The Relationship Between Green Operational Practices and Business Performance Metrics among SMES in the Philippines: Basis for HR Sustainability Framework

This study examined the relationship between green operational practices and business performance metrics among small and medium enterprises (SMEs) in the Philippines, as a basis for proposing an HR Sustainability Framework. Using a descriptive-correlational quantitative design, data were collected from 100 SME employees in operational, supervisory, and managerial roles. A structured questionnaire using a 4-point Likert scale measured four green operational practice dimensions (energy/resource efficiency, waste reduction, sustainable sourcing, and employee participation) and three business performance dimensions (environmental innovation, social innovation, and operational sustainability/efficiency). Data were analyzed through frequency/percentage, weighted mean and standard deviation, and Pearson’s r using SPSS. Results showed high implementation of green operational practices and high levels of perceived business performance. Correlation analysis confirmed significant positive relationships between all green practice dimensions and business performance, with the strongest association observed for waste reduction. Based on the findings, an HR Sustainability Framework is proposed to institutionalize sustainability through green recruitment, training, performance systems, and culture-building. Keywords: green operational practices; SME performance; sustainability; green HRM; Philippines htpps://orcid.org/0009-0001-7893-1644 delaguardia.roldan@gmail.com University of Perpetual Help System DALTA Las Piñas, Manila, Philippines