Environmental development in Brazilian companies:
The role of human resource management
Charbel Jose Chiappetta Jabbour
n, Ana Beatriz Lopes Jabbour,
Adriano Alves Teixeira, Wesley Ricardo S. Freitas
UNESP - Univ Estadual Paulista (The Sao Paulo State University) Av. Eng Edmundo C. Coube, 14-01, 17360030 Bauru, Sao Paulo Brazil
a r t i c l e
i n f o
Article history: Received 9 January 2012 Accepted 10 May 2012 Keywords: Environmental management Human resources BrazilGreen human resource management
a b s t r a c t
Specialized literature states that proper environmental manage-ment at companies requires support from human resource management. This occurs because the more efficient and effective human resource management is, the more it tends to contribute towards the organization’s objectives. Considering that environ-mental management is an emerging organizational objective, human resource practices, when efficient and effective, tend to incorporate environmental goal and to become greener. In order to contribute to this emerging field of research, this paper reports on an empirical study about the relationship between human resources and environmental management at 75 Brazilian companies. The data collected were analyzed statistically using Structural Equation Modeling. The main results indicated that human resource management practices tend to statistically significant relate to environmental management at analyzed companies, through validation of H1, but his relationship can be
considered weak.
&2012 Elsevier B.V. All rights reserved.
1. Introduction
The intensification of environmental concerns has been making companies adopt environmental
management practices at an increasingly higher rate (
Boiral, 2006
;
Benito and
Gonza´lez-Benito, 2006
). One of the arguments favoring adoption of these environmental management
practices is that they can benefit firms, giving origin to the so-called ‘‘green and competitive’’ (
Porter and
van der Linde, 1995
;
Hunt and Auster, 1990
;
Berry and Rondinelli, 1998
;
Molina-Azorin et al., 2009
).
Contents lists available at
SciVerse ScienceDirect
journal homepage:
www.elsevier.com/locate/envdev
Environmental Development
2211-4645/$ - see front matter & 2012 Elsevier B.V. All rights reserved. http://dx.doi.org/10.1016/j.envdev.2012.05.004
n
Corresponding author.
Among those benefits that can be ascertained from environmental management there is the
improvement in the firms’ operational performance, such as a reduction in production costs (
Porter
and van der Linde, 1995
). However, specialized literature affirms that environmental management can
create synergy with management practices from other areas in a firm (
Wagner, 2007
).
Human resources stand out among the most important to environmental management (
Wilkinson
et al., 2001
). This study maintains the presupposition that the more efficient and effective resource
management practices are at a given organization, the more human resources will know the
organization’s objectives and goals and the more they may contribute towards achieving these goals
(
Collins and Clark, 2003
). In this sense,
Huselid et al. (1997)
affirm that the more effective human resource
practices are, the more significant the organizations’ performance tends to be, since the human resource
areas are better prepared to contribute towards achieving the organizational goals.
Osman et al., (2011)
affirm that human resource practices also relate positively to the results at Malaysian companies.
Taking into account that the adoption of environmental practices has become a new organizational
objective (
Berry and Rondinelli, 1998
), support of human resource management practices is considered
fundamental for adopting environmental management practices (
Jackson et al., 2011
;
Govindarajulu and
Daily, 2004
;
Daily and Huang, 2001
;
Jabbour and Santos, 2008
;
Sarkis et al., 2010
). These researchers
affirm that human resource management must align its practices (such as recruiting, selection,
performance evaluation, training) to environmental management objectives. This process was called
Green Human Resource Management (
Renwick et al., 2008
;
Jackson et al., 2011
), considering the
hypothesis that the more intense the GHRM, the more intense the adoption of environmental
management practices will be by firms (
Bohdanowicz et al., 2011
;
Jabbour et al., 2010
).
However, most literature regarding the contributions of human resources to environmental
management is theoretical in nature (
Jackson et al., 2011
;
Govindarajulu and Daily, 2004
;
Daily and
Huang, 2001
;
Jabbour and Santos, 2008
). Therefore, empirical evidence is needed on the theme.
Consequently, the objective of this paper is to verify, through Structural Equation Modeling, whether
human resource practices are indeed supporting the adoption of environmental management
practices at 75 automotive companies in Brazil.
2. Conceptual foundations
2.1. Environmental management
According to
Haden et al. (2009)
, environmental management deals with the incorporation of
environmental objectives and strategies to the broader-based objectives and strategies that exist at
the organization. Several reasons can bring a company to adopt environmental management
practices (
Berry and Rondinelli, 1998
). According to
Gonza´lez-Benito and Gonza´lez-Benito, (2006)
,
stakeholder pressure is the main factor that drives organizations towards more advanced
environmental management. Furthermore, more advanced environmental management can improve
the company’s financial performance (Molina-Azorı´n et al., 2009).
Therefore, there is an emerging consensus among scholars of the theme (
Darnall et al., 2008
;
Iraldo et al., 2009
;
Crowe and Brennan, 2007
;
Vachon and Klassen, 2008
;
Yang et al., 2010
;
Gonza´lez-Benito, 2005
;
Sroufe, 2003
) that there are positive results correlating the adoption of environmental
management practices with the organizations’ performance, gauged through various indicators,
especially at environmentally proactive organizations.
Those organizations with the best environmental management tend to adopt the following
human resource practices (
Gonza´lez-Benito and Gonza´lez-Benito, 2006
):
Clear policy of valorization of environmental management through a precise declaration from
business directors about the main environmental aspects and impacts generated (
Boiral, 2006
);
Environmental training for all employees aimed at promoting environmental policy and permitting
employee awareness of their activities’ environmental impacts (
Daily and Huang, 2001
);
3Rs, which involve Reduction, Reuse and Recycling applied to water, electric energy, paper and
other natural inputs, increasing business productivity (
Marcus and Fremeth, 2009
);
Development of products with smaller environmental impacts (
Sarkis, 2001
);
Development of production processes with smaller environmental impacts (
Sarkis, 2001
);
Vendor selection based on environmental criteria (
Jabbour and Jabbour, 2009
);
Environmental management systems (ISO 14001 and/or others) (
ABNT NBR ISO 14001/, 2004
);
Voluntary promotion of information on environmental performance (
Boiral, 2006
)
2.2. Human resources contributions to environmental management
Indicative arguments that the concern for technical aspects of environmental management
should be complemented with the management of human and behavioral aspects that support
environmental management practices have been gaining strength (
Perron et al., 2006
), needing
support from human resource management (
Jackson et al., 2011
), through the practices shown in
Table 1
for environmental management objectives.
In specialized literature, this alignment process between human resource and environmental
management practices is called Green Human Resource Management (GHRM) (
Renwick et al., 2008
).
GRHM concerns the alignment of several practices in human resource management (recruiting,
selection, training, performance evaluation, rewards, etc.) to the company’s environmental
management objectives (
Renwick et al., 2008
;
Muller-Carmem et al., 2010
).
Thus emerges the hypothesis for this study
H1—Human resource management practices relate positively to the adoption of environmental
management practices at selected Brazilian companies.
The conceptual model that guides this study is shown in
Fig. 1
. The description of each of the
variables in this model is shown in the paper’s
Appendix A
.
This model will be tested empirically using Structural Equations Modeling, as described below.
3. Methodology
This is a quantitative study based on survey strategy aimed at testing Hypothesis H
1, shown
above. The Brazilian automotive sector is the target for this study, specifically, the auto parts sector.
Table 1
Human resource management practices.
Practices Concepts
Recruiting and selection
Recruiting consists of attracting new people to the company, and selection consists of choosing the right people (Dessler, 2003, pg. 106).
Training A planned organizational action that permits acquiring technical and behavioral skills, while contributing with the development of cognitive strategies that can make the individual more apt to perform current or future functions (Borges-Andrade, 2002).
Performance evaluation
Evaluations can be defined as a process that aims at determining an employee’s work results and one of its main functions is to offer a reason for compensating his results and efforts (T ¨urk and Roolaht, 2007). Performance evaluation is a formalized process for classifying the employee’s current performance (Stoner and Freeman, 1999), while also being [y]‘‘used for making fundamental decisions related to people, such as transfers and rescissions; identifying training needs; providing feedback to employees about how the organization views his performance and, it is frequently used as a basis for salary readjustments’’ (Robbins and Decenzo, 2004, pg. 246).
Rewards The term refers to ‘‘all monetary payments and all goods or merchandise used to reward employees’’ (Daft, 1999, pg. 263). Decisions on structuring and functioning of the reward subsystem and its day-to-day management in the organization are one of the most critical dimensions in people management (Hipolito, 2002).
Benefits ‘‘These are the facilities and conveniences shared by the organization and by employees which are not part of the direct salary’’ (Oliveira and Leone, 2008, pg.108); ‘‘they are divided among those required by law and those that are optional for the employer’’ (Bateman and Snell, 1998, pg.293).
Brazil’s automotive sector employs approximately 1.5 million people, earns more than US$ 107.6
billion annually (including auto parts), and has a significant participation in the GDP (
Anfavea, 2011
).
In accordance with
Appendix A
, the questionnaire used for collecting data had a 5-point Likert
scale to evaluate human resource and environmental management practices.
The research data were collected between October 2010 and March 2011. First, email addresses
and telephone information were collected at the National Automotive Vehicle Component Industry
Union – SINDIPEC
- AS, for 654 automotive sector companies (auto part segment) located in Brazil.
Emails were sent to these companies containing a brief explanation about the study and an
invitation to participate directed to the production manager. The email contained a link to guide the
target respondent directly to the questionnaire hosted in the study’s virtual environment. Phone
calls were also made to increase the return of valid questionnaires, where an attempt was made to
contact the employees responsible for the company’s production area. This was a total return rate of
11.11% (75 valid questionnaires), a number considered adequate compared to the percentages
indicated by
Synodinos, (2003)
. Each filled out questionnaire automatically fed a data spreadsheet
for subsequent statistical processing.
The data analysis process involved the use of statistical procedures with the support of data
spreadsheets, from IBM’s Statistical Package for Social Sciences (Version 19.0) and Smart PLS 2.0.
4. Results
The reduction of data for all variables from the Environmental Management (EM) and Human
Resource Management (HR) constructs was done using Main Component Analysis through the
varimax method. In this first procedure, the main statistical quality indicators were: adjustment of
the sample to each individual factor using the KMO (Kaiser-Meyer-Olkin) test; calculation of
Cronbach’s Alpha for each factor; Bartlett Test of Sphericity; main diagonal of the Anti-Image Matrix;
variable communalities; Eigenvalue equal to or greater than 1.0; and accumulated variance
explained.
In relation to the Human Resources Practices Construct (HR), only one factor was formed,
explaining an approximate accumulated variance of 68.12%, with an Eigenvalue of 2.72 and values
adjusted in the main diagonal of the Anti-Image Matrix (0.71; 0.61; 0.68; 0.63). The KMO test was
0.662, considered adequate, as was the value obtained from the Bartlett Test of Sphericity (141.41)
and Cronbach’s Alpha (0.84). The Human Resources Management Practices Construct (HR) became
comprised by the variables HR1, HR2, HR3 and HR4. Variable HR5 was excluded due to low
communality (0.38) (
Table 2
).
HRM1 HRM2 HRM3 HRM4HR
EM1 EM2 EM3 EM4 EM5 EM6 EM7 EM8EM
HRM5After refining the Human Resource Management Practices Construct (HR) reported above,
variable HR2 – training – was observed as being the one that obtained the highest average among
human resource practices (
Table 3
).
The Pearson coefficient of correlation test was also run (
Table 4
), revealing that all HR1-HR4
variables have significant correlations, underscoring the relation between HR1 (recruiting and
selection) and HR2 (training).
In relation to the Environmental Management Construct (EM), only one factor was formed,
explaining an accumulated variance of approximately 74.38%, with an Eigenvalue of 5.95 and proper
values in the main diagonal of the Anti-image Matrix (0.848; 0.821; 0.925; 0.863; 0.852; 0.951;
0.930; 0.908). The KMO test, which checks sample fitness, was 0.882, considered adequate, as was
the value obtained with the Bartlett Test of Sphericity (636.937) and Cronbach’s Alpha (0.949). All of
the EM Construct variables presented satisfactory values (
Table 5
).
After refining the Environmental Management Construct (EM) reported above, the EM1—
Environmental Policy—variable was seen to obtain the highest average among the environmental
management practices (
Table 6
).
The Pearson coefficient of correlation test was also run (
Table 7
), revealing that all EM1-EM2
variables have significant correlations, underscoring the relation between EM1 (Environmental
Policy) and EM2 (environmental training).
Structural Equation Modeling—Partial Least Squares (SEM-PLS) was adopted with the objective of
testing the validity and reliability of the conceptual model using SmartPLS 2.03 (
Sosik et al., 2009
).
Fig. 2
shows the correlation indicators between the constructs and their variables. Human resource
management is seen to have a positive influence on environmental management, but with low
intensity. According to
Hair et al. (2011)
the obtained relationship between HR and EM is considered
weak because R Square is approximately 0.2.
Table 2
Result of the main component analysis for HR. Variables Load Communalities
HR1 0.85 0.72
HR2 0.86 0.74
HR3 0.87 0.76
HR4 0.70 0.5
Table 3
Average and standard deviation for the HR construct variables. Variables Average Standard deviation
HR1 3.48 1.08
HR2 3.52 1.10
HR3 3.20 1.30
HR4 2.34 1.12
Table 4
Pearson correlation for the HR construct variables.
HR1 HR2 HR3 HR4 HR1 1 – – – HR2 0.71n 1 – – HR3 0.58n 0.72n 1 – HR4 0.49n 0.35n 0.55n 1 n p valueo0.05.
Good quality indicators were achieved for the proposed model for the HR and the EM constructs.
In order to check satisfactory reliability and validity, the Compounded Reliability value should be
greater than 0.7, whereas the Convergent Validity value should be greater than 0.5. Construct
reliability was evaluated using Compounded Reliability. Convergent Validity was analyzed using the
Average Variance Extracted (AVE).
Table 8
shows that all Compounded reliability values are greater
than 0.7 and all Average Variance Extracted values are greater than 0.5 (
Foltz, 2008
). The Cronbach
Alpha coefficients and the communalities are also considered adequate.
One of the ways to guarantee discriminant validity is to check whether the variables really have
higher loads in their factors of origin. This analysis obtained adequate results (
Table 9
).
Aimed at testing model robustness, a bootstrap of 1000 sub-samples was used to estimate the
statistical significance of relationships between proposed variables and constructs (
Fig. 3
).
All of the model’s relationships are statistically valid at a p value lower than or equal to 0.01, as
shown in
Table 10
**
Table 5
Result of the main component analysis for EM. Variables Load Communalities
EM1 0.900 0.811 EM2 0.936 0.875 EM3 0.874 0.764 EM4 0.818 0.669 EM5 0.850 0.723 EM6 0.808 0.653 EM7 0.875 0.766 EM8 0.831 0.690 Table 6
Average and standard deviation for the EM construct variables. Variables Average Standard Deviation
EM1 3.24 1.71 EM2 3.08 1.68 EM3 3.02 1.48 EM4 2.96 1.47 EM5 3.17 1.39 EM6 2.57 1.41 EM7 3.04 1.81 EM8 2.65 1.58 Table 7
Pearson correlation for the EM construct variables.
EM1 EM2 EM3 EM4 EM5 EM6 EM7 EM8
EM1 1 – – – – – – – EM2 0.939n 1 – – – – – – EM3 0.717n 0.781n 1 – – – – – EM4 0.624n 0.660n 0.746n 1 – – – – EM5 0.687n 0.689n 0.783n 0.836n 1 – – – EM6 0.655n 0.678n 0.653n 0.645n 0.659n 1 – – EM7 0.854n 0.899n 0.676n 0.608n 0.605n 0.628n 1 – EM8 0.700n 0.773n 0.666n 0.548n 0.623n 0.684n 0.737n 1 n p valueo0.05
5. Final considerations
This paper verified whether human resource management practices positively relate to the
adoption of environmental management practice at companies in Brazil’s automotive sector. The
proposed objective was achieved through an analysis of the framework and the proposed research
HR1
HR2
HR3
HR4
HR
EM1
EM2
EM3
EM4
EM5
EM6
EM7
EM8
EM
0.813
0.846
0.889
0.736
0.000
0.209
0.885
0.921
0.875
0.842
0.868
0.818
0.859
0.820
0.457
Fig. 2. Tested model.
Table 8
Reliability and validity values for the structural model.
Constructs Average Compounded R Cronbach’s Communality
Variance reliability square alpha
extracted
EM 0.74 9.96 0.20 0.95 0.74
HR 0.67 0.90 0.0 0.84 0.67
Table 9
Crossed loads for evaluating discriminant validity.
EM HR EM1 0.88 0.32 EM2 0.92 0.38 EM3 0.87 0.35 EM4 0.84 0.47 EM5 0.86 0.44 EM6 0.81 0.41 EM7 0.86 0.35 EM8 0.82 0.33 HR1 0.26 0.81 HR2 0.38 0.84 HR3 0.42 0.88 HR4 0.38 0.73
hypotheses, tested based on 75 Brazilian companies. The main results indicated that human resource
management practices tend to statistically significant relate to environmental management at
analyzed companies, through validation of H
1. This relationship can be considered weak, because the
low R Square obtained.
This result has some implications, such as
For entrepreneurs and practitioners, it indicates that companies that already have efficient and
effective human resource management may find it easier to adopt environmental management
practices;
For the state-of-the-art, a Brazilian perspective is added to the field of research about the
relationship between human resources and environmental management.
HR1
HR2
HR3
HR4
HR
EM1
EM2
EM3
EM4
EM5
EM6
EM7
EM8
EM
11.646
16.051
38.244
9.221
25.669
31.050
19.676
21.897
31.915
19.012
20.723
15.655
5.302
Fig. 3. Tested model with bootstrapping of 1000 sub-samplings.
Table 10
Significance of model relationship coefficients.
Relationships Coefficient T test Significance
EMo HR 0.45 5.30 n EM1o EM 0.88 25.66 n EM2o EM 0.92 31.05 n EM3o EM 0.87 19.67 n EM4o EM 0.84 21.90 n EM5o EM 0.86 31.91 n EM6o EM 0.81 19.01 n EM7o EM 0.85 20.72 n EM8o EM 0.82 15.65 n HR1o HR 0.81 11.64 n HR2o HR 0.84 16.05 n HR3o HR 0.89 38.24 n HR4o HR 0.73 9.22 n n p valueo0.05
The results of this study should be considered with some limitations and could be complemented
by new studies with a larger sample, which are not dedicated to a single industrial sector and that
verify other variables/organizational factors that may relate to the adoption of environmental
management practices, such as the firm’s size.
Appendix A. Questionnaire
See Appendix
Table A1
and
Table A2
.
Table A1
Indicate the level of implementation of ‘‘Environmental Management’’ practices listed in the first column at your company. Not implemented Beginning to implement Partially implemented Considerably implemented Completely implemented
EM1 – clear policy of valorizing environmental management
– – – – –
EM2 – environmental training for all employees
– – – – –
EM3–3Rs (reduction, reuse and recycling applied to water, electric energy and paper)
– – – – –
EM4 – development of products with smaller environmental impacts
– – – – –
EM5 – development of production processes with smaller environmental impacts
– – – – –
EM6 – vendor selection based on environmental criteria
– – – – –
EM7 – ISO 14001 or other environmental management system
– – – – –
EM8 – voluntary promotion of information on environmental performance
– – – – –
Table A2
Indicate the alternative that corresponds to the level of quality of human resource practices in your area. Completely disagree Partially disagree Do not agree or disagree Partially agree Completely agree HR1 – the recruiting and selection process is
efficient and effective
– – – – –
HR2 – the training process is efficient and effective
– – – – –
HR3 – the employee performance evaluation system is efficient and effective
– – – – –
HR4 – the reward system (salary and commission) is efficient and effective
– – – – –
HR5 – the benefit system (health, leisure) is efficient and effective
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