Effect of Socially Responsible Human Resource Management Practices on Organizational Sustainability Mediated by Employee Engagement Evidence from Ethiopian Manufacturing Industries

Abstract

In recent times, socially responsible human resource management (SRHRM) has gained considerable attention, encouraging organizations to foster a positive attitude toward employees in the pursuit of long-term sustainability. This concept emphasizes that businesses have a responsibility to contribute to the welfare of society and the environment. The aim of this study is to examine the relationship between SRHRM practices and organizational sustainability, as well as to explore how employee engagement mediates this relationship. Data was collected through a self-administered questionnaire from 382 employees across twelve Ethiopian manufacturing companies, using convenience sampling. The study utilized covariance-based structural equation modeling to test the proposed hypotheses. The findings revealed a strong connection between SRHRM practices and organizational sustainability (β= .532). Additionally, the results indicated that employee engagement partially mediates the relationship between SRHRM and organizational sustainability in the context of Ethiopian manufacturing industries (β=.236). Employee engagement mediates 67.4% of the relationship between the constructs. The results of this study will highlight the importance of SRHRM in fostering employee engagement and promoting sustainability within the manufacturing sector. It also offers valuable insights for policymakers, enabling them to focus on SRHRM practices that contribute to organizational sustainability.