What Are the Human Resources Policies and Practices Most Used by Companies With the Best Esg Ratios in Brazil?

Abstract

Research on the interaction between people management and sustainability in Brazil is recent, although it corresponds to a growing movement. The present study aimed to investigate which human resources policies and practices are most commonly used in Brazilian companies that stand out in ESG (environmental, social and governance) terms, and to find out, among these policies and practices, which would contribute the most to ESG ratings. For this purpose, the 106 Brazilian companies available in the Refinitiv ESG scores system were analyzed for the period from 2015 to 2019, considering the metrics for the category workforce (social dimension). Results showed that most ESG top-tier companies have already incorporated several workforce-related policies; however, the practice still lags behind the policy. Additionally, some metrics were identified as opportunities for improvement, such as the implementation of certain practices regarding the supply chain, the existence of a team focused on health and safety, and the implementation of training and development, as well as diversity and opportunity policies.

Does the Workforce and Sustainability Reports Strengthen the Relationship between Gender Diversity and Sustainability Performance Reporting?

“…Both mediators are significantly influenced by the independent variable, Board Gender Diversity (%) (β = 0.15, p < 0.10 and β = 0.003, p < 0.10), according to the previous research made by Yilmaz et al (2021), Johnston and Samanta (2023) and Schleich (2022) in workforce and Anazonwu et al (2018) and Buallay (2022) in sustainability reports, confirming the hypothesis H2 and H3. Regarding the relationship between board gender diversity and workforce (H2), Huang and Kisgen (2013) highlight that gender diversity in decisionmaking processes can enhance stakeholder engagement and ESG considerations.…”

“…As mentioned above, workforce measures a company's effectiveness towards job satisfaction a healthy and safe workplace, maintaining diversity and equal opportunities, and development opportunities for its workforce (Redinitiv 2020). Several studies have warned about companies' lack of commitment to implementing and deepening mechanisms for workforce involvement in companies' policies (Johnston and Samanta 2023;Schleich 2022;Radu et al 2023). For instance, the study by Sharma et al (2020) shows that workforce racial diversity positively affects a company's CSR performance.…”

“…For instance, the study by Yilmaz et al (2021) found that the existence of gender diversity on the board positively affects the workforce. On the other hand, Schleich (2022) found that many companies with the best ESG performance reporting incorporated workforce policies. Given the reasons set out above, we formulate the following research hypothesis: H4: The workforce improves the relationship between board gender diversity and ESG performance.…”