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Advancing Environmental Management in Manufacturing Firms: The Role of Carbon Footprint Awareness, Digitalization of HRM, and Green Business Strategy in Driving Firm ESG Performance

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Corporate Social Responsibility and Environmental Management

Published online on

Abstract

["Corporate Social Responsibility and Environmental Management, Volume 33, Issue 2, Page 2616-2633, March 2026. ", "\nABSTRACT\nWith global pressure to limit carbon emissions, and drive industry towards sustainable development, organizations are now faced with the twin imperatives of driving carbon literacy, harnessing digitalized human resource management, and inculcating green employee behaviors as key steps towards responsible and competitive manufacturing. In response, organizations around the world are integrating sustainability principles into their operational and human resource systems in order to respond to tighter ESG expectations and stakeholder demands. Despite these global efforts regarding sustainable development, little is known about the extent to which internal awareness, the digitalization of human resource management (DHRM; algorithmic evaluations, behavior tracking, data‐driven decision systems), and the orientation towards sustainability in strategies jointly contribute to environmentally responsible behavior at the employee level. This study examines the impact of carbon footprint awareness (CFA), DHRM practices, and green business strategy (GBS) on green workplace behavior (GWB) and improves firm environmental, social, and governance (ESG) performance. Using a time‐lagged design and data from 319 manufacturing firms collected over three survey waves, the results show that both CFA and DHRM have a significant influence on GWB, which, in turn, has a positive impact on ESGP. Moreover, GBS enhances the influence of CFA and DHRM on GWB by highlighting that it serves as a strategic enabler, aligning the behavior of employees with sustainability objectives. This research contributes to the existing knowledge in the field of sustainable human resource management by analyzing the role of both CFA and DHRM in developing GWB to enhance the ESG performance (ESGP) of firms in the manufacturing sector. Managerial implications are provided for organizations that are considering integrating sustainability into workforce systems and organizational practices.\n"]