Credible Green HRM and Employee Green Behaviour in Pakistani Banks: The Roles of Green Psychological Climate and Perceived Greenwashing

Abstract

The main objective of this study is to examine how green human resource management (GHRM) practices influence employee green behaviour (EGB) in the context of Pakistani commercial banks by focusing on the mediating role of green psychological climate (GPC) and the moderating role of perceived greenwashing. Drawing on ability motivation opportunity theory, social exchange theory, and signalling and legitimacy perspectives, the study proposes that GHRM practices foster a shared perception that environmental sustainability is valued and supported, which in turn encourages both in-role and extra-role green behaviour. At the same time, perceptions of greenwashing are expected to weaken the credibility of green HR signals. Data were collected through a questionnaire survey administered via Google Forms to employees working in commercial banks operating in Pakistan. Out of 500 distributed questionnaires, 203 usable responses were obtained, yielding a valid response rate of 40.6%. The hypothesized moderated mediation model was tested using partial least squares structural equation modelling (PLS-SEM) with bootstrapping procedures. Measurement quality was evaluated using established criteria for reliability and validity. The findings indicate that GHRM practices are positively associated with green psychological climate, which in turn predicts both in-role and extra-role employee green behaviour. Perceived greenwashing negatively moderates the relationship between GHRM and green psychological climate, such that the indirect effect is weaker when greenwashing perceptions are high. Banking organizations should ensure internal credibility and authenticity in green HR systems to strengthen employee engagement in environmental sustainability.