Human Capital & Its Implications On Corporate Sustainability And Performance: Empirical Evidence From India

Abstract

Economic and social progress rely on the integration of human capital and sustainable practices. Sustainability involves fostering an organizational culture capable of addressing significant social and environmental challenges, rather than focusing solely on technological or procedural investments. Sustainable resource and environmental management consider future needs whereas financial success demonstrates firm profitability. The Financial measurements and indicators assess the company's profitability, liquidity, and stability. This made us study corporate human capital and performance. This evaluation analyses a 10-year sample of Nifty 100 firms. ESG Environment, society and governance ratings are used to assess firm sustainability. ROA, ROE, Tobin's Q, ROCE and sales assessed the company's performance. The study found that firms' human capital positively affects its sustainability performance. The firm's human capital was positively correlated with the ESG elements' environment (E-Score), social (S-Score), and governance (G-Score) components. Human capital was shown to have a greater impact on sustainability performance than financial performance.