Ethical Issues in Human Resource Management:

Human resources departments must handle a host of ethical and legal issues. From the
regulations of the Equal Employment Opportunity Commission to the standards and practices of
organizations such as the Human Resource Management Institute, HR constantly must be
monitored to make sure it complies with hiring, promotion and termination guidelines. Decisions
about benefits, conflict resolution, paid time off and maternity leave also can present difficulties.
Labor Costs:
HR must deal with conflicting needs to keep labor costs as low as possible and to offer fair
wages. Ethics come into play when HR must choose between outsourcing labor to countries with
lower wages and harsh living conditions and paying competitive wages in the United States.
While there is nothing illegal about outsourcing labor, HR can create a public relations problem
if consumers object to using underpaid workers to save money.
Opportunity for New Skills:
If your HR department chooses who gets training, it can run into ethical issues. Because training
is an opportunity for advancement and expanded opportunities, employees who are left out of
training may argue that they are not being given equal opportunities in the workplace. HR must
make certain to clarify the business reason behind its training decisions so employees understand
why specific individuals receive training when others don't.
Working Conditions:
HR must work to maintain safety standards and clean working conditions for employees based
on Occupational Safety and Health Administration requirements. Employees also have the right
to expect a workplace free of sexually suggestive signs or comments, and disabled employees
must have access to the building. HR must make sure lighting and air quality are adequate.
Honoring Benefit Provisions:
Some companies have reneged on promises they made regarding pension programs. HR has an
ethical responsibility to make sure that any benefits offered to employees actually pay as
intended. This means monitoring company-managed benefits as well as insurance companies to
make sure there are no financial problems that would shortchange employees.
Fair Hiring and Justified Termination:
Hiring and termination decisions must be made without regard to ethnicity, race, gender, sexual
preference or religious beliefs. HR must take precautions to eliminate any bias from the hiring
and firing process by making sure such actions adhere to strict business criteria.