Global Sustainable HRM Practices

One of the features of globalization in the last three decades has been the transfer of manufacturing and other work activities from developed countries to Asian and Eastern European countries where labour costs are much lower. Multinational enterprises (MNEs) are the engine for globalization and hence this chapter discusses how global sustainable HRM could be effectively transferred to subsidiaries by MNEs. Global sustainable HRM focuses on the requirement that multinational enterprise (MNEs) to ensure positive social, human, financial and ecological outcomes for key stakeholders in both home and host countries. This chapter is therefore concerned with how sustainable HRM can be understood and implemented in varied geographical regions where multi-national enterprises (MNEs) and multi-national corporations (MNCs) operate with the primary objective of the subsidiary operations is to reduce labour costs. To achieve the aim of this chapter, initially the nature of globalization is discussed. Secondly, the need for global sustainable HRM is discussed based on the limitations of strategic HRM in being able to satisfy stakeholders’ expectations in the global context. Thirdly, global sustainable HRM is explained using the values of global ethics which inform corporate social responsibility (CSR). The universal values of global sustainable HRM include corporate governance, environmentalism, social responsibility, human rights and organizational disclosure of social and environmental outcomes to stakeholders. Finally, the transfer of global sustainable HRM by MNEs/MNCs to their subsidiaries in diverse geographical locations is explained. A hybrid sustainable HRM system which includes two sets of universal values. One set of values focus on national culturally congruent universal values, and the other set is about divergent values of global sustainable HRM is proposed as a means of effectively transferring and implementing global HRM practices by MNEs to subsidiaries in other host countries to achieve economic, social and environment outcomes of corporate sustainability.