Impact of Green HRM Practices on Corporate Sustainability with Moderating Role of Leader Support and Mediating Role of Employee Green Behaviour: A study of Banking Sector of Islamabad, Pakistan

Abstract

This study examined the impact of Green Human Resource Management (GHRM) practices on corporate sustainability in the banking sector of Pakistan, with employee green behavior as a mediator and leader support as a moderator. The purpose was to investigate whether green job descriptions and green recruitment contributed to sustainability outcomes and to assess the behavioral and leadership mechanisms underlying this relationship. A quantitative, deductive approach was adopted using a cross-sectional survey design. Data was collected from 216 employees of five major banks in Islamabad through structured questionnaires. The data were analyzed using Smart-PLS 4, applying Partial Least Squares Structural Equation Modeling (PLS-SEM) to test direct, mediating, and moderating relationships. The findings revealed that green job descriptions and green recruitment had significant positive effects on corporate sustainability. However, employee green behavior did not mediate the relationship, and leader support did not moderate the link between GHRM practices and employee green behavior. The study was limited to five major banks in Islamabad and used a cross-sectional design, which may restrict the generalizability of the findings and limit causal interpretations. Future studies may consider longitudinal designs and broader geographic coverage. The study highlighted the importance of formal HR structures in driving sustainability outcomes. Banking organizations should integrate green job descriptions and green recruitment practices into their HR systems to enhance corporate sustainability performance. The study added contextual evidence from an emerging economy by examining the role of GHRM practices in Pakistan's banking sector and exploring the mediating and moderating mechanisms of employee green behavior and leader support.

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