Effects of Green HRM and CEO ethical leadership on organizations' environmental performance

Abstract

PurposeThis study proposes and tests a model grounded in resource-based theory to describe how the formal rules embedded in an organization's green human resource management (GHRM) combine with informal cues communicated by members of the firm's upper echelon, including the CEO and members of the top management team (TMT), to affect a firm's environmental performance.Design/methodology/approachMulti-source data were collected from 240 human resource managers, chief financial officers and CEOs in 80 firms.FindingsThe results show that CEO ethical leadership moderates the positive relationship between GHRM and TMT green commitment, which in turn mediates the relationship between GHRM and firms' environmental performance.Originality/valueThe tested importance of CEO ethical leadership as an organizational condition that amplifies the effectiveness of strategically aligned HRM systems offers new theoretical insights to advance HRM scholarship.