The effect of green human resources management practices on corporate sustainability from the perspective of employees

Nart, Sima; Bilgili, Ahmet; Orgut, Emine Demet Article The effect of green human resources management practices on corporate sustainability from the perspective of employees Economics: The Open-Access, Open-Assessment Journal Provided in Cooperation with: De Gruyter Brill Suggested Citation: Nart, Sima; Bilgili, Ahmet; Orgut, Emine Demet (2024) : The effect of green human resources management practices on corporate sustainability from the perspective of employees, Economics: The Open-Access, Open-Assessment Journal, ISSN 1864-6042, De Gruyter, Berlin, Vol. 18, Iss. 1, pp. 1-14, https://doi.org/10.1515/econ-2022-0060 This Version is available at: https://hdl.handle.net/10419/306076 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ Research Article Sima Nart*, Ahmet Bilgili, and Emine Demet Orgut The Effect of Green Human Resources Management Practices on Corporate Sustainability from the Perspective of Employees https://doi.org/10.1515/econ-2022-0060 received February 07, 2023; accepted November 17, 2023 Abstract: This study examines the impact of Green Human Resources Management (GHRM) in the textile and fashion industry on corporate sustainability (CS). In addition, the indirect effects of organizations’environmental performance (EP) and employee commitment to CS are also examined. The research was carried out with the participation of the employees (n=129) of Turkish organizations operating in the fashion and textile sector that adopt a sustainable business management approach. Structural equation modeling via smart PLS was used for data analysis. The findings showed that GHRM positively affects CS, and EP mediates this relationship. However, employee commitment did not have a mediating effect in this relationship. These results provide CS experts and managers with evidence-based insights into designing GHRM practices and sustainability strategies. Keywords: corporate sustainability, sustainability, green human resources management, environmental performance, employee commitment JEL classification codes: M1, M10, M14 1 Introduction Global environmental problems have led to the development of the understanding of sustainability and increased sensitivity to this issue. From a business perspective, sustainability represents a window into the organization’s future that deals with critical environmental, economic, and social strategies determining whether the organization will succeed in the market. Although traditional expressions such as corporate social responsibility andcorporatecitizenshiparestillcommonwithinthe scope of sustainability practices, they have begun to be replaced by a broader and more comprehensive term, corporate sustainability (Jamal et al., 2021). Corporate sustainability (CS) is an approach that creates long-term shareholder value by utilizing the opportunities and managing the risks emerging from economic, environmental, and social developments. Increasing the environmental consciousness of organizations and efforts to overcome ecological problems bring the green management approach to the fore. The success of green-oriented management practices is highly dependent on the presence of employees who are aware of ecological problems, accept the associated responsibility, and are ready to take the initiative in this regard. In this context, GHRM is the most practical approach that supports green recruitment and selection, green training, wage and reward processes, and employee participation in sustainable goals (Yong et al., 2020). GHRM focuses on developing strategies and organizational policies to create an environmentaloriented organizational culture. The textile and fashion sector is among those industries that cause particular harm to the environment and the balance of the ecosystem and have a destructive effect on natural resources. Thus, studies on the sustainability of the textile and fashion industries have particular importance. One of the prominent research topics is the examination of the process of achieving sustainable goals with the employees of fashion companies (Lorincová et al., 2019). There are two main reasons that this issue comes to the fore. First, human resources are among the most critical determinants of organizations being able to achieve their goals (Amberg & McGaughey, 2019). In addition, the effect of successful green management practices can achieve positive development, and this increases the sensitivity to  * Corresponding author: Sima Nart, Sakarya Business School, Sakarya University, Sakarya, Turkey, e-mail: [email protected] Ahmet Bilgili: Sakarya Graduate School of Business, Sakarya University, Sakarya, Turkey, e-mail: [email protected] Emine Demet Orgut: Sakarya Graduate School of Business, Sakarya University, Sakarya, Turkey, e-mail: [email protected] ORCID: Sima Nart 0000-0002-8264-9828; Ahmet Bilgili 0000-0001-69560936; Emine Demet Orgut 0000-0002-2213-0186 Economics 2024; 18: 20220060 Open Access. © 2024 the author(s), published by De Gruyter. This work is licensed under the Creative Commons Attribution 4.0 International License. the subject. Second, it is known that employees’commitment to the organization can positively affect organizational performance and achievement of goals. In this context, if fashion organizations set sustainable goals and their employees are committed to them, the probability of organizations achieving them will increase (Paillé et al., 2020). 1.1 Purpose The primary purpose of this article is to explore the textile and fashion industry’s perspective on the impact of GHRM practices on CS practices. Our study investigates and tests the interrelationships between GHRM, environmental performance (EP), organizational commitment (OC), and CS within the scope of the research model presented. Accordingly, our article addresses three critical research questions: –What is the nature of the association between GHRM and CS? –What are the effects of GHRM practices on EP and OC? –Do EP and OC act as mediators in the effect of GHRM practices on CS? 1.2 Contribution Organizations rapidly adopt GHRM to develop an environmentally friendly culture to ensure CS. However, adopting a green organizational understanding spanning all departments is critical to success. Therefore, there is a need for research that deals with GHRM and organizational performance relationships in detail. There are a small number of studies that link GHRM with organizational performance available in the literature. Although GHRM has gained popularity and there has been an increase in the associated research, most studies on GHRM do not focus on the links between corporate strategy and human resource management strategy alignment or human resource functions (Tanova & Bayighomog, 2022). Instead, the focus of GHRM studies over the past decade has mainly been on the individual human resource management functions of recruitment and selection, training and development, performance management, rewards, and compensation systems (Pham et al., 2019). Also, GHRM implications are mainly examined from managers’perspectives (Singh et al., 2020; Tuan, 2022). It is known that GHRM practices should serve the organization’s sustainability, just like other modern managerial practices (Ullah, 2017). However, in the current situation, the effect of GHRM practices on CS needs to be adequately examined from the employee’sperspective.Inthisstudy,tofill this gap, the effects of GHRM practices on CS goals are discussed from the perspective of employees, and the attempt made to explain the links that will ensure strategic harmony. Thus, instead of considering GHRM practices independently from other human resources management activities, it could potentially contribute to harmonizing corporate strategy and GHRM practices. 1.3 Textile and Fashion Industry in Türkiye Turkey is the sixth-largest producer country in the world in the export of textile and fashion products. It can be seen that the primary determinant affecting the strategies of the enterprisesinthissectoristhedevelopmentarisingfrom global climate change. For example, according to the European Union Green Deal of 2019, the European Union has set the goal of being a climate-neutral continent by 2050. To achieve this goal, new sustainable practices, which are part of the Circular Economy Action Plan, will also be implemented in the textile and apparel industries. Since the EU sources most of its ready-made clothing and textile products from countries outside the EU, it can be predicted that supplier countries will be expected to keep up with this transformation. Turkey is the third-largest supplier to the European Union apparel industry. Therefore, the entry of the European Union into a process of total change will force the organizations in the Turkish textile and fashion sector to change. Research that provides insight from within the organization is needed to guide this change. In this context, the findings from this study are expected to provide valuable clues from the perspectives of Turkish textile and fashion business employees regarding the transformation of human resources practices within the framework of the green perspective. 2 Theoretical Framework, Hypotheses, and Research Model The conceptual model of the research is based on two theories. The first theory is the stakeholder theory, which focuses on the importance of stakeholder groups in improving an organization’s performance. An organization’s stakeholders are the groups with which it interacts, constituting the target audience to whom the organization 2Sima Nart et al. fulfills its responsibilities (Freeman & Dmytriyev, 2017); ultimately, organizations can only achieve sustainability with the support of stakeholders (Dmytriyev et al., 2021). Stakeholder theory aims to help organizations strengthen their relationships with their internal and external environments to gain a competitive advantage. To ensure CS and understand environmental and social impacts, an organization needs to look at both its internal and external stakeholders. Organizations can focus on CS by training employees and developing strategies or policies that ensure sustainability. By promoting sustainability and implementing GHRM, the organization meets the demands of multiple stakeholders. Thus, CS and GHRM are two interrelated issues (Jamal et al., 2021) because both seek to serve the interests of internal and external stakeholders. The second is the ability-motivation-opportunity (AMO) theory. According to the theory, three components provide the employee’sdiscretionaryeffort. These employees have the necessary abilities and need appropriate motivation, and employers offer employees the opportunity to participate (Appelbaum et al., 2001). AMO theory is widely accepted in the HRM literature to explain the link between human resource practices and performance (Marin-Garcia & Tomas, 2016). Organizational performance increases if employees are motivated and enabled to use their skills. Motivation is considered here to be a condition for the use of individual skills. Although the relationship between A (ability) and M (motivation) in the model is explained in this direction, O (opportunity) presents the creation of options in the organization where employees can use their skills. Although employees may be highly skilled and have the necessary motivation, they will only be able to use these if given the opportunity. Therefore, there is a need for a balance in which these three variables can be applied together (Alsubaie, 2016). 2.1 CS The pessimistic predictions of our planet are leading organizations to be more sustainable. CS is an umbrella term that includes many other terms, such as corporate social responsibility and corporate governance. When evaluated in terms of organizations, CS is generally associated with organizations’mobilization of accountable actions. Implementing accountable actions in organizations adds value to society and the environment and supports the sustainability of organizations. CS is an intertwined system of economic, social, and ecological components (Bansal, 2005; Camilleri, 2017). It is also characterized by various economic, environmental, and social objectives, all of which seem individually desirable but which are “indissolubly connected and interdependent”(Bansal, 2002). In this context, six essential criteria can be listed: eco-efficiency, socio-efficiency, socioefficiency, adequacy, and ecological equality (Dyllick & Hockerts, 2002). The CS orientation enables organizations to integrate CS into their strategies, policies, and management systems. Legal regulations, environmental protection awareness, increasing customers, and demands from other stakeholders play a decisive role in the orientation of organizations to CS practices. While determining the necessary operations to meet these expectations, the support received from within the organization and compliance with the strategies for sustainability gain importance. In this context, practices such as in-organization training on environmental protection, employee empowerment, teamwork, and green reward systems are likely to bring the organization together around green values. In other words, applying green understanding in human resources management is necessary for an organization to be sustainable because stakeholders expect organizations to protect the environment, use natural resources more efficiently, support recycling, and reduce all possible environmental pollution and toxicity. The strategic objectives of CS are economic development, corporate effectiveness, stakeholder focus, and sustainable ecosystems (Dyllick & Hockerts, 2002). 2.2 GHRM GHRM is a management approach that supports human resources policies and practices within the scope of environmental sustainability. Organizations’management practices for environmental protection and sustainability are directly related to human resources management, where human resources constitute the lifeblood of an organization (Saeed, et al., 2019). GHRM refers to policies and practices that make HR processes green to benefit employees, society, the natural environment, and the organization itself (Opatha & Arulrajah, 2014). Unlike traditional HR, this represents the execution of human resources practices in accordance with the organization’s environmental goals and a planned manner. GHRM practices upgrade organizational operations by encouraging employees’pro-environmental behaviors (Aftab et al., 2023; Ari et al., 2020; Fawehinmi et al., 2020; Saifulina et al., 2020). Employees who have adopted a green understanding are expected to contribute more to the performance and future of the organization by implementing green practices and policies for society, the environment, and business life. Effect of Green Human Resources Management Practices 3 Some of the practices adopted by organizations within the scope of green HRM are as follows: switching to paperless offices, supporting car sharing to save fuel and time in traffic, conducting training and meetings online, benefiting from daylight, supporting the construction of green buildings that allow natural heating and lighting, rewarding employees for sustainable green ideas, and giving back informing about recycling awareness and waste control (Nagarajan, 2020; Pandey et al., 2016). When evaluated in terms of recruitment processes, it can be seen that green job definitions are formed that include awareness of candidates about environmental problems and solutions. Employees who can live and implement the green culture adopted by organizations should be prioritized during recruitment. Employees with these qualifications can ensure that the green culture of organizations is reflected outside. In this way, the green culture and practices of the organization will be visible to those outside the organization. Rangarajan and Rahm (2011) stated that when organizations implement GHRM strategies, they have a strong corporate social agenda, value employees’environment and social priorities, and increase their organizational prestige. This positive image is essential to attracting employees and customers to the organization and ensuring their participation in achieving environmental goals. Employee participation in green processes increases the effectiveness of green management practices by aligning employees’motivations and goals with such. A detailed review of the relevant literature shows that more research needs to be done on GHRM in environmental sustainability research. Cheema and Javed (2017) showed that green human resource management is a critical determinant of a sustainable environment. In their research based on organizational support theory, Cantor et al. (2012) stated that human resource practices can affect employees’perceptions of organizational care. In this way, the tendency of employees to exhibit sustainable behavior increases with their desire to make personal contributions. To build a sustainable organization, it is essential to integrate sustainability into the organization’s human resources framework (Jabbour et al., 2019). All of the aforementioned leads us to establish the following research hypothesis. H1: Green human resources management positively relates to CS. 2.3 OC OC is one of the various topics that has long been popular in organizational psychology. The reason for this is the direct and indirect contributions of the employees who are identified with the organization (Karrasch, 2017). The identification of employees with their organizations and adopting organizational goals is a critical issue for organizations to achieve their goals. In this context, organizations employ qualified personnel to ensure their professional development and keep employees within the organization. Through this, organizations gain a competitive advantage against their competitors and serve to realize their primary goals (Bernardin & Russell, 2006). Research shows that the increase in employees’commitment to their organizations positively affects various critical organizational goals, such as customer satisfaction (Setyaningrum, 2017), employee productivity (Bhatti & Qureshi, 2007), and job satisfaction (Eslami & Gharakhani, 2012). Social identity theory suggests certain theoretical connections between employees’perceptions of corporate responsibility practices and OC (Ashforth & Mael, 1989;Le et al., 2013). According to social identity theory, individuals’ views are influenced by their membership in social organizations, including the organizations in which they work. Individuals attempt to form or develop positive self-concepts by comparing their characteristics with other groups; positive comparisons lead to an enhanced self-concept. If an organization strives to engage in corporate responsibility activities, its employees are generally proud to be members of such an organization. Employees likely feel that their organization cares about their present and future. If employees positively evaluate an organization’s ethical principles, values, and social sensitivity, they are expected to develop positive attitudes toward the organization. For this reason, employee commitment can be essential to achieving a company’s goals. The opportunities that organizations offer to their employees, the environment, and stakeholders and the indirect reflections of their attempts to comply with ethical principles can also be explained by the theory of social change (Blau, 1964). The green goals determined by organizations within the scope of GHRM and the green training and reward systems they apply have an increasing effect on the loyalty and trust of the employees in the organization. At the same time, it is expected that organizations’ application of remarkable practices in terms of macroenvironmental sensitivity will form the basis for both external stakeholders and employees to develop positive attitudes toward the organization (Aboramadan, 2020; Tanova & Bayighomog, 2022). Organizations that implement GHRM define green targets and offer their employees green training programs and reward systems that include green indicators. In this way, employees’interest and participation in environmental 4Sima Nart et al. issues can be increased. This strengthens employees’commitment to their organizations and enables the latter to achieve successful environmental outcomes (Úbeda-García et al., 2021). Employees’commitment to the environment depends on their willingness to share, and care about, their organization’s environmental concerns (Paillé et al., 2020). Thus, organizational green goals can be achieved if employees are committed. On the basis of the aforementioned discussion, we propose that: H2: Green human resources management positively relates to OC. H3: Organizational commitment positively relates to CS. To successfully integrate CS into an organization, radical changes must be made to the organizational culture. This change requires the reorganization of existing policies, processes, and practices according to environmental, economic, and social goals, which are the subdimensions of sustainability (Aguilera et al., 2007). In this context, commitment is important because it guides people’s behavior in ways that support achieving inclusive goals that transcend individual interests (Meyer & Herscovitch, 2001; Raineri & Paillè, 2016). This mindset can direct employees’ behaviors toward activities compatible with CS efforts (Temminck et al., 2015). Therefore, employees’commitment to sustainable goals will directly affect organizational success. GHRM promotes responsible behavior, attitudes, and commitment of employees. This concept, which can be expressed as the green commitment of employees, regulates employees’feelings toward the environment, brings them together around organizational values, and supports their efforts toward environmental goals (Pham et al., 2019; Saeed et al., 2019). Employees’commitment to their organization’s environmental goals is a result of GHRM practices (Ansari et al., 2021). The commitment of employees to the organization and its goals is crucial because it guides people’s behavior in a way that supports the achievement of inclusive goals that transcend individual interests (Meyer & Herscovitch, 2001; Raineri & Paillè, 2016). This mindset can direct employee behaviors to activities compatible with CS efforts (Temminck et al., 2015). The workplace provided by greenfocused organizations with GHRM motivates employees to change their opinions, values, and norms to adapt to the company’s green culture and goals (Pinzone et al., 2016). For example, green training programs enhance+ employees’understanding of environmental issues and help them adopt skills that can result in a lasting commitment to the environment (Perron et al., 2006). Studies in the literature provide evidence that GHRM practices contribute to employees developing a green commitment toward organization’s environmental goals (Ansari et al., 2021). In addition, employee commitment is expected to mediate the organizational outcomes of GHRM practices. A limited number of studies deal with the indirect effects of commitment on performance outcomes. Based on these explanations, the following hypothesis can be formulated: H4: Organizational commitment mediates the relationship between green human resources management and CS. 2.4 EP EP refers to the commitment of organizations to demonstrate measurable operational parameters within the context of environmental protection objectives (Roscoe et al, 2019). GHRM is seen as the most appropriate strategy through which to support employees’ability to achieve the EP goals of the organization (Amui et al., 2017; Ren et al., 2018). GHRM is an important resource for achieving corporate goals and increasing an organization’s EP through employee engagement (Aftab et al., 2023). In this context, GHRM practices such as green recruitment and selection, green training, and green performance evaluation have a critical role in employees’efforts to increase EP. There are studies pointing out the positive effects of these practices on the success of EP programs (Latan et al., 2018; Yusoffet al., 2020). By force of GHRM, the environmental protection perspective of the organization is quickly adopted by the employees. At the same time, employees are brought together regarding common environmental goals and are more willing to exert more effort in this regard. In particular, green training raises the consciousness of environmental problems in the workplace and encourages employees to solve them (Jabbour et al., 2010). Green training empowers employees by providing them with the “knowledge, attitudes, and skills”to help them identify environmental issues and take appropriate action in the workplace to improve green performance (Latan et al., 2018). Moreover, evaluating employees’green performance increases the associated sense of responsibility. Green performance appraisal is essential to achieving EP goals because it provides a strategy for measuring employee performance against green criteria (Jabbour, 2011). It improves EP by harmonizing behaviors around common goals (Guerci et al., 2016). Thus, they provide an opportunity to reduce waste, increase productivity, and develop innovative solutions (Mousa & Othman, 2020; Pinzone et al., 2016). However, more empirical work is needed, especially to guide textile and fashion companies to participate in environmentally friendly management practices. Based on the literature, the following hypotheses have been proposed: Effect of Green Human Resources Management Practices 5 H5: Green human resources management positively affects the organization’s EP. H6: Environmental performance positively relates to CS. HRM practices strengthen the organization’s human capital by improving employee skills and increasing performance. GHRM practices, on the other hand, consider green criteria in recruiting, improve employees’green skills through training, and provide them with the opportunity to participate in green practices so that green management performance can improve (Masri & Jaaron, 2017; Pinzone et al., 2016). At the same time, GHRM creates an environmentally friendly organizational culture and encourages environmental behavior amongst employees. Thus, the company’s EP is positively affected (Kim et al., 2019). CS is the outcome of organizational policies and functions that focus on the development of an organization and the natural environment. GHRM implements these policies and procedures with a strategic perspective (Adubor et al., 2022). We argue that GHRM practices, which have a positive effect on both EP and CS, have a positive effect on CS through EP. In other words, if hypotheses H1, H5, and H6 are significant, EP is expected to mediate the relationship between GHRM and CS. The following hypothesis was developed to analyze the direct and indirect roles of GHRM practices on CS: H7: Green human resources management affects CS through the organization’s environmental performance. 2.5 Research Model Figure 1 depicts the interrelationships of GHRM, OC, EP, and CS. As the model contends, the availability of GHRM practices stimulates employees’perceptions of OC to CS. Similarly, GHRM practices trigger employees’efforts toward environmental performance for CS. These relationships altogether suggest that OC and EP mediate the impact of GHRM on CS. 3 Methodology 3.1 Sample Procedure and Data Collection The quantitative research type was preferred to test the relationships between variables in the study’s research model. In this context, an online questionnaire form was created to collect the necessary data and test the hypotheses. The research population consists of the employees of fashion and textile organizations with CS practices. Most organizations operating in the textile sector in Turkey are within the scope of SMEs. Therefore, the employees of a limited number of organizations are included in the population. In the current situation, estimating the number of employees in the population takes considerable work. Therefore, an attempt was made to reach the employees of the organizations operating in the national arena, institutionalized, and well known, and it is evident that they apply to CS practices with the convenience sampling method. Participation was voluntary, so the decision to join or exit the study at any time was allowed. It was shared with the participants that there were no right or wrong answers and that they should give the answer that best reflected their feelings on the matter. It was ensured that the participants did not reveal any identity information. It was stated that the answers given would be used only for research and would not be shared with third parties. In Corporate Sustainability (CS) Green Human Resources Management (GHRM) Environmental Performance ( EP ) Organizaonal Commitment (OC) H1 H5 H2 H6 H3 H7 H4 Figure 1: Research model. 6Sima Nart et al. addition, each variable in the questionnaire was shared on separate pages in the online survey form. Through these actions, the attempt was made to reduce potential threats and common method bias. The survey form link was sent to the employees of the companies that had agreed to participate in the study by their managers. The questionnaire was applied online between November 2022 and January 2023. Businesses operating in the fashion and textile sector in the sense of CS in Turkey constitute the general population of the research. Employees of a well-known brand, who are representative of the population with stores in Turkey and abroad, make retail sales, and are manufacturers of women’s fashion and textile products, constitute the research population. The convenience sampling method was chosen as the preferred data collection method in the study. The convenience sampling method is generally preferred because of time and cost constraints. After eliminating missing and sloppy questionnaires, the final sample size consisted of 129 participants. Although the sample size is limited, since the number of organizations that meet the criteria of the population is limited (as mentioned in Turkey, the majority of textile firms are SMEs), it is expected that the current sample size will be reasonably representative of the population. 3.2 Participants In the demographic information section, personal information was collected on subjects such as gender position and age. Of the 129 participants who fully answered the questionnaire, 57% (75 persons) were women and 43% (54 persons) were men. In terms of employment status, the maximum response was found to be experts (production, purchasing, and HR departments, designer, etc.) at 64% (82 people), while middle managers constituted 36% (47 people). In two age groups (younger than 40 years and older than 40 years), there were 72% (92 people) and 28% (37 people) in the sampled groups, respectively. 3.3 Scales All constructs in this study were measured with performed scales initially published in English. The scales were translated into Turkish using the translation-back translation method. All structures included in the model have been made available based on previously validated tools. To measure the “corporate sustainability”perceptions of the participants, a scale consisting of 10 items adapted by Yang and Jang (2020) was used. The scale developed by Raineri and Paillè (2016) to measure “organizational commitment”was used. Green Human Resources Management practices were measured using a five-item scale from Aboramadan and Karatepe (2021), and finally, the scale measuring “environmental performance”was adapted from the scale used by Lee and Ha-Brookshire (2017). All scales are scored via a five-point Likert scale. The questionnaire was administered in Turkish. Turkish versions can be obtained from the corresponding author upon request. 4 Results 4.1 Measurement Model: Validity and Reliability The partial least squares structural equation modeling (PLS-SEM) technique was used to test the measurement (validity and reliability) and structural models (hypothesis testing). Measurement and structural models were analyzed using the SmartPLS version 4 software package. Before the research model analysis, the first thing to do is to meet all the necessary criteria in the measurement model (Hair et al., 2019). Internal consistency reliability, convergent validity, and discriminant validity were evaluated in this context. The Cronbach’s alpha and CR (composite reliability) coefficients were used to measure internal consistency reliability, and factor loads and AVE (average variance extracted) values were used for convergent validity. Factor loads were ≥0.708; Cronbach’s alpha and CR coefficients were ≥0.70; the explained average variance value (AVE) should also be ≥0.50 (Fornell & Larcker, 1981; Hair et al., 2019). In convergent validity, the HTMT criterion proposed by Fornell and Larcker (1981) and Henseler et al. (2015) recommended that HTMT criteria should be met. According to the HTMT criterion, the square root of the explained mean variances (AVE) of the structures in the research should be higher than the correlations between the structures in the research (Fornell & Larcker, 1981). In the HTMT criterion, Henseler et al. (2015) state that it should be below 0.90 for close concepts and below 0.85 for distant concepts. The results of the internal consistency reliability, convergent validity, and the HTMT criteria of the constructs in the study are presented in Table 1, and linearity and HTMT criteria are given in Table 2. Effect of Green Human Resources Management Practices 7 The factor loadings and significance levels of the factors are at an acceptable threshold (above 0.708 and significant at p<0.01). However, item 18 (factor load 0.538), the item of organizational commitment (OC), is below the threshold value of 0.708. According to the study by Hair et al. (2021), items with factor loads between 0.40 and 0.70 are not excluded from the model if their AVE or CR values are above the threshold value. Therefore, according to Table 1, since the calculated AVE and CR values are above the threshold values, organizational commitment item 18 (factor load 0.538) was not excluded from the measurement model. In addition, the “CS”item 3, “Environmental Performance (EP),”item 7, “Green Human Resources Management (GHRM),”and item 8, “Green Human Resources Management (GHRM)”were excluded from the research model. Since the Cronbach’s alpha and CR coefficients were 0.70 and above, internal consistency reliability was ensured. Convergent validity is provided since the structure’sfactor loads are between 0.538 and 0.840, and the explained meanvariance values (AVE) are above the 0.50 threshold value. As shown in Table 1, the square root of the AVE of each structure is higher than the correlation with other structures. It meets Fornell and Larcker’s (1981) distinctiveness HTMT criterion. Table 2 shows that the HTMT values are below 0.85. This further confirms the discriminant validity of the constructs. Finally, Hair et al. (2019) state that there is no linearity problem when VIF <3 between variables. Thus, since the VIF values between variables in Table 2 are lower than the threshold value of 3, it is understood that there is no linearity problem. 4.2 Test of Hypotheses To test the structural model and hypotheses of the research, 5,000 subsamples were taken from the sample with bootstrapping at a 95% confidence interval and tested using a bias-corrected bootstrapping technique. Figure 2 presents the model. When the R 2 values of the model are examined, one can determine that CS is explained at a significant rate of 79%, OC at 39%, and environmental performance (EP) at 39% (Hair et al., 2019). Effect size coefficients f 2 ≥0.020 low, f 2 ≥0.150 medium, and f 2 ≥0.350 are considered significant effects (Cohen, 1988). In this context, when the effect size coefficients were examined as reported in Table 3, it could be seen that the effects of GHRM on EP, GHRM on OC, GHRM on CS, and EP on CS had a high effect size. The effect of OC on CS can be expressed as a low effect. Hair et al. (2019) claim that the predictive power coefficients (Q 2 ) calculated for endogenous variables are greater than zero, indicating that the research model can predict endogenous variables. In addition, if the Q 2 value is greater than 0.25, it is a medium-level estimation, and if it is greater than 0.50, a large estimation can be considered. Thus, it can be deduced that the research model has the power to predict endogenous variables since Q 2 values are greater than zero, according to Table 2. While EP and OC endogenous variables have moderate predictive power, they have high predictive power for the CS variable. According to Table 4, while six of the seven hypotheses were supported, two hypotheses (H4 and H6) were rejected. According to the findings obtained, green human resource management >environmental performance (β=0.627; p< 0.01); green human resource management >organizational commitment (β=0.625; p<0.01); green human resource management >corporate sustainability (β=0.492; p<0.01); Table 1: Reliability and validity assessment Measures CαCR AVE 1 2 3 4 1. Corporate sustainability 0.938 0.940 0.683 0.826 2. Environmental performance 0.904 0.908 0.763 0.801 0.873 3. Green human resources management 0.945 0.946 0.774 0.805 0.627 0.880 4. Organizational commitment 0.819 0.843 0.589 0.665 0.698 0.625 0.768 Notes:Cα, Cronbach’s alpha; CR, composite reliability; AVE, average variance extracted. Values along the diagonal are the FTMT criterion, which is the square root of the explained mean-variance (AVE) values of the structures in the study. Values under the diagonal are the correlation between structures. Table 2: Discriminant validity –HTMT criterion Measures VIF 1 2 3 4 1. Corporate sustainability N/A — 2. Environmental performance 2.209 0.802 — 3. Green human resources management 2.200 0.803 0.628 — 4. Organizational commitment 1.857 0.651 0.705 0.595 — Note: VIF, variance inflation factor. 8Sima Nart et al.