Green human resource management – A personnel economics perspective

The Stern-Stiglitz Report on carbon pricing emphasizes that environmental policy must not only cope with market failures, but also government and organizational failures. Focusing the latter, this paper investigates how some practices central to human resource management – employee selection training, performance appraisal rewards, discretion empowerment can be jointly deployed direct managerial attention adequately. Using a static multi-task principal-agent model standard monotone comparative statics tools, I derive predictions/prescriptions these should adjust as firm's stakes in sustainability increase. These prescriptions notably include qualifications concerning outsourcing of services implications for public policy.