Do Sustainable Human Resource Practices Drive Sustainable Performance? Evidence from Indonesian Cement Companies

Abstract

This study aims to examine the effect of sustainable human resource practices, namely occupational health and safety (OHS), employee training (TR), and industrial relations (IR), on sustainability performance in Indonesian cement companies. 

This study employs a quantitative approach using panel data from five cement companies listed on the Indonesia Stock Exchange during 2021–2024. The variables are measured based on Global Reporting Initiative (GRI) indicators using content analysis and analyzed using panel regression.

The results show that occupational health and safety and industrial relations have a positive and significant effect on sustainability performance, while employee training has a positive but not significant effect.

The study is limited by the small sample size (five companies) and the short observation period (2021-2024), which may not fully capture long-term effects.

The findings highlight the importance of strengthening workplace safety and labor relations as key drivers of sustainability performance.

This study contributes by emphasizing the role of internal human resource practices in sustainability performance using GRI-based measurement in a sector-specific context.