ETHICS IN HR

ABSTRACT

In any and every business, ethical considerations play a very important role. All
functions of a business organisation should be aligned with the ethical considerations
because that is where customers build trust and long term relations with the company.
In respect to this, ethics is not just about customer building, but also plays a significant
role in Human Resource Management.

In this article, we will look into the different ways we take forward the case of Ethical
Considerations in Human Resource Management in various companies. We will look
into whether or not this has helped companies to build better relationships with clients
and customers and also to see the future prospects of Ethics in Human Resource
Management.

INTRODUCTION

Human resource management deals with manpower planning and development related
activities in an organisation. Arguably it is that branch of management where ethics
really matter, since it concerns human issues especially those of compensation,
development, industrial relations and health and safety issues.

Employee rights and duties and freedom and discrimination at the workplace are issues
discussed and covered by most texts on the topic. Some argue that there are certain
things in employment relationships that are constant others disagree with the same. For
example, right to privacy, right to be paid in accordance with the work (fair
compensation) and right to privacy are some areas that cannot be compromised upon.

Hence, we can establish that Human Resource Management is a field which requires
proper ethical considerations in order to provide a fair chance to every potential
candidate to get a position in the organisation. In other words, it is an umbrella term
including various small areas where ethics are required.

BUSINESS ETHICS
By definition, business ethics refers to the standards for morally right and wrong
conduct in business. Law partially defines the conduct, but “legal” and “ethical” aren’t
necessarily the same. Business ethics enhances the law by outlining acceptable
behaviours beyond government control.

Corporations establish business ethics to promote integrity among their employees and
gain trust from key stakeholders, such as investors and consumers. While corporate
ethics programs have become common, the quality varies. According to the 2018 Global
Business Ethics Survey (GBES), less than one in four U.S. workers think their company
has a “well-implemented” ethics program.

There are multiple reasons why business ethics are important:

Business Ethics affect reputation

Brands are no longer owned only by the companies they represent. Employees,
consumers, and stockholders increasingly feel that a brand belongs to them too. And
hence, companies have to be accountable to these bodies. For this, they need to have an
ethical environment where all basic needs are taken into account so that good
reputation is maintained.

Good Business Ethics aid in Negotiations

When a company has a positive reputation, it encourages other businesses to negotiate
with it. No one wants to broker a deal with a company that may not make good on its
word. If both businesses understand the rules of the ethical game, they can make better,
stronger negotiations because they know they will get what they’ve been promised from
the deal.

Business ethics is an essential skill.

Almost every company now has a business ethics program. In part, that’s because
technology and digital communication have made it easier to identify and publicise
ethical missteps. To avoid the negative implications, companies are devoting more
resources to business ethics. In addition to establishing formal programs, companies are
creating ethical workplaces by hiring the right talent. “High integrity and honesty” is the
second-most important skill for business leaders, according to a recent survey.

ROLE OF ETHICS IN HR
The Human Resources team is responsible for maintaining a smooth fostering of good
diversity in the workplace. It is also responsible for setting proper standards for the
employees in the workplace.

All of these practices need to be ethical in nature as they are necessary for an
organisation’s positive drives. These professionals have to go after a good working
environment for everyone in the company and raise the bars for the current and
upcoming employees.

HRM ethics is responsible for-

● Basic human rights

● Civil and employment fight
● Safety in the workplace
● Privacy
● Justifiable treatment to employees like equity and equal opportunity
● Respect, fairness, and honesty based process

HOW HRM CAN PROMOTE ETHICS?

There are primarily three ways in which Human Resource Management

can employ ethics in the workplace:

Improving Recruitment and Selection Processes: It is the major duty and

responsibility of the Human Resource team to design a fair selection process which does
not discriminate against any form. HRs should also make sure that situational factors
like economic, social, technological factors are followed. The process of selection should
be done in a planned manner and illegal questions should be avoided.

Channelizing ethics training: Training should be given to the HR of

the organisation to do their HR work as per the HR ethics. HRs should also offer
training to the employees about the business ethics that are strictly followed by the
whole organisation. HR managers should also ensure that there are no pitfalls in the
performance appraisal system.
Incorporating rewards, disciplinary, fair, and transparent system: HRs should have
proper reward management programs. They should also facilitate and improve two-way
communication. Human resource managers should avoid any kind of discrimination
among the employees based on specific factors such as color, caste, culture,
appearances, religion, etc. Human resource management should ensure equal
opportunities for every employee for their effective development and advancement.

HOW TO IMPLEMENT ETHICS IN HR?

Defining terms is easier but implementing them is a task. Similar is the

case with Ethics in HR. Here, implementation of ethics sometimes leads to various
questions in the minds of the employees and the clients. But some ways in which ethics
can be employed in HR are mentioned below:

1. Stay informant of the laws

As a responsible representative of an organisation, you must differentiate between right

and wrong and make tough decisions whenever required. HR professionals have to
know how to make tough decisions and hold some people accountable whenever
necessary, and doing so will require a tremendous amount of confidence and courage.
This, however, requires a tremendous amount of innate authority and confidence. By
staying up-to-date with all the labour laws, you can be easier on top of such issues
whenever they come up. For instance, consider a situation where someone asks for a
short-term disability.

2. Give professional development a priority

This is a dynamic field in operation; it is integral to be versatile and open to challenges

your way for maximum development. There is a constant need for knowledge and skills
to stay up-to-date with such dynamics. One way you can stay ahead of the competition is
by participating in practical training programs. These can include things like HR
certifications and degrees, specialisations in workshops, etc. People in the HR domain
have to be on their feet and consult their managers before choosing any career path that
suits them.

3. Be an ethical leader in the organisation

Sometimes, conflicts between different employees cannot be taken care of. Hence, being
a leader in this industry will require you to display confidence and practical
communication skills through your overall behaviour and interaction with others. As per
Josephson Institute of Ethics at UC San Diego, the following components are
instrumental in a proper decision-making process-

Competency: The way of collecting and evaluating information, come up with

alternatives, keep potential risks and consequences at bay

Consciousness: Awareness to consistently act and apply different moral convictions to

regular behaviour

Commitment: Going for the right thing despite the cost it comes with

4. Understand the various conflict of interest that arise

These company conflicts are significant for the organisation since the wrong turn can
derail the company from fulfilling its objectives. HRs should adhere to and advocate the
use of published policies on conflicts of interest within the organisation and they should
prioritise their obligations toward identifying conflicts of interest they arise to disclose
them to the associated stakeholders.

5. Implementation of inclusion and diversity principles

Today, most discussions of inclusion are based on talks regarding class, gender, and
race. These are essential parts of the given principle and have to be taken care of
accordingly. This can be quickly done by communicating with company colleagues to
understand the company’s morals and values.

6. Keep company information safe and confidential

HR professionals have access to various statistics and records of the company.They have
to comply with moral and ethical norms to safeguard and protect the company’s
interests in the market. HRs should Acquire and disseminate information via ethical
and responsible means.

CONCLUSION

Through this article we conclude how important ethics is in business. Additionally, how
much weightage we give to ethics in HRM in particular. We have further discussed why
and how to employ ethics in Human Resource Management. This will help us to actually
implement these practices in real-time. In simple words, HR ethics can help one
understand the various factors that contribute to effective change within the
organisation.