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The Effect of Sustainable Practices on Organizational Success and Worker Well‐Being

Submitted:

18 July 2025

Posted:

22 July 2025

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Abstract
Organizations now place a high priority on employee well-being as a result of the evolution of labor modes, especially the move towards remote and hybrid employment. According to research, implementing inclusive, sustainable workplace policies that put mental and physical health first greatly boosts worker satisfaction, productivity, and engagement. Adopting policies that promote holistic well-being—such as inclusive workplaces, flexible work schedules, and mental health support programs—is becoming more and more important for both professional and personal growth. These policies not only benefit workers, but they also boost the company's bottom line and align with the worldwide Sustainable Development Goals (SDGs), especially SDG 3, which concerns health and wellbeing. Research by (Gechbaia et al., 2024), and others emphasises how important sustainable HRM practices are for fostering employee well-being and minimizing environmental effects, which creates a win-win situation for businesses and employees. Putting money into well-being initiatives like providing flexible work schedules and encouraging mental health has been shown to improve company culture and support sustained commercial success. The necessity of such methods is further highlighted by the post-pandemic work environment. Setting sustainability and employee well-being as top priorities can provide businesses a competitive edge as they strive to meet new challenges. This policy highlights the importance of employee well-being to a company's long-term performance by putting businesses in a better position for growth, innovation, and market adaptability.
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1. Introduction

As work models evolve and remote and hybrid options gain traction, prioritizing employee well-being has become essential for organizations across various industries. Progressive organizations prioritize not only physical health but also the mental and emotional well-being of their employees, striving to cultivate inclusive, sustainable environments that promote both professional and personal development. The changes indicate a significant transformation in workplace culture, wherein the conventional understanding of well-being, traditionally focused on fundamental benefits like healthcare plans and physical wellness programs, is undergoing redefinition. Well-known companies are implementing more comprehensive, all-encompassing strategies that take into account a variety of wellness factors, with a special emphasis on mental health. Organizations may demonstrate their understanding of the significance of workers' mental health to their overall performance by integrating programs such as psychological support, stress management training, and mindfulness practices into a complete well-being plan.
Furthermore, ensuring that workers feel appreciated and supported at work depends heavily on inclusivity. Organisations must create policies that can be adjusted to meet the various needs of their employees in order to do this. Offering employees the option of remote work and flexible working hours, for example, are good ways to help them better manage their personal and professional life. In the fast-paced world of today, where employees are under more and more pressure to balance work and family obligations, this is particularly pertinent. One of the most important elements in raising worker productivity these days is mental wellness in particular. Workers who get emotional support are more likely to be motivated, engaged, and innovative in their work. As a result, organisations need to concentrate on fostering an atmosphere that lets people talk about their difficulties without worrying about being stigmatised. Mental health care is both an ethical necessity and a smart financial decision for companies since it helps employees become more self-reliant and productive.
Many businesses around the world have realised how important it is to support work-life balance by implementing measures like longer parental leave, remote work choices, flexible work schedules, and mental health initiatives. In addition to helping businesses keep top talent, these programs draw in highly qualified workers who are increasingly looking for firms that appreciate and understand holistic well-being. Businesses must link their principles with the welfare of their employees in order to thrive in the current competitive climate (Anwar & Abdullah, 2021). This will increase employee happiness and retention over the long run.

2. Background

The contribution of sustainable practices to promoting the general health and well-being of employees has been the subject of numerous research. The research of (Di Fabio, 2017), for instance, looked at the function of sustainable workplace practices and their beneficial effects on environmental results as well as employee well-being. According to their analysis, these approaches enhance the company's overall viability and assist reduce pollution. Crucially, sustainable human resource management (HRM) techniques can benefit the business monetarily while also reducing detrimental effects on worker well-being (Chillakuri & Vanka, 2021). In order to promote the attainment of the Sustainable Development Goals (SDGs), the study emphasised the necessity for organisations to create and execute HRM strategies that incorporate sustainability.

3. Methodology

As part of the technique used in this work, a bibliographic review was conducted utilising reputable scientific databases such as Google Scholar, PubMed, Web of Science, and Scopus. The primary objective was to gather relevant scholarly literature on the subject and assess and analyse it. Specific inclusion criteria were set up to guarantee quality and relevancy, such as papers having to have been peer-reviewed, being written in English, and having been published within the past ten years. The analysis of the chosen sources offered a strong and thorough theoretical framework that supported the arguments and conclusions made in this study.Similar to this, (Singh et al., 2019) investigated the connection between workplace well-being and self-efficacy, paying special attention to how sustainability practices may moderate this association. The study showed that self-efficacy had a beneficial impact on workplace well-being, with CEOs who practiced sustainability at a high level reporting higher levels of well-being. According to this research, workplace sustainability programs can greatly raise workers' well-being by boosting their self-confidence in their capacity to handle obstacles. The survey also underlined how crucial it is to look at sustainability practices from an HR standpoint, emphasising how companies may improve worker productivity and well-being by carefully incorporating sustainable practices.

4. Results and Discussions

The study of (Gulzar et al., 2021) added to the corpus of research by investigating how employees' subjective well-being is impacted by their opinion of fairness. Their research, which looked into thriving at work and workplace civility as mediators of this link, discovered that subjective well-being was directly impacted by fairness perception, with thriving and workplace civility playing important roles in this process. This study reaffirmed how crucial it is to provide a fair and respectful work environment since it enhances employee happiness and wellbeing. One of the most important ideas in positive organisational study, "thriving at work," is thought to be essential to advancing social sustainability. The study provided theoretical understandings as well as useful recommendations for businesses looking to improve worker happiness and general well-being by fostering justice and civility.
In a similar vein, (Bergefurt et al., 2024) investigated how exposure to environment can promote mental health and wellbeing at work. According to their research, employees who are exposed to nature, both indoors and out, have major health benefits, reduced stress, and increased motivation. The study demonstrated that while outdoor exposure supports more general sustainability objectives, such as environmental, economic, and social sustainability, interior nature exposure can have a favourable impact on employees' motivation and health. Employers may improve employee performance and well-being while also encouraging integrated sustainability by including indoors as well as outdoors nature exposure into workplace layouts. This study offers insightful information about how businesses can create environments that maximise worker satisfaction and improve sustainability results. The study of (Lasisi et al., 2022), concentrated on the negative consequences of workplace favouritism on the growth of a sustainable workforce. Their research highlighted how organisational politics and favouritism can seriously impair knowledge-sharing practices, psychological capital, and employee well-being. Individual workers as well as the long-term viability of the workforce are negatively impacted by this. Businesses may foster a more positive, productive, and long-lasting work environment by promoting equity and merit-based decision-making, according to the study's theoretical and practical recommendations.
Last but not least, (Cinar & Bilodeau, 2022), talked about how important long-term mental health and well-being (MHW) is to attaining sustainable growth, especially for SMEs. Their study brought to light the dire repercussions of inadequate MHW, which result in large losses in productivity on a worldwide scale. They advocated for interventions that are customised to the particular requirements of organisations and put out a customised, proactive approach for addressing workplace mental health. Based on data from their research, the study presented a five-stage MHW model that provides SMEs with a road map for implementing and assessing the SDGs, especially SDG3, in accordance with their corporate objectives. This study reaffirms how important mental health is to attaining long-term economic results, especially in the wake of the epidemic. Collectively, these studies show how mental health programs, equitable work environments, and sustainable HR practices are essential to raising employee engagement, promoting well-being, and boosting overall organisational success. Businesses may build healthier, more productive workplaces that help reach larger sustainability goals by giving priority to these factors, which will benefit both workers and society as a whole.

5. In Summary

In summary, the development of work models that prioritise mental health, well-being, and sustainable practices has been essential to an organization's performance in the modern environment. The reviewed study emphasises how crucial it is to implement inclusive and comprehensive policies that support workers' physical, mental, and emotional well-being, as this in turn leads to higher levels of engagement and productivity at work. Adopting sustainable practices, such as promoting mental health, creating inclusive environments, and stressing employee well-being, not only strengthens organisational culture but also positively impacts global sustainable development goals (SDGs), such as SDG 3, which focusses on health and well-being. According to research by (Lu et al., 2023), businesses that implement sustainable HRM practices enhance employee well-being while also lowering environmental effects, boosting business viability, and generating a win-win situation. As a result, making investments in the well-being of employees is a wise and essential business strategy, particularly in the wake of a pandemic. In addition to improving workers' quality of life, this workplace sustainability model spurs business expansion and innovation, giving them a competitive edge in a market that is always evolving.

References

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  7. Gulzar, S. , Ayub, N., & Abbas, Z. (2021). Cogent Business & Management Examining the mediating-moderating role of psychological contract breach and abusive supervision on employee well-being in banking sector Examining the mediating-moderating role of psychological contract breach and abusive supervision on employee well-being in banking sector. Cogent Business & Management, 8(1). [CrossRef]
  8. Lasisi, T. T. , Constanţa, E., & Eluwole, K. K. (2022). Workplace Favoritism and Workforce Sustainability: An Analysis of Employees’ Well-Being. Sustainability (Switzerland), 14(22). [CrossRef]
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