Impact of Green Human Resource Management (GHRM) Practices on Customer Satisfaction in Local Pakistani Fashion Industry: The Moderating Role of Customer’s Environmental Awareness

Abstract

Many businesses are adopting a green approach to their operations, not just in production but also in human resource management, as a result of the growing global focus on environmental sustainability. In the local Pakistani fashion industry, which is expanding and is now impacted by consumers who are very concerned about sustainability, this study investigated the effects of green HRM practices on customer satisfaction. In order to establish a green corporate culture that can benefit both internally and externally, Green Human Resource Management (GHRM) incorporates environmental principles into HR operations, including hiring, training, performance reviews, and employee involvement. This study employed a quantitative research design to confirm the impact of GHRM practices on customer satisfaction and to determine whether the aforementioned relationship is moderated by customers' environmental awareness. Data from 380 customers of local fashion brands in the Rawalpindi-Islamabad region were collected through structured questionnaires administered online and in-store. Descriptive, correlation, and regression analyses through SPSS were conducted to test proposed hypotheses. The findings indicated that the effective application of GHRM practices will improve customer satisfaction by enhancing brand image, trust, and perceived ethical responsibility. Further, the findings established that customers who demonstrate a high level of environmental awareness have a higher likelihood of responding to green HR initiatives, thus further strengthening the positive relation between GHRM and satisfaction. This study contributes to both theory and practice. For academics, it extended literature by linking GHRM, studied traditionally for internal organizational outcomes, to consumer perceptions that are external in nature. Practically, the findings provided actionable insights for fashion managers seeking to integrate sustainability into the HR functions of their organizations as a means to achieve competitive advantage, customer loyalty, and enhance corporate reputation. The study would also provide recommendations for policymakers and practitioners to align HR strategies with the broader environmental goals for supporting the transition of Pakistan toward sustainable business practices.