ESG-ORIENTED HUMAN RESOURCE MANAGEMENT PRACTICES AND ORGANIZATIONAL OUTCOMES: THE MEDIATING ROLE OF EMPLOYEE ENGAGEMENT AND ETHICAL LEADERSHIP

Purpose: The focus on Environmental, Social and Governance (ESG) has changed the way organizations approach their strategies globally. HRM is pivotal in the successful implementation of ESG initiatives as it incorporates sustainability, social responsibility, and ethical governance into employee management and development. Design/Methodology/Approach: This study investigates the linkages between organizational outcomes and ESG-oriented HR practices. The HR practices that are aligned with ESG principles are green recruitment and selection, sustainability-driven training and development, diversity and inclusion initiatives, employee well-being programs, ethical leadership development and performance management systems that are designed to support ESG goals. The study starts from the perspective of Stakeholder Theory, Resource Based View (RBV), and Social Exchange Theory to conclude that ESG oriented HR practices positively affect employee engagement, organizational commitment, innovation, sustainability performance and overall organizational effectiveness. Survey data 300-500 from managers and employees from a variety of public and private sector organizations is suggested for use in a quantitative research approach. Structural Equation Modeling (SEM) can be used to analyze the relationships between constructs. Findings: The findings will provide evidence that organizations that implement ESG aligned HR practices are able to get better organizational outcomes by boosting employee satisfaction, boosting corporate reputation, boosting sustainability performance, and boosting their competitiveness in the long term. Originality/Value: The study adds to the growing body of research on sustainable HRM by offering an integrated framework that connects ESG concepts and organizational performance. Conclusion/Implications: HR professionals, policymakers and organizational leaders seeking to build sustainable and socially responsible work environments without compromising on business excellence will find implications in the findings. Keywords: ESG, Human Resource Management, Sustainable HRM, Organizational Outcomes, Employee Engagement, Sustainability Performance, Corporate Governance