In the face of mounting environmental challenges and heightened awareness surrounding sustainability, organizations are increasingly pressured to incorporate sustainable practices into their operations. Sustainability has evolved from being a peripheral concern to a core component of corporate strategy. Consequently, Human Resource Management (HRM) plays a pivotal role in fostering environmentally responsible behaviors among employees, thereby contributing to an organization’s sustainability objectives.

Green Human Resource Management (GHRM) refers to HR policies and practices specifically designed to promote environmental management within organizations (Gomes et al. 2024). These practices, including green recruitment and selection, environmental training, green performance appraisal, and eco-based rewards, encourage employees to adopt eco-friendly behaviors, ultimately supporting organizational sustainability (Renwick et al., 2013; Jabbour et al., 2021). The Ability-Motivation-Opportunity (AMO) Theory provides a valuable framework for understanding how GHRM practices influence employee behavior.

The AMO theory posits that employee performance is enhanced when organizations focus on three key components: Ability, which refers to enhancing employees' skills; Motivation, which involves incentivizing desirable behaviors; and Opportunity, which provides employees with chances for engagement in sustainability initiatives (Appelbaum et al., 2000). In the context of GHRM, these three components are integrated through practices that equip employees with environmental skills (Ability), motivate them through rewards and recognition (Motivation), and involve them in sustainability initiatives (Dumont et al., 2017).

Green Recruitment and Selection (GRS) is one of the primary GHRM components, aiming to attract employees who align with the organization’s sustainability values. By embedding environmental considerations into recruitment processes, organizations can ensure new hires possess both the competencies and mindset needed for environmental stewardship (Jabbour et al., 2021). Similarly, Green Training and Development (GTD) equips employees with the necessary skills to adopt eco-friendly behaviors, while Green Performance Management (GPM) integrates environmental goals into performance evaluations, reinforcing eco-friendly behaviors. Lastly, Green Compensation and Reward(GCR) sets the tone for sustainability throughout the organization by demonstrating a commitment to environmental goals at all levels. This study explores the impact of GHRM practices, including Green Recruitment and Selection, Green Training and Development, Green Performance Management, and Green Corporate Responsibility, on Employee Eco-Behavior (EFB), and their subsequent effects on Organizational Resilience (ORS) and Organizational Sustainability (ORS). By investigating these relationships, this research seeks to contribute to a deeper understanding of how GHRM practices foster a sustainable organizational culture and enhance overall environmental performance. While the growing focus on sustainability has prompted many organizations to adopt green initiatives, the integration of sustainable practices across all organizational levels remains a challenge. Green management practices, particularly those within HRM, are widely recognized as key drivers for fostering environmentally responsible behaviors (Jabbour et al., 2021). However, the extent to which these practices influence employee behavior and contribute to organizational outcomes like resilience and sustainability remains underexplored. Despite the increasing implementation of GHRM practices such as Green Recruitment and Selection, Green Training and Development, and Green Performance Management, limited empirical research exists on their direct impact on Employee Eco-Behavior (EFB) and their broader contribution to Organizational Resilience (ORS) and Organizational Sustainability (ORS). Additionally, the relationship between these practices and the overall success of sustainability initiatives remains unclear, highlighting a significant gap in the literature regarding how organizations can leverage GHRM practices to achieve long-term sustainability. How do GHRM practices influence Employee Eco-Behavior, and contribute to Organizational Sustainability, enhancing long-term performance?

Recent studies have increasingly emphasized the role of GHRM in promoting environmental responsibility among employees. For instance, Dumont et al. (2017) found that the alignment of employee values with organizational sustainability goals through green recruitment practices leads to greater employee engagement in environmental initiatives. Additionally, research by Jabbour et al. (2021) demonstrated that green training programs significantly enhance employees' environmental awareness and competence, fostering behaviors that contribute to sustainability. Furthermore, GPM has been shown to increase employees' accountability for sustainable practices by embedding green goals into performance management systems, thus enhancing overall organizational performance (Jackson et al., 2014). Despite these promising findings, research exploring the combined effects of GHRM practices on both employee behavior and organizational outcomes, particularly in terms and sustainability, remains limited.

This study aims to explore how GHRM practices influence employee green behavior and their contributions to organizational sustainability. The specific objectives of the study include examining the impact of Green Recruitment and Selection (GRS) on Employee Eco-Behavior (EFB), investigating the role of Green Training and Development (GTD) in promoting Employee Eco-Behavior (EFB), assessing how Green Performance Management (GPM) influences Employee Eco-Behavior (EFB). By addressing these objectives, the study seeks to provide new insights into how GHRM practices can contribute to fostering a sustainable work culture and improving environmental performance within organizations.

Literature Review and Hypothesis Development

GHRM encompasses HR policies and practices designed to promote environmental management. These include green recruitment and selection, environmental training, green performance appraisal, and eco-based rewards (Renwick et al., 2013). The Ability-Motivation- Opportunity (AMO) theory suggests that organizations can foster desirable behaviors by enhancing employees’ abilities, motivating them, and providing opportunities for engagement (Appelbaum et al., 2000). GHRM aligns with AMO theory by equipping employees with environmental skills (Ability), incentivizing eco-friendly behavior (Motivation), and involving them in sustainability initiatives (Opportunity). Green Recruitment and Selection (GRS) involves integrating environmental considerations into hiring processes to attract candidates whose values align with the organization’s sustainability goals. By including sustainability-related requirements in job descriptions, using environmental criteria in interviews, and assessing candidates’ prior eco-friendly initiatives, organizations can ensure that new hires possess both the competencies and the mindset needed for environmental stewardship (Renwick et al., 2013). The Person–Organization (P–O) Fit Theory suggests that when an employee’s values align with those of the organization, they are more committed, satisfied, and likely to demonstrate behaviors that support organizational objectives.

Recruiting individuals with strong pro-environmental values ensures a natural alignment between personal and organizational priorities, thereby fostering Employee Eco-Behavior—actions such as reducing waste, conserving energy, and supporting green initiatives. In addition, Signaling Theory explains how recruitment messages communicate organizational values to potential applicants. By emphasizing sustainability in recruitment materials, organizations send a strong signal that environmental responsibility is a core priority, attracting like-minded candidates while discouraging those indifferent to such values. This targeted approach helps build a workforce inherently motivated to engage in eco-friendly practices. Research supports this link; studies show that employees recruited under green criteria are more likely to demonstrate consistent eco- friendly behaviors, not only because of their personal values but also due to the clear expectations set during the hiring process. This strategic alignment enables organizations to establish a sustainable work culture from the outset, ensuring that environmental values are embedded in daily operations. Thus, incorporating environmental considerations into recruitment and selection serves as a foundational step toward cultivating a green workforce, ultimately enhancing the prevalence of Employee Eco-Behavior across the organization.

H1: Green Recruitment and Selection has a positive effect on Employee Eco-Behavior Rationale Green training equips employees with the essential knowledge, skills, and motivation needed to carry out environmentally responsible tasks effectively (Jabbour, 2011). It involves structured learning initiatives such as workshops, seminars, and simulations that focus on key areas like energy conservation, waste reduction, and sustainable resource management. By increasing employees’ environmental awareness and technical competence, such training ensures they can incorporate eco-friendly behaviors into their daily work activities. The Social Learning Theory (Bandura, 1977) supports this relationship by highlighting that individuals acquire behaviors by observing and imitating others, especially when modeled by credible figures within the organization. Through green training, employees not only gain practical skills but also observe peers and leaders engaging in sustainable practices, reinforcing their own eco-friendly actions. Moreover, ongoing development opportunities contribute to cultivating a long-term culture of sustainability. Continuous learning—through refresher courses, updated sustainability guidelines, or collaborative problem-solving sessions—keeps environmental goals relevant and top-of-mind. This fosters a sense of empowerment among employees, encouraging them to innovate and find new ways to improve environmental performance. Green training also aligns with the Ability– Motivation–Opportunity (AMO) Theory, where training enhances the ability component by equipping employees with the expertise required for sustainable behavior. When combined with motivational incentives and opportunities for participation, the impact of training on eco- behavior becomes even stronger. Ultimately, organizations that invest in comprehensive green training and development create a workforce that is both capable and committed to environmental stewardship, thereby increasing the prevalence and quality of Employee Eco- Behavior across the workplace.

H2: Green Training and Development has a positive effect on Employee Eco-Behavior

Performance management systems that integrate environmental objectives communicate to employees that sustainability is a central organizational priority (Daily & Huang, 2001). By embedding green performance indicators—such as waste reduction, energy efficiency, or sustainable resource utilization—into appraisal systems, organizations establish clear and measurable expectations for employee behavior. This ensures that environmental performance is not treated as optional but as a formal and accountable aspect of job performance. The Goal- Setting Theory (Locke & Latham, 1990) explains that specific, challenging, and measurable goals increase employee motivation and improve performance outcomes. When employees are evaluated against well-defined environmental targets, they are more likely to align their behaviors with these goals. This alignment reinforces eco-friendly actions as part of daily routines, making sustainability an embedded organizational norm rather than a peripheral activity. Moreover, incorporating green objectives into performance reviews strengthens accountability. Employees understand that their contributions to environmental initiatives are monitored, recognized, and potentially rewarded, which increases commitment to eco-behavior. In addition, the feedback provided during performance evaluations offers opportunities for continuous improvement, enabling employees to refine their sustainable practices over time. From a cultural perspective, green performance management signals that environmental responsibility is valued at all organizational levels. This not only motivates employees to comply but also fosters a sense of pride and ownership in contributing to sustainability. Over time, such practices help develop a workforce that consistently engages in behaviors that support the organization’s long-term environmental goals. Therefore, by embedding sustainability into performance management, organizations can ensure that Employee Eco-Behavior becomes a consistent and measurable outcome, directly contributing to corporate sustainability objectives.

H3: Green Performance Management has a positive effect on Employee Eco-Behavior Compensation and reward systems that recognize and reinforce environmental performance serve as powerful motivators for employees to adopt and sustain eco-friendly practices (Paillé et al., 2014). By linking tangible and intangible rewards to environmental achievements, organizations create a direct incentive for employees to engage in behaviors that contribute to sustainability goals. The Expectancy Theory (Vroom, 1964) provides a strong theoretical basis for this relationship, suggesting that employees are more likely to perform certain behaviors when they believe those behaviors will lead to outcomes they value. When organizations explicitly connect green performance such as reducing waste, improving energy efficiency, or initiating sustainable projects to rewards like bonuses, promotions, or formal recognition, employees perceive a clear link between effort and reward. This perception increases their motivation to engage in environmentally responsible actions.

These rewards can be financial, such as cash bonuses or salary increments tied to environmental targets, or non-financial, such as public acknowledgment, certificates of appreciation, extra leave days, or eco-friendly perks (e.g., bicycle subsidies, reusable product vouchers). Non- financial recognition can be particularly effective in enhancing intrinsic motivation, as it fosters a sense of pride and personal fulfillment from contributing to sustainability. Moreover, green rewards signal that environmental performance is not just symbolic but strategically important to the organization. This signaling reinforces the organization’s green culture and encourages sustained eco-behavior over time. When combined with other Green Human Resource Management (GHRM) practices such as training and performance management—compensation and rewards help create a comprehensive system that promotes, measures, and sustains pro- environmental actions. In this way, green compensation and rewards not only motivate short- term compliance but also embed environmental responsibility into the long-term behavior patterns of employees, strengthening the organization’s overall sustainability performance.

H4: Green Compensation and Rewards has a positive effect on Employee Eco-Behavior Green Employee Involvement refers to actively engaging employees in environmental decision- making, problem-solving, and sustainability initiatives at the workplace. This practice fosters a sense of ownership, accountability, and shared responsibility toward achieving the organization’s environmental goals (Fernández et al., 2003). When employees are given the opportunity to participate in sustainability-related discussions, propose solutions, and take leadership roles in green projects, they feel valued and empowered, which increases their commitment to eco-friendly behaviors. The Self-Determination Theory (Deci & Ryan, 1985) provides a strong theoretical foundation for this relationship, emphasizing that autonomy and participation enhance intrinsic motivation. Employees who perceive that they have the freedom to contribute meaningfully to environmental initiatives are more likely to adopt sustainable practices, not merely because they are required to, but because they genuinely want to. This internalized motivation ensures that eco-behavior becomes consistent and self-sustaining over time.

Practical examples of green involvement include forming cross-functional green committees, organizing brainstorming sessions for waste reduction strategies, and empowering employees to lead awareness campaigns. Such activities enhance environmental knowledge, foster collaboration, and encourage creativity in finding sustainable solutions. Moreover, involving employees in decision-making ensures that environmental policies are more realistic and effectively implemented, as they reflect the practical insights of those who will carry them out. This participatory approach also contributes to building a green organizational culture, where environmental responsibility becomes a shared value rather than a top-down directive. Over time, collective involvement leads to social reinforcement of eco-behaviors, making them a natural part of daily work routines. In summary, by involving employees directly in environmental efforts, organizations can significantly strengthen Employee Eco-Behavior, creating a motivated workforce that actively contributes to long-term sustainability objectives.

H5: Green Employee Involvement has a positive effect on Employee Eco-Behavior Organizational sustainability refers to an organization’s ability to operate in a manner that balances economic performance with environmental stewardship and social responsibility, ensuring long-term viability and minimal negative impact on natural resources (Elkington, 1997). Employees play a crucial role in driving these sustainability outcomes through their daily behaviors and decisions at work. Employee Eco-Friendly Behavior encompasses individual actions such as reducing waste, conserving energy, recycling, and supporting green initiatives within the organization. These behaviors contribute directly to minimizing environmental footprints by reducing resource consumption, lowering emissions, and promoting efficient use of materials (Robertson & Barling, 2013). When employees consistently engage in eco-friendly practices, the cumulative effect leads to measurable improvements in organizational sustainability performance. From a resource-based view (RBV) perspective (Barney, 1991), employees’ green behaviors represent valuable, rare, and inimitable resources that enhance the organization’s capability to achieve sustainability goals. Eco-conscious employees foster an internal culture that supports sustainable innovations and operational improvements, which can translate into competitive advantage, improved reputation, and regulatory compliance. Moreover, systems theory suggests that organizations function as interconnected systems where employee behaviors influence and reinforce organizational processes and outcomes. Green behaviors by employees permeate organizational routines, shaping policies and practices that enhance sustainability. For example, employee suggestions for energy-saving measures or waste reduction initiatives often lead to organizational changes that embed sustainability into operations.

Empirical research supports this connection. Studies have found that higher levels of pro- environmental behavior among employees correlate with improved environmental performance metrics, such as reduced carbon emissions and waste (Ones & Dilchert, 2012). Furthermore, employee engagement in sustainability efforts often predicts the overall effectiveness of corporate environmental programs (Daily, Bishop, & Massoud, 2012). In sum, Employee Eco- Friendly Behavior acts as a foundational driver of Organizational Sustainability by translating individual actions into collective environmental benefits, fostering a culture of responsibility, and enabling the organization to meet its sustainable development objectives effectively. Thus, it is logically and empirically sound to hypothesize a significant positive relationship between Employee Eco-Friendly Behavior and Organizational Sustainability.

H6: Employees Eco-friendly behavior is significantly connected to organizational sustainability

Figure 1: Conceptual Model

Methodology of the Study

Research Design

The study is a cross-sectional quantitative research design using data collected in a determined period. While the cross-sectional nature of this data allows for its characterization at a point in time, it does not permit predictions about subsequent trends. This is a deductive research design, which means it develops hypotheses from existing theories and tests those hypotheses statistically on the collected data using statistical analysis. Modified questionnaires (previous studies) used to collect Data were valid and appropriate. The target population explored in this study were the companies from Banking sector of Bangladesh, The respondents were mainly, mid-level and top level of management comprising CEOs, directors HR Managers and assertive people at policy making of these companies. Based on this frame, we managed to get 400 answers from 25 companies. Initially, 50 companies were considered; however, many were excluded from this sample for not having HR practices in place with consideration for the environment or by not operating in a green way. All participants were researchers by-practice brief and approved informed consent before the data collection process began.

Data Collection and Estimation Techniques

The context for this study is drawn from Pakistan's banking sector where regulatory compliance towards pro-environmental mechanisms still remain insignificant. Within Pakistan, the banking industry relies on chemical waste and practices that generally are not pro- HR. The sample consisting of only structured organizations and SMEs who had implemented green HR practices along with eco-friendly policies, was drawn using purposive sampling technique. This way, we can be sure that the data collected belongs to relevant companies actually practicing green behaviour. The first section of the survey focused on demographics and the second section contained relevant study variables, which were measured using a five-point Likert scale. Smart- PLS 4.0 software was used to analyze the collected data. As the study employed PLS-SEM (Partial Least Squares Structural Equation Modeling), hence, normality condition was not prerequisite. The factor loadings, composite reliability, Cronbach's alpha and average variance extracted (AVE) were used to evaluate the validity and reliability of questionnaire items.

The research involved extensive measurement and structural modeling assessments. We validated the measurement model (outer model) relating observed variables to latent constructs by assessing convergent validity (factor loadings, Cronbach’s alpha, composite reliability) and discriminant validity (AVE, Fornell–Larcker Criterion and HTMT matrix). Construct model (inner model), including relationships between independent, dependent and indirect variables was validated by regression analysis (R-squared values), f-squared values and hypothesis testing on associations (direct and indirect effects)

Measurements

Two main sections constituted the web-based questionnaire survey used for data collection. The first part collected demographic information, and the second part assessed nine proposed constructs in the research model (Goudouris et al., 2020). For each construct, we utilized multiple items based on the related literature (see Appendix A) and assessed those on a 5-point Likert scale from 1 (strongly agree) to 5 (strongly disagree). The questionnaires were evaluated in terms of validity and suitability before the final data collection using two procedures. Thereafter, a panel of four academic experts in the field with expertise in HRM evaluated the

measurement items obtaining an agreement percentage of 90.5%. Added in the suggestions from the panel on keeping it more reliable and readable.

Results and Discussion

Demographic Statistics

Demographic data allows us insights into workforce composition and tenure within Pakistan’s banking sector. Of the 400 participants, 252 are males (63%), while the rest, (148) are females (37%), which also indicates a gender gap similar to social norms that gradually improve over time with increasing number of going into females. The age distribution of respondents showed that the largest band was 21–30 years (38%), indicating that the sector is attracting younger people. 29% falling within the 31–40 age bracket — suggesting many are in (mid-) career classes. 26% of employees were 41–50, only 7% were 51–60 near the retirement age indicating fewer employees actively stay in the sector toward the end of their careers.

Most of the respondents (44%) had a tenure of 11–15 years, indicating career stability. A quarter (25%) had 16–20 years of experience, another 14% had 5–10 years; and 17% had more than 20 years of service indicating a combination veteran and early career professionals. The largest proportion of respondents, 38 percent, were top managers; middle managers accounted for another 32 percent. Directors accounted for 17%, and executives, 14% each, consistent with the sector's relatively structured hierarchy. The industry is stable with a largely middle-aged workforce, though a new generation of younger talent is entering; and while there are more women in the field overall than ever, they still remain outnumbered.

                     Table 1: Demographic Analysis

Common Method Bias

In line with the recommendations made by Park and Ryoo (2013). However, this is the exact thing which we tried to control during research design stage avoid over common method bias (CMB) problem. To do this both procedural remedies and statistical tests, method of Ooi et al. (2018) has applied to keep their identities and answers anonymous. Moreover, we incentivized them to respond without ambiguity. Also, we focused more on the content of the items, to decrease vagueness. Moreover, we conducted some statistical tests to detect CMB. We initially used the single-factor approach by Harman. To identify the number of We conducted principal axis factor analysis taking preliminary factors as critical for the description of variance (Fuller et al., 2016) (Harman, 1976). Results of the test indicated that one root construct was account for

34.08 per cent of the variance sum of squares, which was much lower than desirable 50% (Podsakoff et al., 2003). Lastly, we examined CMB in relation to VIF values of the constructs (Table 4), which were lower than greater than the suggested threshold of 3.3 (Kock, 2015).

Assessment of measurement model

To evaluate the measurement model, this study assessed internal reliability, convergent validity, and discriminant validity following the guidelines of Hair et al. (2012). Construct reliability was measured using Cronbach’s alpha, Dijkstra–Henseler’s rho (ρA), and composite reliability, with all values exceeding the recommended threshold of 0.70, as shown in Table 3 (Henseler et al., 2014). These results indicate a satisfactory level of construct reliability. Additionally, item reliability was confirmed by factor loadings surpassing the minimum recommended value of 0.70, ensuring that each item reliably represented its construct. Convergent validity was verified through the average variance extracted (AVE) for each construct, with values exceeding the minimum threshold of 0.50, as recommended by Fornell and Larcker (1981). As shown in Table

3, factor loadings above 0.50 and composite reliability values above 0.70 provided further support for convergent validity (Henseler et al., 2009).

Table 3. Reliability & Convergent Validity Tests Summary

Discriminant validity was assessed by examining correlations among potentially overlapping constructs, with the square root of each construct's AVE exceeding its correlations with other constructs, satisfying the Fornell-Larcker criterion (Table 4). Moreover, the heterotrait-monotrait ratio (HTMT) values were all below the threshold of 0.90, as shown in Table 5, confirming discriminant validity across constructs (Henseler et al., 2014).

Table 4: Correlation Coefficients, VIF and Discriminant Validity

Structural Model Analysis:

The structural model results provide significant insights into the relationships among the examined variables, with all five hypotheses (H1 to H5) being supported. These findings highlight the critical role of green management practices in promoting employee green behavior and organizational resilience. Green Recruitment and Selections (GRS) significantly influence Employee Green Behavior (EFB) (β = 0.451, t = 11.87, p < 0.001), emphasizing the importance of reward systems in encouraging sustainable actions (Jabbour et al., 2013). Green Training and Development (GTD) also positively affects EFB (β = 0.059, t = 1.97, p = 0.049), suggesting that training programs enhance employees’ environmental awareness and behavior (Renwick et al., 2013). The effect of Green Performance Management (GPM) on EFB (β = 0.115, t = 2.33, p = 0.02) supports the notion that integrating green criteria into performance management systems fosters sustainable behaviors (Jackson et al., 2014). Green Compensation and Reward(GCR) also positively influences EFB (β = 0.109, t = 2.32, p = 0.02), reinforcing that corporate sustainability initiatives inspire responsible employee actions (Jones et al., 2014).

Finally, EFB positively impacts Organizational Resilience (ORS) (β = 0.124, t = 3.24, p < 0.001), suggesting that a green organizational culture strengthens resilience in facing environmental challenges (Bansal & Roth, 2000).

Table 6. Summary of Structural Model Path Coefficients

Predictive Relevance:

The R-square (R²) values in Table 7 indicate the proportion of variance explained by the predictors for each dependent variable. For Employee Green Behavior (EFB), an R² of 0.495 suggests that 49.5% of its variance is explained by the predictors, including Green Recruitment and Selections and training. The adjusted R² of 0.492 reflects minimal shrinkage, indicating a stable model. For Organizational Resilience (ORS), an R² of 0.630 shows that 63% of its variance is explained by the predictors, with an adjusted R² of 0.628, demonstrating a slight reduction but still confirming a robust model fit. These values highlight the significant explanatory power of the predictors for both EFB and ORS.

Table 7: R-Squared Value