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Promoting Climate Change Mitigation and Resilience Strategies Through Human Resource Management: Performance Management and Rewards for Sustainability
Abstract
In line with sustainable development goals principles, the long-term value creation potential of businesses has started to be measured not only by economic outputs but also by environmental and social impacts (Elkington, 1997). Accordingly, it is necessary to restructure performance management and reward systems in order for organizations to effectively implement their sustainability strategies. Aligning performance management processes with sustainability goals is reported to increase employee motivation and organizational commitment, (Warhurst, 2002). In this context, rewarding sustainability-oriented performance is not limited to financial incentives, but is also supported through intangible rewards. In order for these systems to be implemented effectively, it is necessary to integrate strategic sustainability goals with corporate vision and actions, measure sustainable performance indicators, create an organizational culture conducive to stakeholder engagement, base leadership activities on sustainability principles, and establish a fair reward system.
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