organizational Citizenship Behavior towards the Environment (OCBE) in the relationship between Green Human Resources Management (GHRM), Corporate Social Responsibility (CSR), and Sustainable Performance (economic, social, and environmental performance). This study also contributes to the ability motivation opportunity theory. A quantitative questionnaire research design was employed, and structured questionnaires divided into four sections were utilized to gather data. The sample of this study comprised individuals residing in Indonesia, aged between 20 and 43, with work experience at a managerial level. Smart partial least squares structural equation modeling (PLS-SEM) was employed for data analysis. The results demonstrated that the instrument was both reliable and valid, meeting all standard criteria for average variance extracted, composite/construct reliability, factor loadings, and alpha values. The structural models indicated that all hypotheses, with the exception of Corporate Social Responsibility (CSR) positively affecting Sustainable Performance, were supported. Consequently, it was concluded that Organizational Citizenship Behavior towards the Environment (OCBE) significantly mediated the relationship between Corporate Social Responsibility (CSR) and Green Human Resource Management (GHRM) practices. The novelty of this study is emphasized by its focus on leveraging corporate social responsibility and green human resources management practices to improve sustainable performance in Indonesia by fostering organizational citizenship behavior towards the environment.