Integrating sustainable development goals into HRM in emerging markets: an empirical investigation of Indian and Chinese banks

Purpose - This study explores the role of human resource management (HRM) practices in advancing sustainable development goals (SDGs) within emerging markets. Specifically, we examine how HRM practices in financial institutions in the emerging markets of India and China promote SDGs 8 (decent work and economic growth), 10 (reduced inequalities) and 13 (climate action). We also propose a framework integrating these key SDG goals with core HRM functions. Design/methodology/approach - Secondary data analysis was employed using data from sustainability reports of the top five Indian and Chinese banks listed in Forbes – the Global (2000) ranking for 2022–2023. These sustainability reports were analysed based on their reporting of indicators from the Global Reporting Initiative GRI 400 series, aligned with the SDGs 8, 10 and 13. Findings - The result of the comparative analysis indicates that both Indian and Chinese banks use HRM practices of recruitment and selection, rewards and payments, workplace health and safety, and training and development to meet SDGs 8 (decent work and economic growth), 10 (reduced inequalities) and 13 (climate action). Regarding the reporting and disclosure of HRM practices in diversity, equity and inclusion, Indian banks outperform Chinese banks, and these practices contribute significantly to SDGs 8, 10 and 13. The dominance of state-owned initiatives in China dictates the alignment of HRM strategies with economic priorities at the national level, highlighting the challenge of balancing global sustainability initiatives with a centralised management system. Originality/value - The study provides a comprehensive examination of sustainability reports with a specific focus on HRM practices and their role in advancing SDGs. It applies institutional theory to understand the differences in the reporting and implementation of HRM practices that contribute to the achievement of SDGs.