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Green Compensation and Rewards for Sustainable Work Behaviour in a Leading FMCG Organization

Author : Shristi Thapa, Assistant Professor Ms. Shruti Rawat Journa Name: International Journal for Novel Research in Economics, Finance and Management Volume: 4 issue: 3 Year: Volume-4-issue-3 Views : 52
Abstract:
Green compensation and rewards represent an emerging frontier in human resource management, wherein organizations design monetary and non-monetary incentive systems specifically aligned with encouraging, recognizing, and reinforcing employee behaviour that advance corporate sustainability goals. As environmental accountability becomes embedded in corporate governance frameworks globally, the strategic alignment of compensation architecture with sustainability objectives has evolved from a peripheral HR experiment to a mainstream organizational practice in leading multinational corporations. A fast-moving consumer goods (FMCG) organization provides a particularly instructive organizational context for examining how green compensation and reward mechanisms are designed and implemented to drive sustainable work behaviour across a large, diverse workforce. This research paper examines the nature, structure, and outcomes of green compensation and rewards strategy through systematic analysis of secondary data drawn from corporate sustainability reports, HR strategy publications, academic literature, and industry benchmarking studies spanning 2021 to 2025. Findings reveal that the integration of sustainability key performance indicators (KPIs) into executive remuneration frameworks, combined with non-financial recognition programs celebrating environmental champions at operational levels, creates a multi-layered incentive architecture that measurably influences employee green behaviour across functions and hierarchical levels. The study identifies critical success factors for green reward system effectiveness and examines how this approach contributes to broader sustainability objectives, offering generalizable insights for organizations seeking to embed sustainability into workforce motivation systems.
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