A theoretical framework for managing ESG-HRM paradoxes: balancing organizational tensions for the common good

In responding to global ecological and social challenges, companies have been attempting to report organizational performance on Environmental, Social, and Governance (ESG) aspects. However, integrating ESG aspects into HRM practices brings tensions and complexities for HR managers who must align HRM with not only organizational goals but broader societal obligations. In the current paper, we adopt a paradox perspective to unravel the complexities of integrating ESG into HRM. We use ESG as an analytical framework to address HRM paradoxical tensions arising from pursuing multiple, often conflicting, agendas. By systematically reviewing the HRM empirical literature, we provide novel insights on paradoxical tensions across the nature, process, and outcomes of HRM with regard to ESG aspects. We argue for a ‘both/and’ approach. The approach helps HR managers balance the needs of diverse stakeholders (including employee, society and the environment), in order to align their HRM practices with values like sustainability, equality, and social inclusion for the common good. By proposing a coherent paradoxical framework, our study contributes to the development of a dynamic view of ‘fit’ and the alignment of fragmented HRM theories, HR practices and outcomes. By doing so, we aim to support organizations in achieving business success and making a positive social and environmental impact, therefore advancing HRM as a viable instrument for the common good.