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ISSN 2816-8151 (Online) - ISSN 2816-8143 (Print)
© 2022 by the authors; licensee Growing Science, Canada
doi: 10.5267/j.jfs.2022.11.100
Journal of Future Sustainability 2 (2022) 157–166
Contents lists available at GrowingScience
Journal of Future Sustainability
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Organizational sustainability: Issues, challenges and the future of Bangladesh pharmaceutical industry
Mostafizur Rahmana*, Sazali Abd Wahabb and Ahmad Shaharudin Abdul Latiffc
aPhD Researcher, Putra Business School, Universiti Putra Malaysia, Selangor, Malaysia
bProfessor, Putra Business School, Universiti Putra Malaysia, Selangor, Malaysia
cSenior Lecturer, Putra Business School, Universiti Putra Malaysia, Selangor, Malaysia
C H R O N I C L E A B S T R A C T
Article history:
Received: March 20, 2022
Received in revised format: July
28, 2022
Accepted: November 1, 2022
Available online:
November 1, 2022
This study aims to contribute to the literature on organizational sustainability and explore the
issues, challenges, and prospects of the Bangladesh pharmaceutical industry in terms of sustain-
ability. Organizations around the world are becoming more and more concerned about their
ability to reduce or prevent the adverse effects of their actions. Sustainability, socially respon-
sible human resource management (SRHRM), green human resource management (GHRM),
characteristics of stakeholders, voluntary green behavior, innovative behavior, and government
roles are the main areas of concern. Research and existing literature are explored to have a clear
grasp of several organizational sustainability components. This study also shows how organiza-
tions understand and implement organizational sustainability concerns and difficulties and how
to identify whether essential systemic components are still unaddressed. It's difficult to balance
social, economic, and environmental responsibility with sustainability. Enhance SRHRM and
GHRM by examining stakeholder characteristics and the government's involvement, combined
with voluntary green and creative behavior, to create a positive image for society, the economy,
and the environment. This research explores the issues, challenges, and prospects of Bangla-
desh's pharmaceutical industry's organizational sustainability. In contrast to the age of industry
4.0, artificial intelligence and machine learning concerns about human resource management,
stakeholder characteristics, government role, and employee behavior contribute to the organiza-
tional sustainability of the pharmaceutical sector. The study presents first insights on the issues,
challenges, and prospects of Bangladesh's pharmaceutical industry from the perspective of or-
ganizational sustainability. Sustainability, employee green and innovative behavior, SRHRM,
GHRM, stakeholder characteristics, and government roles are drawing the attention of organi-
zations globally. They are taking more and more responsibility for how their actions affect the
environment, society, and the economy.
© 2023 by the authors; licensee Growing Science, Canada
Keywords:
MES
Sustainability
Organizational sustainability
Issues, Challenges
Pharmaceutical industry
Bangladesh
1. Introduction
Businesses in entire manufacturing sectors are increasingly aware of their financial, ecological, and societal responsibilities,
as well as the importance of achieving augmented value and international success, in addition to the conventional monetary
or profitable aspect, which is not only demonstrating economic objectives, but also considering ecological, security, and
social dimensions. The industrial sector, especially the pharmaceutical business, depends mainly on resource-oriented pro-
duction or operations. This sector consumes a lot of energy, water, and solvents, which are crucial to our ecosystem and
society, so it can play a big role in sustainability. The 2030 Agenda for Sustainable Development of the United Nations
(UN, 2015) states that 17 development goals should be attained to benefit people, the environment, and organizations as a
whole, which comprises all present and future generations. These growing objectives also highlight the importance of pro-
moting worldwide exposure to well-being and ensuring people's health. When comparing operational profits to emissions,
pharmaceutical manufacturers around the world are more emission-oriented than automotive manufacturers (Belkhir &
158
Elmeligi, 2019; Weisza et al., 2020). This makes CO2 and GHG levels rise, which could lead to catastrophic global warming
and social, economic, and environmental collapse (Chandler et al., 2002; Otto et al., 2018; Kalra and Kumar, 2019). This
industry is largely responsible for environmental harm through GHG emissions and severe discharges (Belkhir and Elmeligi,
2019). This sector contributes 12% of acid rain, 10% of GHG emissions, 10% of smog formation, 9% of air pollutants, 1%
to stratospheric ozone depletion, and 1% to 2% of carcinogenic and non-carcinogenic air toxins, according to Eckelman and
Sherman (2016). The World Health Organization (2019) identifies climatic environmental changes as "the greatest hazard
to global health in the 21st century." As a result of human-caused climate change, global health systems are already con-
fronted with formidable obstacles affecting the health concerns of millions of people around the world (Watts et al., 2019).
It has a significant impact on our quality of life by decreasing our air quality, water quality, and dietary habits. The annual
decrease in global output due to air pollution is already estimated at over $5 trillion (World Bank and IHME, 2016), while
Bangladesh remains at the top of the world's most polluted countries list (WAQR, 2019). This climatic vulnerability is
largely responsible for the food and drink insecurity of the world's people. So, future generations will have to deal with
catastrophic climate risks, less nutritious crops, a lot of fossil fuel burning that has made air pollution worse, rising average
temperatures in the atmosphere, and more problems with our ability to live (Watts et al., 2019).
In spite of this, Bangladesh is ranked as the sixth most vulnerable nation on the planet to the effects of climate change
(Kreft et al., 2016). From 1997 to 2016, the country had a total of 187 of the most catastrophic weather events, costing an
average of $2.3 billion each year in damage, or about 0.7% of GDP (Eckstein et al., 2018; Hasan et al., 2019). From the
perspective of the sustainable development agenda 2030 (UN, 2015), a significant increase in resource efficiency in con-
sumption and the implementation of strategies to combat climate change will be achieved by 2030. As a result, pharmaceu-
tical companies' current operations have big effects on the environment, especially in the areas of resource deployment and
consumption as well as waste production (Ott et al., 2014; Chaturvedi et al., 2017), in an effort to reach the 2030 agenda
for sustainable development (United Nations, 201). As a result of environmental degradation by manufacturing organiza-
tions, including the pharmaceutical industry, there are a number of external effects, such as rising global temperatures,
melting polar ice caps, and rising sea levels, altering seasonal patterns, observing a large number of natural disasters with
water crises and ecological changes, and health risks, such as a rise in the number of diseases (Chandler et al., 2002; Otto
et al., 2018; Kalra and Kumar 2019). In addition, a violation of business regulations becomes a significant problem when
the violations cause severe damage in a variety of ways, including excessive exploitation of natural resources such as oil,
water, land, and forests; the use of toxic materials in products; the practice of forcing employees to work overtime for less
pay; and the abusive use of insurance policies, which damages the company's corporate image (Global Exchange, 2018).
These violations have effects that are not only harmful to the environment but also harmful to people and the economy as a
whole. Consequently, organizations face emerging trends and challenges regarding their sustainability (Akhtar et al., 2017)
that extend beyond the growth of nations. The pharmaceutical industry has reduced waste generation (USEPA, 2018) and
optimized their manufacturing by reducing the deployment of new resources so that it results in the lowest amount of trash,
radiation, and pollution (Kane et al., 2018; Jaseem et al., 2017; Pratyusha et al., 2012) as a result of their negative environ-
mental effects.
2. Literature Review
Issues Concerning Organizational Sustainability in Bangladesh's Pharmaceutical Industry
Since organizational sustainability is an essential area of interest for the pharmaceutical manufacturing industry (EFPIA,
2016; Ang et al., 2020), for their environmental, social, as well as economic perspectives of prominence for achieving better
value and worldwide victory in the pharmaceutical manufacturing industry (Marques et al., 2019). A review of the relevant
literature reveals that there are a number of factors or issues that influence the organizational sustainability of pharmaceu-
ticals with their advanced technology. This would include: 1) socially responsible human resource management; 2) green
human resource management; 3) characteristics of stakeholders; 4) the role of the government; 5) voluntary green behavior;
and 6) innovative behavior.
2.1 Socially Responsible Human Resource Management
The contribution of socially responsible human resource management (SRHRM) to employee well-being, corporate legal
compliance, and CSR initiatives has been the focus of extensive studies aimed at promoting organizational sustainability
(Uddin et al., 2020; Orlitzky & Swanson, 2006; Newman et al., 2016; Shen & Benson, 2016; Shen & Zhang, 2017; Barrena
et al., 2017; Sancho et al., 2018). Researchers are focusing their attention on socially responsible firms' policies and practices
toward employees (Orlitzky & Swanson, 2006; Newman et al., 2016; Shen and Benson, 2016; Shen and Zhang, 2017;
Barrena et al., 2017); SRHRM and stakeholders (Cantele, 2017); and SRHRM that help companies to engage in CSR initi-
atives for the purpose of achieving both short-term effectiveness and long-term sustainability (Shen & Benson, 2016). Hu-
man resource practices have a significant impact on the adoption of contemporary sustainability practices (Arago and Jab-
bour, 2017). Recent studies (Jabbour et al., 2019) have also found that human resource management helps organizations
achieve their green and sustainable goals. Shen and Benson (2016) claimed that SRHRM is an integral component of CSR
M. Rahman et al. / Journal of Future Sustainability 2 (2022)
159
programs and found a favorable correlation between SRHRM and employee organizational commitment. This concept rep-
resents a convergence between CSR and HRM literature (Nie et al., 2018) and is gaining momentum in the field of business
ethics (Greenwood, 2013; Jamali et al., 2015; Nie et al., 2018). SRHRM has a substantial impact on the competitiveness or
sustainability of a firm (Uddin et al., 2020). Sancho et al. (2018) found that SRHRM also has a positive impact to the
competitiveness of businesses.
2.2 Green Human Resource Management
According to Amrutha and Geetha (2019), green human resource management (GHRM) can play a significant role in en-
hancing the sustainability of an organization by ensuring equity in society through establishing the well-being and welfare
of workforces, as well as contributing to the attainment of financial stability and ecological stability. Researchers have
looked at the use of the three main parts of GHRM: (a) green training, (b) green performance management, and (c) green
employee involvement (Guerci et al., 2016; Masri & Jaaron, 2017; Pinzone et al., 2016). It is likely that providing green
training and recognizing employee green efforts will enhance employee abilities and enable them to participate in green
activities (Shen, Dumont, & Deng, 2018). Green training promotes organizational sustainability (Pinzone et al., 2019) and
is crucial for implementing successful environmental management (Jabbour, 2013) and cleaner production (Pinzone et al.,
2019). (Diana et al., 2017). Chaudhary (2019) describes the relevance of human resource management in ensuring environ-
mental sustainability. It was revealed that there is a favorable connection between the GHRM and sustainable performance
(Mosua & Othman, 2019; Kerdawy, 2018). Studies have also revealed that GHRM has a favorable effect on environmental
sustainability (Masri & Jaroon, 2017). The effects of GHRM on employee behavior, ecological implementation, and organ-
izational economic performance have already been documented in prior literature (Pham et al., 2019a, 2019b; Kim et al.,
2019; O'Donohue & Torugsa, 2016; Longoni, Luzzini, & Guerci, 2018). However, there are few research studies in the
GHRM literature that link organizations with the societal perspective of sustainability. However, we should not overlook
the importance of concentrating on how GHRM affects the long-term sustainability of organizations by bringing together
environmental, social, and economic performance in the pharmaceutical industry. This study places a strong emphasis on
employee green training, green performance management, and green employee involvement in order to investigate the effect
of GHRM on the organizational sustainability of pharmaceutical manufacturing organizations from the perspectives of
ecological, social, and economic considerations.
2.3. Stakeholder Characteristics
Researchers claim that despite the fact that stakeholders play an important role in organizational sustainability (Hrisch et
al., 2014; Kleine & Hauff, 2009), including performance measurement (Searcy, 2012), as well as assessment (Maas et al.,
2016; Moldavska & Welo, 2016), it is unclear what stakeholder interactions and expectations have been examined, and
there has been a lack of inquiries regarding stakeholders (Grewatsch & Kleindienst, 2017). Conferring to the findings of
various studies, a number of stakeholders believe that the most recent sustainability legislation's measurement and assess-
ment methodologies fall short of meeting their expectations (Silva et al., 2019). This study, therefore, adopts stakeholder
characteristics and investigates their relationship with the organizational sustainability of pharmaceuticals. This study looks
at the relationship between stakeholder characteristics and the organizational sustainability of pharmaceuticals. It focuses
on stakeholders' knowledge, interaction, and behavior adaptation in response to stakeholder demand as its dimensions to
extend the relationship between variables in the organizational sustainability model of pharmaceuticals.
2.4 Government Role
Literature demonstrates that the government role (GR) remains important for firms to promote social sustainability by re-
covering incentives so long as they support it, in addition to complying with sustainability regulations, acts, rules, and
standards (Bamgbade et al., 2017). It also suggests a significant impact on sustainability practices (Manning et al., 2012),
environmental regulations (Kumar, 2013), as well as welfare programs of inhabitants and factory workers (Azar and
Menassa, 2012; Hua et al., 2014), with a concentration on government force, which has been identified as the most signifi-
cant external power for the green policies of organizations towards sustainability (Zhu and Sarkis, 2007; Ye et al., 2013; El
Baz & Laguir, 2017). Sometimes it is even found to be inconsistent, and sometimes it is found to have a significant impact
(Blayse Manley, 2004; Massaroni Rossi, 2007; Qi, Shen, Zeng, & Jorge, 2010); other times it is the other way around
(Engels, 2008); and people are unclear about the policies, regulations, and legislation. The outcomes are typically different
from sector to sector on average (Zailani et al., 2012). The aim of this study is to find out how government role affects the
sustainability of pharmaceutical organizations in Bangladesh. This will be done by looking at the topic from the point of
view of Bangladesh's legal system, strategic incentives, and control monitoring policies.
2.5 Employee Behavior
Environmental programs frequently rely on employee behavior; as a result, it is now critical for businesses to preserve their
employees' green and innovative behavior in order to mitigate the negative effects of environmental degradation. The first
160
category of employees’ green behavior is related to voluntary green behavior (VGB). Employees' voluntary green behav-
ior stimulates cooperation among themselves in the interest of environmental sustainability (Paillé, Mej-Morelos, Marché-
Paillé, Chen, & Chen, 2016), and the same for innovative behavior (Paillé, Mej-Morelos, Marché-Paillé, Chen, & Chen,
2016). Voluntary green behavior has a substantial impact on either the competitiveness or sustainability of a business (Uddin
et al., 2020). There is a one-to-one correlation between environmentally conscious actions taken by workers and the sus-
tainability of the environment (Iqbal et al., 2018). The practical benefits of ecologically sustainable enterprises are brought
into focus by the correlation between contentment in one's employment and voluntary green behavior in the workplace
(Kim et al., 2018; Kim et al., 2017). There is a correlation between employee-organization fit and employee green behavior
that is voluntary and this correlation is good (Xiao et al., 2020). According to research by Iqbal et al. (2018), green behavior
concerns among employees are important to optimizing the sustainability effect in the organization. Hence, it has become
a major trend in organizational research (Iqbal et al., 2018; Kim et al., 2018; Paillé et al., 2016; Kim et al., 2017; Chaudhary,
2019). In spite of the focus on voluntary green behavior in other organizational studies (e.g., Paillé et al., 2014; Paillé et al.,
2016; Kim et al., 2017; Iqbal et al., 2018; Kim et al., 2018; Chaudhary, 2019; Xiao et al., 2020), no research has been
conducted in the context of pharmaceutical organizations. Uddin et al. (2020) also recommended that future research inves-
tigate the indirect consequences of voluntary green behavior on SRHRM, organizational competitiveness, or sustainability.
This is the first study to look at how voluntary green behavior affects the organizational sustainability of pharmaceutical
companies. The second segment of employees’ behavior is related to innovative behavior (IB). Literature demonstrates
that innovative behavior is a crucial employee effect associated with the human dimension of organizational sustainability.
For attaining a competitive edge and establishing organizational sustainability, management researchers must analyze this
dynamic component in great depth (Li et al., 2019). In order for businesses to make use of their employees' creativity (Van
de Ven, 1986; Smith, 2002), they must foster innovative working environments (Janssen, 2000). Even though innovative
behavior research is still in its early stages (Christian et al., 2011), managers and practitioners are continually concerned
with innovation in order to achieve long-term organizational success (Ancona & Caldwell, 1992). This dimension is used
in this study to show how innovative behavior affects the business sustainability of the pharmaceutical industry in Bangla-
desh.
In relation to voluntary green behavior, innovative behavior, and socially responsible human resource management, organ-
izational sustainability is a desirable outcome for pharmaceutical sectors. Green human resource management, stakeholder
characteristics, and proper consideration of government role in Bangladesh lead to sustainable manufacturing sectors from
every perspective of the upcoming world. The study chose the converging area of these influential factors towards organi-
zational sustainability in Bangladesh's pharmaceutical industry to focus on the significance of these issues, leading employ-
ees to engage in voluntary green and innovative behavior towards organizational sustainability as this perspective is yet
unnoticed. This study examines how socially responsible HRM, green HRM, stakeholder characteristics, government role,
and organizational sustainability results in Bangladeshi pharmaceutical enterprises contribute to a sustainable manufactur-
ing sector. It will also help organizations in Bangladesh's pharmaceutical industry maximize organizational sustainability,
voluntary green behavior, and innovative behavior in organizations with socially responsible human resource management,
green human resource management, and proper stakeholder consideration.
3. Challenges of Bangladesh Pharmaceutical Industry Toward Sustainability :
Environmental sustainability, sustainable human resource management, green human resource management, corporate so-
cial responsibility, socially responsible human resource management, employee green behavior, and innovative behavior
are all becoming core focuses for many organizations around the world as pressure mounts to reduce the negative environ-
mental effects of their activities and to uphold environmental rules and regulations. Organizations face similar challenges
as environmental issues such as climate change, global warming, pollution, and the energy crisis. These push enterprises to
adopt green practices. Globalization and consumer demand for excellent products have forced sectors to improve product
quality. Industries have only concentrated on economic rewards to achieve quality requirements. It has led to the consump-
tion of nonrenewable resources, waste, and pollution (Cassettari et al., 2017). Non-governmental organizations and rigorous
government laws enforce industry limits to sustain the environment. Government rules prevent industries from breaching
laws and releasing dangerous emissions (Bonizella & Sagar, 2004). In such a paradoxical position, we embrace the advanced
paradigm that can deliver financial gains without compromising environmental preservation (Chan et al., 2017). It's im-
portant for industries to embrace novel paradigms for eco-friendly operations; otherwise, government laws could threaten
their market presence (Esfahbodi et al., 2016).
Increasing industrialization, population growth, and environmental degradation of air, water, and land are causes for fear.
Most developed countries have failed to pass environmental regulations to combat rising pollution. Developing countries
have significant implementation challenges. Insufficient environmental compliance increases a country's total pollution;
Bangladesh is the world's most polluted country (World Air Quality Report, 2019). If the Bangladeshi pharmaceutical man-
ufacturing business is to be competitive and sustainable in its whole market, it must enhance its environmental and social
performance. This industry won't be competitive or sustainable. Unless the company improves its environmental, social,
and economic performance, it won't be able to expand its overall market. Environmental protection, social improvement,
M. Rahman et al. / Journal of Future Sustainability 2 (2022)
161
and economic development with management techniques are organization essentials. The Bangladeshi pharmaceutical sec-
tor must address these difficulties to be competitive and sustainable. This research aims to help Bangladesh's pharmaceutical
industry obtain financial and environmental benefits by adopting a socially and environmentally friendly approach. This
study intends to boost Bangladesh's efforts by changing deeds and creating winning scenarios for all stakeholders, including
government, greening, and social activities. This study enhances the contribution of socially responsible HRM and green
HRM, stakeholder consideration, and government engagement to stimulate voluntary green behavior and innovative phar-
maceutical production, leading to organizational sustainability.
4. Future of Bangladesh Pharmaceutical Industry
Bangladesh's manufacturing industry is vibrant, export-oriented, and economically important. Bangladesh's economy relies
heavily on agriculture, like many South Asian nations. In recent years, manufacturing and the service sector have both
become economic drivers. The industrial contribution to GDP in 2019-2020 is 31.13%, and the manufacturing sector's
contribution is 19.67% (BBS, 2020). Manufacturing employment in total employment is 14.4%. (BBS, 2018). In recent
years, Bangladesh's pharmaceutical exports have hit a record high, with a 16% average annual compound growth rate
(ACGR) since 2006 (Islam et al., 2020). In 2019, a record 25.6% annual growth led to $130 million in exports (Razzaque
et al., 2020), which was 65 times more than in 2000. If the 23% average annual export growth rate from the past five years
continues, exports might reach $1.3 billion by 2030 (Razzaque et al., 2020). Bangladesh's government has recently empha-
sized exporting pharmaceuticals. Pharmaceuticals will be the second-biggest export after ready-made garments. These in-
dicators show the industry's impact on Bangladesh's economy.
This industry will be Bangladesh's top when it demonstrates sustainability in society, the economy, and the environment.
To be a responsible and sustainable company, it must improve its socially responsible human resource management and
green human resource management practices, consider its stakeholders and the government's role, and ensure voluntary
green behavior and innovative behavior among its employees, creating a positive image for society, the economy, and the
environment.
5. Recommendation and Conclusions
Pharmaceutical production boosts sustainability and promotes broad access to cutting-edge drugs. Technological improve-
ments, such as nonstop industrial processes (Lee et al., 2015) and industry 4.0 (Branke et al., 2016), are dictating and
modifying the pharmaceutical manufacturing sector's conservative scenario. Emerging markets and healthcare structures
are expected to affect pharmaceutical operations and commercial imitations. This sector's ever-changing environment forces
pharmaceutical manufacturers to abandon their conservative operating techniques and adopt more efficient, sustainable,
adaptable, and customer-focused ones (Marques et al., 2019). Given the importance of the pharmaceutical business, poli-
cymakers around the world focus on ensuring sustainable pharmaceutical manufacturing. Sustainable development goals
(United Nations, 2015) recommend promoting sustainable growth, efficient use of limited resources, limiting environmental
damage (The World Bank, 2014), and treating employees as members of society (Tajbakhsh & Hassini, 2015). Several
developed and developing countries have already started their own projects to make the pharmaceutical industry more
sustainable, with the goal of proving their sustainability performance.
This study contributes to the management and organizational sustainability literature by addressing the issues and challenges
of socially responsible human resource management, green human resource management, stakeholder characteristics, gov-
ernment role, voluntary green behavior, and innovative behavior in the context of environmental, social, and economic
management. This study's managerial contribution is an in-depth understanding of issues such as socially responsible human
resource management; green human resource management; stakeholder characteristics; government role; voluntary green
behavior; and innovative behavior as they pertain to the organizational sustainability of Bangladesh's pharmaceutical indus-
try. The study identifies and clarifies multidimensional elements that influence the organizational sustainability of pharma-
ceuticals by enhancing the aspects of these issues for the sustainability of pharmaceutical manufacturing companies. This
study's measurement of sustainability can serve as a guide for organizations seeking to become environmentally, socially,
and economically sustainable. The study also assists management in implementing the aforementioned challenges and
achieving sustainability. The pharmaceutical sector is becoming increasingly concerned with socially responsible human
resource management, green human resource management, stakeholder characteristics, government role, voluntary green
behavior, innovative behavior, and organizational sustainability. Pharmaceutical companies in developing countries can't
just ignore these problems.
Acknowledgements
Mostafizur Rahman and Sazali Abd Wahab conceived the idea; Mostafizur Rahman collected the data and wrote the paper.
Professor Sazali Abd Wahab and Ahmad Shaharudin Abdul Latiff supervised the work. The authors acknowledge the sin-
cere contribution and support of Professor Sazali Abd Wahab.
162
Conflicts of Interest
The authors declare no conflict of interest.
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