business ethics n hrm

Business ethics and corporate social responsibility

ETHICS IN HUMAN RESOURCE MANAGEMENT 

Introduction  

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Eth Ethics  thic icss ????  ????  Ethics

are con consi sider dered ed th thee mo mora moral rall st stand andard ardss b  by by y wh whic ich h pe  peopl peop pe ople le e j  judge judge jud udge ge behavior. behavi beh avior  or . hics are of oft ofte tten en ssu sum umm um mmeed du up p in what iiss co cons nsid ider ered ed th thee ³³g ³gol gold go olde lden den en n rule´²  rulle´ ²do ru do Etthics unto ot unto othe hers rs aass yo ou u wo woul uld d ha have ve th them the hem em m do do unto. unto.

rm ????  H  rm????  "The

Pro Proce Proc Pr oces cess ess sss of  of ana analy lyzi zing ng an and d man anag agin ing g an org organ organiza orga aniz nization izat ation tions ionss huma human human n resources resou res ource rcess need ne needs edss to en ensu ensure ensur sure re e sat satisfa isfacti ction on of  of it its its st strat strategi stra rategi tegic egicc objec objectiv objectives´ tives´ es´

Ethics in human resource management  

large area of   hu large hum human re rela rellati lations tions ons ma mana manage nageme gem ment ment is cco conc on nce cerne ned ned with v various arious ethic et ethical hical al is issue issu sues, sues es, s,, bo bot both on the part of  f upper±  upper   ±level leve le vell ma manag man anag nagem agem ement emen entt in in iit its ts  business busin bus ines esss decision decisions onss and lower±  lower   ±level leve le vell man anag anagem agemen ement ent in the treatment of  f individual individual employees.. IIn employees n maki king king ng d dec de ecissi sion ion onss the human re reso resour source urce ce man anag ana nag ager  ger  er sshould hould consi con consider  sider der al alter terna nati tive ve sol soluti solu so luti utions tion onss tto o the needs of  f th the the  b  bus busi bu usin sin ines nes esss aass well as tthe he effect eff effects ectss the dec decisi isions ons wi will ll ha have hav ve ve on th the the li live vess of  of the the em empl employees. ploy oyees ees.

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Frequently a h Frequently hum hu uman re reso ressour sou our urce rce man anag anager  ager  er will be gi give given ven in inst stru ruct ctio ions ns fr from om high hi higher  gheer le leve level vell man anag agem emen entt to to taak ake ke aac acti cttion ion wh whic which ich will  b  be be op oppr pres essi sive ve tto o the the empl employees ploy oyeees and the manager  r must eithe her her  r  p  pre pres pr rese ese sent ent ar argu argum gumen ents ents ts to h higher  igher  man management anag agem emen entt fo for  forr  r al alte altern ternat rna nat ate te so solu solluti lut utio tions ions ons ns w whic wh hiich ch will have lle les ess impact on the the empl em employee ploy oyee ee mor oral orale ale or  r de dettermine ne the he best method fo for forr  im impl plem emen enti ting ng th thee instruct inst instructions ructions ions wh whic which ich h ha have ve b  bee been be een en n given. give gi ven n.

Ethics Activities  HR  Ethics 

Staffing and selection 

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Fostering the perception of fairness in the processes of recruitment and hiring of people.

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Formal procedures

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Interpersonal treatment

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Providing explanation

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T  raining 

 How

to recognize ethical dilemmas.

 How

to use ethical frameworks (such as codes of conduct) to resolve problems.

 How

to use HR  functions (such as interviews and disciplinary practices) in ethical ways.

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P erformance erformance appraisal  

 A ppraisals

that make it clear the company adheres to high ethical standards by measuring and rewarding employees who follow those standards.

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R  eward and disciplinary systems 

 The

organization swiftly and harshly punishes unethical conduct.

Employees rights and duties 

Right to work.

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Right to just remmuneration remmuneration..

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Loyalty towards organisation organisation..

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Right to participation.

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Freedom of speech.

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Right to healthy healthy nd nd ssafe af e  working condition. Right to privacy and to normal family life.

Employers rights and duties 

No discrimination rules for recruitment and hiring.

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Duty to fair compensation.

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Duty to inform and to consult worker.

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Duty to improve quality of   work.

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Requirement of the correct behavior at the workplace.

IM PO  PO R   T  H  ICS IN HR  M  RT      ANCE OF  E T   ETHICS is important in human resource management, for several reason:

1. ethics corresponds to basic needs. 2. values create credibility with the public. 3. value gives the management credibility with its employees. 4. Values helps better decision making. 5. Ethics and profit together. 6. laws cannot protect the society, ETHICS can

E T   T  H  ICAL ISSUES  HR  E  EMPLOYEE RESPONSIBILITY

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esponsibility R esponsibility

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esponsibility R esponsibility

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An

to employer V/S Obligation to public safety.

towards oneself or towards family clashes with responsibility towards employer. issue i.e. gaining increasing importance these days.

CAS H   AND INCEN T   T  IVE P LANS  LANS  H  AND

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Annual

incentive plans.

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Long--term Long -term incentive palns.

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Executive

perquisites.

P E  E R   A PP  PP R   RFO     R   RMANCE    R AISAL     

Assessment

of an individual¶s performance is based on observation and judgment.

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Yet HR  managers assign performance on the basis of unrelated factors.

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Ethics

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Objective of ethical performance reviews should be to provide an honest assessment of the performance.

should be a part of Performance appraisal. appraisal.

 ACE, GENDE R   TY   R   R  & DISABILI TY   

Minorities

should be respected and given fair treatment.

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Employees

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Sexual harassment harassment issues should not be b e over looked.

suffering from illness or disability should be treated equal.

O B DISC R   T  I O  T   ON  N     J O  RIMINA     

It refers to making adverse decision against employees

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The

main 4 common discriminatory practices are:are: -

1. Individuals discriminate on the basis of stereotype. 2. Organizations also discriminate. 3. Discrimination on the ground of sex and race. 4. Workplace Harassment.

P R   Y  ISSUES  Y   RIVAC     

Use

of technology at times breach the privacy of employees.

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Drug testing should be done only when it is relevant to the job.

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Protection to the whistle blowers.

SA F  FE  E    TY   TY  AND H  EAL T   T  H   

Industrial work is hazardous.

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Accidents,

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injuries and illnesses occur.

 New categories of accident and illness have emerged, including the fast growing job safety problem. Ethical

Issues involved here: 1. Assessment of R isks. isks. 2. R ole ole of Government in Safety and

Health.

T  R  UC T   T  U R   AND LA YOFF  YOFF S  S  R  ES T   RING    

It should be constructed in the atmosphere of of fairness and equity.

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Decisions should should not be taken under personal grudges.

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Alternatives

to layoffs should be tried. to

Ethical committees  Many

companies have ethics ethics committee to advise on ethical issues .such a committee can be a high ± ± level one comprising comprising the the board of directors directors , chaired by the CEO of the company. Such committees help the company in establishing policies in new n ew or  uncertain areas, advise the board of directors on ethical issues, and oversee the enforcement of the code of ethics. Following are the committees 1.Ethics Hot 2.Whistle

Lines

Blowing

histle blowing in action  W histle SR.NO. SR.NO.

N NAME AME O OF F THE THE ORGANISATIO N 

WHISTLE W HISTLE BLOWER  BLOWER BL

C CONSEQUENCES ONSEQUENCES

1

nron Enron

Sher ron Watkins

Liquidatio Liqui Liquidation dation of of the th the company 

2

Kellogg Kellogg IIndia ndia

Senior Senior executive executive (name not known)

Dismissal of two senior senior executive who were promoted for excellent performance a few month before

3

Director Director FBI,US FBI,US

Coleen Rowley  

 Attack Attack on on the the world world trade trade centre, US

4

 W World or ld com com

Cynthia cooper

C Company ompany g gone one bust bust

5

Xerox Xerox

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CFO CFO m made ade to to pay pay $5.5 $5.5 million in fines and banned by the SE from  practicing accountancy

6

 Johnson  Johnson and johnson,bayer India

Installed whistle Blowing systems

No incident is reported

7

LG India

10 -12

cases have been reported to head office, south Korea

Not known

R  H   HUMAN     R  ES O  R    C O  ODE  D   E OF  E T   T  H  ICS FO R   OU  U   R     CE  MANAGE R   RS    

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High

standards of professional and personal conduct.

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Continuation of personal growths in the field of human resource.

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U pload

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Maintain

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efrain R efrain

all laws and regulations relating to employer¶s activities. the confidentiality of privileged information

from using personal position for in appropriate ap propriate gain

Example_ 

C O  ODE  D   E OF  C O  O NDUC  NDUC T   T  IN T    A T   T A     F or or the company   

F or or the employees 

Customer satisfaction  Accounting and financial reporting 

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Moral

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Non--disclosure Non -disclosure of important information about company 

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Interest of country 

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0pen market economy 

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Unfair practises

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Enviornmental

regulations

rules and

and ethical standards

 Whistle blowing  Protects the interest of  company 

Conclusion  

Hence, HR  professionals

are responsible responsible for adding value to the organisations organisati ons and serve and contribute to the ethical success of those organizations. They should accept professional responsibility for their  individual decisions and actions. They also advocate advocate for the profession by engaging in activities that enhance its credibility and value.

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±   branch Ethics ±branch

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Highest standard of

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Individual leadership

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Fairness and justice

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Protect the interest of stakeholders

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Protect the rights of individual individualss

of philosophy competencee competenc