Creating Shared Value Through Meta-organizational Common Good Human Resource Management

Research on the role of Human Resource Management (HRM) in fostering sustainability has pointed to the difficulty of changing organizations that have been built and optimized for economic profit. An emerging stream of research on sustainable businesses therefore focuses on organizations that are designed for sustainability from inception. Based on qualitative data, this empirical study investigates the design and functionality of HRM systems in companies that have received awards for their high level of environmental sustainability. Moreover, it examines how these systems contribute to the creation of shared value for the common good. Integrating existing insights from common good HRM and meta-organizational HRM, we elaborate theory of shared HR value creation by firms with exceptional environmental performance. We identify five principles through which common good HR practices are implemented and related outcomes of the HRM system. Our elaborated framework highlights relevant inputs, practices and outputs required for common good HRM and meta-organizational characteristics enabling the shared value creation of the HRM system. Our research has implications for designing strategically targeted HRM systems for environmental sustainability.