Impact Of Green Human Capital On Corporate Sustainable Performance

Abstract

The gravest challenge faced by humankind pertains to its survival. Despite all the amenities brought by industrialization, corporate businesses around the globe understand the importance of achieving and maintaining sustainable performance as their foremost objective. The framework laid in the form of Sustainable Development Goals (SDGs) by the United Nations guides both developed and developing countries to achieve marked improvement in various indicators for reducing environmental hazards and achieving sustainable corporate performance. The stakeholder approach also advocates the need to focus on enhancing the interest of stakeholders with the minimal utilization of resources; however, the awareness of the same is relatively lesser across the firms from developing countries. The very premise of this study is to learn and develop an understanding of the relationship between green human capital and Corporate Sustainable Performance (CSP) with the mediating role of competitive advantage in Pakistan, a developing country. This study measures the impact of green human capital on each component of CSP (economic, environmental, and social performance). Based on the deductive approach, the present research employs self-administered questionnaires and surveys (both face-to-face and online) to collect data from the manufacturing and firms operating in the Punjab Province of Pakistan. The data was collected from the senior managers responsible for strategic decision-making and implementation from different industrial hubs. The present study's findings affirm that green human capital significantly explains the economic, environmental, and social performance of manufacturing firms operating in Punjab, Pakistan. Furthermore, competitive advantage significantly mediates the association between green human capital and each performance component (economic, environmental, and social).