2. Literature Review and Hypothesis Development
HRM strategies are goals that help organizations further the aims of the SDGs by aligning their economic, social, and environmental dimensions with their human resource policies and practices. According to
Z. Lu et al. (
2019), sustainable HRM refers to the utilization of HR tools and system processes to integrate sustainability strategies into organizations, thereby enhancing their superior sustainable performance through their employees. By aligning its HR practices with environmental sustainability objectives, GHRM, an effective HRM, can support environmental management in firms (
Napathorn, 2021). Likewise, training in HR and HRM is also critical for the thriving entrepreneurial agendas that underline sustainability and development toward achieving the SDGs. Reframing HR strategies and practices enables organizations to contribute to the SDGs by understanding the real-life impacts of HR practices on global challenges (
Aust, 2024). Organizations plan to achieve financial, social, and ecological goals while ensuring their long-term sustainability (
Yao et al., 2021). GHRM practices within organizations can create synergies in achieving goals related to environmental sustainability within an organization (
Sathasivam et al., 2020). The concept of sustainable HRM fits with the objectives of sustainable development; it integrates economic, social, and ecological goals (
Kinowska, 2021).
GHRM also integrates HRM with the incorporation of sustainability issues and emphasizes sustainable HRM practices focusing on company goals, people, processes, and strategic orientation (
Aslanertik & Çolak, 2021). The GHRM practices focus on transforming employees into environmentally conscious individuals who significantly contribute to environmental sustainability. Socially responsible HRM practices can legitimize the company’s activities with stakeholders and contribute to company social responsibility efforts (
Berber et al., 2019;
Sapna & Gupta, 2021). Strategic HRM thus enlightens organizations on how to formulate dynamic strategies for achieving competitive advantages through necessary employee-based resources (
Tawfig & Kamarudi, 2022). The SDGs emphasize conservation and sustainable utilization of marine resources, job creation, hunger elimination, and gender equality in line with the importance of fisheries reform and sustainable resource management (
Kaczan & Patil, 2020;
Awamleh et al., 2025b). Organizations are increasingly focusing on sustainable operations that align with the triple bottom line concept of sustainability, which encompasses social, environmental, and economic sustainability (
Bastas & Liyanage, 2021). Sustainable development, embracing the social, environmental, and economic pillars, is crucial for attaining the SDGs and the growing regional economy (
Haeril & Purnomo, 2019).
Although a growing stream shows that green HRM can lift environmental and broader sustainability outcomes, often via pro-environmental behaviors and green supply-chain practices (e.g.,
Carballo-Penela et al., 2023), other scholars argue that this link remains indirect, fragmented, and not guaranteed. Conceptual critiques caution that mainstream HRM logics (efficiency, short-term performance) may be misaligned with the SDGs’ societal remit and thus produce implementation gaps (
Brewster & Brookes, 2024). Recent systematic reviews also report heterogeneous effects and context dependence across sectors and countries, signaling publication bias and construct/measurement variability (
Miah et al., 2024;
Campos-García et al., 2024).
HRM plays a crucial role in comprehensive regional sustainable development by linking its human capital plans with strategies to respond to the urgent needs of regional development extensively.
Alakbarov et al. (
2020) expect HRM to play a leading role in enhancing economic sustainability through improvements in organizational structure, human resource evaluation, and goal structuring for sustainable development. HRM strategies influence SDGs by aligning HR practices with the economic, social, and environmental dimensions (
Makedon et al., 2019). The implication is that business organizations can only engage in sustainability practices and contribute to the attainment of the SDGs at all levels if they progress to the scope of GHRM and strategic HRM. This implies that incorporating sustainability into HRM practices benefits both the firm and the broader social and environmental concerns outlined in the SDGs. Simply by applying and aligning HR practices with sustainability elements, firms can significantly contribute to sustainable development and address global issues. Therefore, the hypotheses are as follows:
H1. HRM Strategies have a positive impact on Sustainable Development Goals.
Furthermore, numerous other research studies have confirmed the importance of HRM strategies in enhancing employees’ health. A recent study by
Y. Lu et al. (
2023) found that the sustainability of HRM practices has a positive effect on employee resilience and consequently their work engagement. This highlights the significance of HRM practices in enhancing employees’ coping strategies within the workplace. In a similar vein,
Luu (
2019) has highlighted that employees experience higher levels of happiness when they exceed legal requirements and actively contribute to their work and career development. It suggests that discretionary HR may benefit employee well-being. In addition,
Panya (
2023) showed how appropriate HRM strategies could improve employee well-being in terms of satisfaction, productivity, motivation, health, and safety. HRM practices can help create a conducive working environment that will benefit the employees’ welfare by emphasizing competitive, sustained organizational benefits and the long-term survival of organizations.
Lombardi et al. (
2020) extracted the link between corporate social responsibility and HRM, which shows that incorporating CSR’s ethical principles into HRM practices will mean a more defined focus on the welfare of workers. This integration of responsible and sustainable practices can significantly enhance the overall well-being of employees.
Mutual gain studies report that high-performance work systems (HPWSs) can enhance well-being (e.g., job satisfaction, vigor) when they increase resources and fairness (
Dorta-Afonso et al., 2023;
Shi et al., 2024). Yet a robust counter-literature finds work intensification and strain risks, linking HPWS to burnout and lower health, especially under high demands or weak health-oriented leadership (
Mauno et al., 2023;
Ogbonnaya & Messersmith, 2019). Moreover, longitudinal and JD-R–based studies sometimes fail to find the predicted demand-driven harm or even show null/positive effects when resources dominate, underscoring design sensitivity (
Kloutsiniotis & Mihail, 2020). In short, HRM’s effect on well-being is conditional on job demands/resources, leadership “staff care,” and implementation strength.
In a related note,
He et al. (
2019) identified the interaction effects of HRM and responsible leadership on the well-being of employees in the hospitality sector. Their findings proved the efficiency of HRM practices and leadership styles for eliciting better employee well-being along all its dimensions. Lastly,
Hameed et al. (
2023) further detailed HRM’s mutual gain model that considers HRM practices’ capacity to raise employee well-being and performance simultaneously. Therefore, the view heavily emphasizes the inseparable relationship between employee well-being and organizational performance, achieving this through the implementation of integrated HRM strategies. In addition, studies like
Hussein et al. (
2023) further support the views of proponents by showing that there is a positive influence of human resource management practices on service quality, employee service behavior, and satisfaction. Implementing effective HRM strategies can improve customer satisfaction and employee well-being. Furthermore, (
Xiao & Cooke, 2022), have proven that HRM attributions along with system consistency jointly influence healthiness levels among employees. They emphasized that a positive and consistent HRM system would foster the happiness of employees and decrease cases of health problems. The reviewed literature provides ample evidence of the relationship between HRM strategies and employee well-being. In this context, sustainable HRM practices serve as a comprehensive strategy for investing in the growth and well-being of employees, integrating CSR principles into the HRM function of an organization, and ultimately fostering a supportive work environment for employees through appropriate leadership. Consequently, we propose the following hypotheses:
H2. HRM Strategies have a positive impact on Employee Well-being.
HRM strategies directly affect the nature of corporate governance and are beneficial, at the same time, to organizational performance. Numerous research studies have recognized the significance of HRM practices in corporate governance and overall business success.
Zhou et al. (
2019) reiterate that high-performance work systems, direct voice mechanisms, and corporate governance participation ignite more excellent and innovative performance among organizations. This means that, with their strategic fit, HRM practices, employee participation, and corporate governance can lead to superior organizational performance. Moreover,
Battour et al. (
2021) highlight that HRM strategies play a prime role in bridging the gap between the organization and the employee, whereby the effective practice of HRM is essential to sustainable competitive advantage. This, however, underscores the significance of HRM in human resources and strategic agility and success in this day and age.
Sarwar et al. (
2022) further reinforce this by observing that HRM positively impacts corporate social responsibility (CSR) and enhances performance in large hotels across both lower-income and higher-income economies. The HRM strategy embeds CSR initiatives that sustainably enhance employee performance, organizational citizenship behavior, and employee engagement. All of these things eventually add up to the success of the organization.
Evidence that HRM strengthens governance, via ethics-oriented HRM systems, whistleblowing capability, and ethics training, exists, but it is fragmented and far from conclusive. A systematic review of HRM–CG integration finds limited direct empirical tests and substantial conceptual dispersion (
Lima & Galleli, 2021). Empirical work on organizational determinants of whistleblowing suggests HR/ethical climate design matters, but effects hinge on institutional context and system design (
Previtali & Cerchiello, 2022). At the same time, policy–practice decoupling in governance (e.g., sustainability targets in pay not translating into action; “greenhushing”) shows formal HRM/CG policies can be symbolic, diluting observed effects on actual governance quality.
On the other hand, sustainable HRM, a critical area in HRM, emphasizes the importance of aligning HRM strategies with environmental, social, and governance (ESG) considerations. According to
Makhecha and Mariappanadar’s (
2023) findings, organizations aim to achieve their ESG sustainability goals through sustainable HRM practices, with HRM playing a pivotal role in ensuring sustainable outcomes. This suggests that incorporating sustainable HRM policies can lead to better management and improved ESG performance. Together, these three studies show that HRM strategies are the locus of governance in a company. Businesses can increase performance, innovate, and achieve better success levels by incorporating HRM practices in line with the organization’s goals, integrating CSR initiatives, and encouraging sustainability practices. The fact that HRM is strategic concerning corporate governance and that it helps ensure sustainable results further emphasizes the need for effective HRM strategies in the contemporary, dynamic business environment. We thus propose the following hypotheses based on the aforementioned facts:
H3. HRM Strategies have a positive impact on Corporate Governance.
Corporate governance refers to the set of rules, practices, and processes that guide and control a company. Recently, there has been a growing focus on the system as a crucial factor in achieving the SDGs. Strong internal corporate governance aligns corporate strategies with SDGs toward the best interests of stakeholders and is favorably linked to SDG fulfillment (
Martínez-Ferrero & García-Meca, 2020). Such alignment will confirm whether businesses are able to build a sustainable advantage and make a significant contribution to society and environmental well-being. In this way, effective corporate governance is of immense importance not only to a single business entity but also to realizing national and global goals, including the SDGs (
Ahmed & Anifowose, 2023). Diversity Corporate decision-making bodies have established diversity to shape a company’s perspective on the necessary approach to the SDGs and CSR (
Vacca et al., 2020). Furthermore, promoting diversity in corporate leadership will ensure inclusive decision-making processes with all of the perspectives and priorities that stakeholders and the general public hold, as supported by marketing studies (
Afaishat et al., 2025). It is therefore essential for governments and policymakers to take an active interest in and support the kinds of initiatives that will imbue higher corporate structures with greater gender diversity.
In addition to diversity, the social responsibility and innovation aspects of corporate governance significantly contribute to the achievement of the SDGs. Social responsibility and innovation are highly qualified factors that assist organizations in adopting the unattainable but useful SDGs (
Helfaya & Aboud, 2023). This is also a holistic approach to corporate governance, showing the interconnectivity of economic, social, and environmental factors in attaining the objectives for sustainable development. At the heart of the relationship between corporate governance and green innovation is the urge for assurance over environmental efficiency and sustainability. Corporate governance frameworks provide structure and incentives for firms to embed green innovation into their day-to-day operations and ultimately adopt environmentally friendly practices (
Makpotche, 2024). Companies can facilitate their competitiveness and, at the same time, contribute to the goal of sustainability in general.
Furthermore, incorporating the principles of sustainable development into corporate governance practices contributes significantly to a company’s long-term economic growth and stability. Companies that integrate the SDGs into their governance framework are better equipped to handle change, manage risks, and seize opportunities in sustainability challenges (
Lashitew, 2021). Such an alignment of corporate governance with sustainability objectives leads to more responsive and responsible corporate practices. Furthermore, sustainable corporate governance emphasizes the digital economy, addressing issues like employee welfare, environmental consciousness, and sustenance practices in promoting technological innovation and economic sustainability (
Cai et al., 2022). Sustainable corporate governance principles guide companies to apply digital technologies for positive impact, innovation, and long-term growth. Such elements refer to the integration of digital economy components with sustainable governance practices, thereby increasing the impetus to make changes in emerging technological landscapes while protecting the environment and social causes. Corporate governance is a critical process for achieving the SDGs by aligning corporate strategies with sustainable objectives, fostering diversity, social responsibility, innovation, green innovation, and incorporating elements of the digital economy. On the other hand, companies that support sound corporate governance practices are better positioned to create added value for sustainable development, address environmental and social challenges, and ensure long-term economic growth, all while adhering to the principles of accountability and responsibility. Therefore, the following hypothesis is proposed:
H4. Corporate Governance has a positive impact on Sustainable Development Goals.
Indeed, employee well-being is crucial to SDG achievement. Hernández et al. predict that, in 2021, issues related to internal practices for employee well-being and engagement will coexist with sustainable management. All entities should integrate these elements into their vision of employee welfare, taking into account the broader context of sustainability initiatives. Furthermore, it is important to reinforce this perspective by highlighting the positive connections between certain SDGs and employee well-being. This suggests that certain goals have the potential to improve well-being, thereby offsetting any potential trade-offs with other SDGs (
Neve & Sachs, 2020). Moreover,
Rajashekar and Jain (
2023) argue that employers play a crucial role in ensuring the SDGs by providing adequate health and well-being initiatives for their employees. This supports the idea that employee well-being matters both individually and globally for sustainability. This also explains in more detail how employees’ well-being is multidimensional, encompassing a wide range of aspects, such as quality of life, work environment, and psychological well-being, all of which can change in response to HRM practices (
He et al., 2019). This underscores that organizational strategies and leadership play an essential role in keeping the workforce’s well-being in place, which positively influences performance and the overall benefits of sustainability initiatives.
Besides,
Kim et al. (
2021) further demonstrate behavioral influences over crowdfunding SDG initiatives by emphasizing those personality traits, such as agreeableness, openness to experience, and conscientiousness, that drive support for SDGs. This implies that personal characteristics have an impact on the collaboration of sustainability goals, including those related to employee well-being. Indeed,
Dwyer (
2022) states that there is a strong association between self-reported measures of well-being and progress in achieving most of the SDGs. In addition, the critical areas noted for well-being include employment, health, education, and social relationships. Further, according to
Raman (
2023), management research has recently focused on employee well-being initiatives, with organizational practices aligned to the SDGs gaining importance. Similarly,
Daher-Nashif and Bawadi (
2020), have critically evaluated well-being in the context of the SDGs, highlighting its role in demonstrating strategies that support the achievement of certain health targets, emphasizing gender, health, and sustainable development.
Monteiro and Joseph (
2022) have demonstrated the enhancement of productivity and performance, the advantages of real activities, and the implementation of policies promoting well-being.
Mustika’s (
2023) study findings show that employee well-being acts as a mediator between job performance and factors related to it, actually pointing to the pivotal role of well-being in driving employee outcomes.
According to
Klement and Terlau (
2022), the SDGs focus on education for sustainable development (ESD) and human well-being, and there is an emphasis on the strong linkage between education, well-being, and sustainable development. Furthermore,
Wieneke et al. (
2019) discuss the impact that champions of well-being have on engagement and satisfaction, providing evidence that well-being campaigns can alter team dynamics and the overall atmosphere at work. Previous studies underline the role that employee well-being plays in advancing the SDGs. Organizations committed to well-being initiatives advance individual outcomes about health and productivity, which eventually contribute to broader sustainability objectives. Organizations must clearly consider the linkage between well-being, organizational practices, and global sustainability efforts as the cornerstone of sustainable development. This prompts us to formulate the following hypotheses:
H5. Employee Well-being has a positive impact on Sustainable Development Goals.
Several studies have examined the complex links between sustainable HRM practices, the well-being of employees, and organizational outcomes. Scholars (
Davidescu et al., 2020;
Y. Lu et al., 2023) advocate for the sustainable transformation of HRM to foster employee development, ensure flexible work arrangements, and enhance job satisfaction and organizational performance. Studies further elaborate that sustainable HRM practices enhance employee well-being and performance (
Y. Lu et al., 2023;
Tawalbeh et al., 2025) and also identify the role of green behavior as a mediator between green HRM practices and well-being (
Gyensare et al., 2024). Together, the studies underscore the critical role of employee well-being as a mediator in the paradigm of sustainable HRM practices and organizational success. Furthermore, the literature emphasizes the impact of a variety of HRM strategies on employee well-being and organizational outcomes.
Chaudhary (
2019) emphasizes the importance of green HRM practices in achieving environmental goals and fostering behavior that enhances organizational ecological performance.
Panya (
2023) emphasizes that proper HRM strategies should have positive impacts on employees in terms of well-being, satisfaction, productivity, and motivation for organizational sustainability. Furthermore, it proposes HRM dimensions such as work–life balance initiatives, flexible working hours, broad training programs, and inclusive leadership to create a flourishing workforce during the post-pandemic period (
Al Shibly et al., 2024). The aforementioned research has concentrated on the impact of HRM practices on employee well-being and their role in fostering sustainable organizational development.
Furthermore, the interaction between HRM practices, employee well-being, and organizational performance is highly dynamic and complex.
Hamadamin and Atan (
2019) said that strategic HRM had a vital impact on sustainable competitive advantage by mediating the relationship between human capital development and employee commitment. The study concentrates on how organizational innovation acts as a mediator in the connection between HRM practices and sustainable development (
Abugabel, 2023;
Hamadamin & Atan, 2019). Moreover,
Villajos et al. (
2019) re-emphasized that idiosyncratic deals are mediators of enhancement to creative performance through HRM practices concerned with the promotion of eudaimonic well-being. These studies underscore the fact that, quite often, HRM interventions put several faces on both employee well-being and organizational sustainability.
Leadership and organizational trust are critical determinants in shaping sustainable HRM practices and fostering employee well-being, according to the literature.
Shaikh (
2023) and
He et al. (
2019) contend that leadership plays a crucial role in achieving organizational sustainability. They emphasize the importance of green HRM practices in achieving environmental goals, emphasizing the role of employee well-being in mediating the interaction effects of HRM and responsible leadership on hospitality performance. They continue to explain the role of sustainable HRM systems in enhancing affective commitment through organizational trust (
Ferreira-Oliveira et al., 2020). Typically, these studies provide evidence on leadership, faith, and organizational culture at the heart of improving sustainable HRM practices and employee well-being. The synthesis of the different articles articulates the link between HRM strategies, employee well-being, and the SDGs. There is a need for sustainable HRM practices in organizations that enhance employees’ well-being and create a mediating effect between HRM strategies and organizational outcomes through effective leadership, trust, and organizational culture. Effective HRM interventions in this regard will help organizations create environments that foster employees’ well-being and, at the same time, work in line with the SDGs. We then propose the following hypothesis:
H6. Employee Well-being has a mediation role between HRM Strategies and Sustainable Development Goals.
HRM practices should also be consistent with the environmental management systems for an organization to meet sustainability goals (
Chaudhary, 2019). Studies demonstrate that CSR-oriented boards can positively impact TBL performance and aid in the internal corporate governance process, thereby promoting the SDGs through the enhancement of indicators (
Zubeltzu-Jaka, 2023). Besides, studies on sustainable business development indicate the critical role of corporate governance, social responsibility, and innovation in achieving the set goals for business development in the long term (
Helfaya & Aboud, 2023). A focus on corporate climate change disclosure reveals corporate governance’s mediational mechanisms in the process of influencing HRM strategies for sustainable development. Besides, establishing CSR departments and sustainability committees to respond to the environmental governance practices of corporations mediates the strategic response to climate change disclosure (
Khaddam et al., 2023). Subsequently, it influences SDG performance and sustainable practices (
Mehedi et al., 2023). It also emphasizes the moderating role of corporate governance in climate change disclosure and SDGs, which arises from the influence of board members and governance structures on corporate strategy planning (
Toukabri & Youssef, 2022).
Furthermore, it established the interplay between corporate environmental ethics, HRM, and sustainable development, indicating how sustainable HRM moderates the effects of corporate ecological ethics on green creativity by promoting environmental commitment (
Song et al., 2023). Several pieces of evidence also indicate that board gender diversity could enhance firm performance through the mediating role of sustainability disclosure; hence, sound corporate governance practices could lead to increased sustainability transparency (
Alodat et al., 2023). Another framework on ESG, identified by
Dong (
2023), is a crucial tool that facilitates the integration of governance factors at the corporation’s level of sustainable development. Organizations can link leadership to organizational commitment to sustainability, emphasizing green HRM practices and green knowledge sharing. Green HRM practices mediate organizational commitment to sustainability, whereas green knowledge sharing moderates the relationship. Exploring their role can influence organizational commitment to sustainability (
Shaikh, 2023). This defines the central role of HRM in driving sustainable practices within an organization.
Introducing human resource management to the organization governance structure will lead to improved achievement of corporate goals on sustainable development objectives. In
Azegele’s (
2021) opinion, without HRM practices, the linkage between corporate governance and organizational performance cannot be achieved, meaning HRM strategies should fit into the governance structures in place. The intermediary role of CSR in the green HRM practices of small and medium-sized enterprises, especially in the lower-income country context, also boosts the role of CSR in sustainable HRM practices.
Wen et al. (
2021) highlight the favorable resource conditions of HRM in formulating effective strategies amidst the current volatile, uncertain, complex, and ambiguous global scenario. Since HRM is a workforce activity that enables the ideation of organizational blueprints that aim for innovation and strategic responsiveness, it can enhance the competitive edge of the organization (
Hamid, 2019). Thus, the large task of eliminating variability—through standardizing production processes, redesigning systems, and automating processes—becomes HRM’s critical task. The conceptual model under consideration emphasizes the importance of incorporating corporate governance into organizational advancement toward the SDGs. This, in turn, is believed to enhance the overall performance of the organization.
H7. Corporate Governance has a mediation role between HRM Strategies and Sustainable Development Goals.
5. Results
This study has employed the structural equation modeling approach to measure the relationship among HRM strategies, employee well-being, corporate governance, and the SDGs. The model fit indices, in addition to the CFA measurements, offer a solid model for constructing these relationships. The construct assessments’ model fit results demonstrate a robust fit of the SEM using AMOS. Each of the indices has met or exceeded the recommended thresholds, demonstrating the robustness and reliability of the model (refer to
Table 2). The calculated CMIN/DF is 2.632, considerably less than the strict threshold of 3 and comfortably inside the more liberal threshold of 5 (
Marsh & Hocevar, 1985). This suggests that the model shows an acceptable degree of parsimony and is not a case of overfitting to the data. However, the GFI reports a value of 0.895. Although it is just under the more conservative threshold of 0.90, it comes in over the acceptable threshold of 0.85 (
Jöreskog & Sörbom, 1984). That is to say, the model fits the sample data to an acceptable degree. The NFI is 0.876, a satisfactory fit above the threshold of 0.85 (
Bentler & Bonett, 1980). This indicates a model in which the variance–covariance matrix explains the data well compared to the null model.
Furthermore, the CFI value of 0.948 exceeds the recommended cutoff of 0.90 (
Hu & Bentler, 1999), indicating a tight fit of the model and significantly contributing to the explanation of the data. The AGFI value of 0.854 meets the lowest acceptable 0.85 threshold (
Bollen, 1989). This adjusted index punishes complexity, yet it still concludes that the model is parsimonious and well-specified. The TLI value of 0.923 exceeds the threshold of 0.90, further explaining the model’s excellent fit (
Tucker & Lewis, 1973). This suggests that the model performs fairly when compared to the more restrictive baseline model. The RMSEA is equal to 0.064, which lies well below the threshold of 0.08 (
Browne & Cudeck, 1993). This indicates a close fit of the model to the data, with a minor residual misfit. Taken together, the model fit indices indicate that the SEM-AMOS model suits the data well and is both parsimonious and informative. Each index is greater than or equal to the recommended cut-off values, ensuring the reliability and validity of the model. Results show consistency with prior studies that encourage using multiple fit indices in assessing model adequacy comprehensively (
Kline, 2015).
Table 3’s confirmatory factor analysis measures provide a detailed view of the constructs used in the current study, with a focus on convergent validity and construct reliability. The constructs applied herein are HRM strategies, employee well-being, corporate governance, and SDGs. The analysis contains loaded values (AVE, Cronbach’s alpha, and CR) for each construct to measure the adequacy and robustness of the measuring model. When we can demonstrate that items expected to measure shared variance actually measure shared variance, we establish convergent validity. We empirically check this through the average variance explained, which measures the average variance a construct’s indicators explain in relation to the variance from a measurement error. The AVE for HRM strategies is 0.560, indicating that the construct explains over 50% of the variance, surpassing the acceptable threshold of 0.50 (
S. F. AlFraihat et al., 2025). This means that the measures for HRM strategies are closely related. The AVE of 0.504 also meets the minimally accepted threshold for convergent validity in the context of employee well-being. The AVE for corporate governance is 0.545, which is above the threshold, indicating excellent convergent validity. The SDG construct has the highest AVE of the lot, at 0.622, just as it evidences strong convergent validity.
We design reliability analysis using Cronbach’s alpha and composite reliability (CR). The general acceptance level for Cronbach’s alpha is more than 0.70, which indicates that the items measure internal consistency well (
Nunnally & Bernstein, 1994;
S. F. A. AlFraihat et al., 2025). Constructive measures with a composite reliability above 0.70 suggest that the constructed items are reliable (
Hair et al., 2010). For HRM strategies, Cronbach’s alpha was at 0.865, while the CR was at 0.883, both above the 0.70 threshold, making them reliable. Organizational Actualizations: Cronbach’s Alpha 0.827; CR 0.835. The values are more significant than the recommended ones and suggest that the measurements are reliable. The construct Corporate Governance records a Cronbach’s alpha of 0.871 and a CR of 0.877, both of which are at adequate levels of reliability. The construct SDGs yields excellent results in this regard: Cronbach’s alpha is 0.898, and CR is 0.907.
Table 4 evaluates and presents discriminant validity by examining a construct in relation to the other constructs investigated in the research. It is crucial to interpret discriminant validity so that each study’s construct highlights the uniqueness of the data, rather than sharing significant similarities with other constructs. We usually check this by comparing the square root of AVE for each construct with the inner construct correlations. We generally check this by comparing the square root of AVE for each construct with the inter-construct correlations. The diagonal displays the square root of the AVE in bold form, while the off-diagonal elements reveal the correlations between the constructs.
Fornell and Larcker’s (
1981) discriminant validity necessitates that the AVE square root be greater than the correlation of any other construct.
For corporate governance, the square root of the AVE is 0.738, which is higher than its correlation with HRM strategies (0.733), employee well-being (0.601), and SDGs (0.717). As a result, corporate governance exhibits discriminatory validity, as its indicators are more relevant than those of other constructs. Furthermore, the square root of AVE for the HRM strategies is 0.748, a value that surpasses its correlation with corporate governance at 0.733, employee well-being at 0.557, and the SDGs at 0.595. As such, even the HRM strategies have discriminant validity. For employee well-being, the square root of AVE equates to 0.710, greater than that of the corporate governance variable, equating to 0.601, the HRM strategies variable, equating to 0.557, and the SDGs variable, equating to 0.589. It implies that employee well-being has discriminatory validity. Lastly, the SDGs’ square root value is 0.789, which is higher than the values of the SDGs’ correlations with corporate governance (0.717), HRM strategies (0.595), and employee well-being (0.589). This indicates the validity of the SDGs as a means of differentiation.
The squared multiple correlations (R
2) for the dependent variables in the default model are shown in
Figure 2 and
Table 5. This shows how much of the variance in the corresponding construct can be explained by the predictors. The model explains 64% of the variance in corporate governance, with a coefficient of R = 0.640. Therefore, this high percentage suggests that the independent variables on corporate governance should have strong explanatory power. The model could account for about 39.1% of the variance in employee well-being, with an R-squared value of 0.391. This is adequate; however, it still shows a very substantial effect of the predictors on employee well-being. The highest R
2 value is 0.728, which means that the model explains 72.8% of the variance of the SDGs construct and shows powerful predictive capability. Overall, these R
2 values reflect the model’s capacity to explain the variability in the dependent constructs, and they are very high for corporate governance and SDGs. Similarly, the R-value for employee well-being is moderately high.
Table 6 below represents the direct hypotheses and results of the study about the significance of the relationship between HRM strategies, corporate governance, employee well-being, and the SDGs. The results all point to a few significant findings. First, HRM strategies negatively relate to SDGs (β = −0.133, S.E. = 0.049, T-Value = −2.699,
p = 0.007): a significant result, but an inverse relationship at the 0.01 level. It thus appears that, while HRM strategies strengthen, they tend to influence SDG negatively. On the other hand, HRM strategies have a significantly strong positive impact on employee well-being (β = 0.618, S.E. = 0.038, T-Value = 16.427,
p < 0.001) and corporate governance (β = 0.858, S.E. = 0.031, T-Value = 27.359,
p < 0.001), both of which are highly important relationships. Therefore, HRM strategies that work are crucial to improving employee well-being and enhancing corporate governance.
Furthermore, corporate governance significantly positively influences SDGs (β = 0.841, S.E. = 0.041, T-Value = 20.34, p < 0.001), meaning that excellent governance significantly propels the achievement of SDGs. Lastly, employee well-being positively influences the SDGs (β = 0.176, S.E. = 0.034, T-Value = 5.121, p < 0.001); therefore, high employee well-being propels the attainment of the SDGs. Overall, the findings are proof that HRM strategies, corporate governance, and employee well-being sustain a close positive relationship with the attainment of the SDGs. While HRM strategies positively affect employee well-being and corporate governance, corporate governance and employee well-being both contribute positively to the SDGs, emphasizing well-being and governance to achieve sustainability objectives.
Table 7 presents the mediation role estimation results, evaluated using bootstrapping with 500 samples and a 95% confidence interval. The analysis confirms the mediation roles of employee well-being and corporate governance in the relationships between HRM strategies and the SDGs. The hypothesis is that employee well-being acts as a go-between for HRM strategies and the SDGs. The direct effect (β = 0.131) and the indirect effect (0.002) are both within the confidence interval bounds (0.058 to 0.289), which means that there is a significant mediation effect. This suggests that HRM strategies positively influence employee well-being, which in turn enhances the SDGs. In the same way, the direct effect (β = 0.126) and the indirect effect (0.004) for the idea that corporate governance acts as a go-between for HRM strategies and SDGs are both within the confidence interval bounds (0.084 to 0.247), showing that there is a strong mediation effect. This demonstrates that HRM strategies positively influence corporate governance, which subsequently contributes to the SDGs. The acceptance of both hypotheses underscores the crucial role of employee well-being and corporate governance as mediators in the relationship between HRM strategies and SDGs. The results suggest that organizations should encourage and enshrine practices that promote employee well-being and governance to ensure effective HRM strategies lead to improved sustainable development outcomes.