The Effect of Socially Responsible Human Resource Management Practices on Sustainable Performance in Case Ethiopian Cement Manufacturing Industry

Abstract

Human resources is the most precious resource available to the firm that needs proper deployment within key strategic goals of the organization. This study is aimed to examine the role of human resources management practices on the relationship between commitment to social responsibility and sustainable performance. This study explained variables such as ethical culture, recruitment and selection, engagement, training, and development in corporate social responsibility-related activities and attaining higher sustainable performance. A mixed approach which is a descriptive and explanatory research design was used. In a cross-sectional study, qualitative and quantitative data were employed. To achieve the study objective data was collected through a questionnaire distributed to the study population, which consisted of all 380 employees from four cement factories using a stratified sampling technique. A proportional stratified random sampling technique was used to collect data from sample factories located in Ethiopia. An in-depth semi-structured interview was conducted with managers at different levels and functional departments from each selected cement factory. To analyze the study data and its variables multiple regression analysis was used to examine the effects of the independent variable on the dependent variable using SPSS V-26 to understand the effect of socially responsible human resource management practices on sustainable performance. The results have shown that the organization's commitment to human resource social responsibility has a positive and significant effect on achieving sustainability in its performance. Based on the results, the study recommended that business organizations should be interested in demonstrating the importance of maintaining the ethical culture in their recruitment processes and selection, demonstrate the desired ethical culture for training, development, and engagement of the employee with a tendency to follow human resource management practices and policies.