THE ETHICAL ISSUES IN THE FIELD OF HRM

By definition, Ethics is that branch of philosophy dealing with values relating to human conduct,
with respect to the rightness and wrongness of certain actions and to the goodness and badness of
the motives and ends of such actions.

Business Ethics (also known as corporate ethics) is a system of moral principles applied in the
commercial world. It provides guidance for acceptable behaviour in both the strategy
formulation and day to day operation to knowing the difference between right and wrong and
choosing to do what is right. It applies to all aspects of business conduct and is relevant to the
conduct of individuals and business organizations as a whole.

Why business ethics?

Discussion on ethics in business is necessary because business can become unethical, and there
are plenty of evidences today on unethical corporate practices. Adam Smith opined that ‘People
of the same trade seldom meet together, even for merriment and diversion, but the conversation
ends in a conspiracy against the public, or in some contrivance to raise prices’. Firms and
corporations operate in the social and natural environment. By virtue of existing in such
environments, business is duty bound to be accountable to the natural and social environment in
which it survives. Irrespective of the demands and pressures upon it, business by virtue of its
existence is bound to be ethical for at least two reasons: one, because whatever the business does
affects its stakeholders and two, because every juncture of action has trajectories of ethical as
well as unethical paths, wherein the existence of the business is justified by ethical alternatives it
responsibly chooses.

An ethical business would result to good employment relations between the employer, employee
and their representatives. Specific benefits include good corporate image, Reduces turnover,
hence savings in recruitment/ selection cost. Greater commitment resulting to quality output /
reduces rejections, more open communication, resulting to better understanding. Low level of
industrial conflict hence high productivity. Increased job satisfaction level, means smooth
workflow. Shared goals- better understanding of business. Shared Values - agreed values binding
the employees. Shared effort -better teamwork.
Human resource management occupies the sphere of activity of recruitment and selection,
orientation, performance appraisal, training and development, industrial relations and health and
safety issues where ethics really matters. The field since operate surrounded by market interests
that commodify and instrumentalize everything for the sake of profit claimed in the name of
shareholders, it should be predictable that there will be contesting claims of HR ethics.

The discussions on ethical issues that may arise in the employment relationship, including the
ethics of discrimination, and employees' rights and duties are commonly seen in the business
ethics texts. While some argue that there are certain inalienable rights of workplace such as a
right to work, a right to privacy, a right to be paid in accordance with comparable worth, a right
not to be the victim of discrimination, others claim that these rights are negotiable.

Ethical discourse in HRM often reduced the ethical behavior of firms as if they were charity
from the firms rather than rights of employees. Further, it is argued since because 'both
employees and employers do in fact possess economic power' in the free market, it would be
unethical if governments or labour unions 'impose employment terms on the labor relationship'
(Machan, p. 67). However, though market need not be the cause of moral or ethical hazards it
may serve an occasion for such hazards. The moral hazards of HRM would be on increase so
much as human relations and the resources embedded within humans are treated merely as
commodities.

Some of the ethical issues in HR include the following:

• Occupational safety and health.

• Performance appraisal: objective and honest assessment of employees
• Restructuring and layoffs: fairness and equity, decisions should not be taken under
personal grudges, alternatives to layoffs should be tried.
• Discrimination issues include discrimination on the bases of age (ageism), gender, race,
religion, disabilities, weight and attractiveness. Sexual harassment and fair treatment
• Issues arising from the traditional view of relationships between employers and
employees, also known as At-will employment.
• Issues surrounding the representation of employees and the democratization of the
workplace: union busting, strike breaking.
• Issues affecting the privacy of the employee: workplace surveillance, drug testing.
• Issues affecting the privacy of the employer: whistle-blowing.
 • Issues relating to the fairness of the employment contract and the balance of power
between employer and employee: slavery indentured servitude, employment law.
• Child labor

After highlighting the above HR issues and for the purpose of this discussion, it is easy to
determine whether a leadership is ethical or not. In Kenya for example, HR has been accused of
being compromised in some functions especially in recruitment and selection. Nepotism,
corruption and favourism have taken root in recruitment in both government and private sector.
Employee development has also been affected by these factors. Areas like career development
and promotions should be done on merit where all procedures should be followed according to
HR policies in order to embrace transparency in this function.

The Code of Ethics

This is a set of principles governing morality and acceptable behaviour of an organisation. It is

likely to cover:

 Behaviour towards society e.g. when recruiting and Corporate Social Responsibility.
 Personal behaviour e.g. when dealing with customers and colleagues
 Corporate behaviour e.g. when negotiating deals with suppliers, customers, regulatory
bodies etc
 Behaviour towards the environment e.g. when deciding on process

The Institute of Business Ethics recommends that organisations issue statements of ethical
practice in respect of:

 Relations with customers

 Relations with shareholders and other investors
 Relations with employees
 Relations with the government and the local community
 The environment
 Issues relating to international business
 Ethical issues concerning directors and managers
  Compliance and verification

In addition to having a Code of Ethics, the institute of Business Ethics recommends that
organizations should put in place the Ethical Audits. This is an audit of all the firms activities
whose purpose is:

 To check that ethical principles are being pursued

 To check the extent to which actions are consistent with the organisation’s stated
ethical intentions
 And to establish action plans if they are not

Conclusion

HR professionals are responsible for adding value to the organizations they serve and contribute
to the ethical success of those organizations. They should accept professional responsibility for
their individual decisions and actions. They also advocate for the profession by engaging in
activities that enhance its credibility and value. As a strategic business partner, ethical HR will
enable the organization to achieve its corporate goal when everything is done as per the book.