Business ethics and corporate social responsibility

ETHICS IN HUMAN RESOURCE MANAGEMENT

Introduction
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Ethics ????
Ethics are considered the moral standards by which people judge behavior. behavior. Ethics are often summed up in what is considered the ³golden rule´²do rule´² unto others as you would have them do unto. unto.

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Hrm???? Hrm????
"The Process of analyzing and managing an organizations human resources needs to ensure satisfaction of its strategic objectives´

Ethics in human resource management 

large area of human relations management is concerned with various ethical issues, both on the part of upper±level management in its business upper± decisions and lower±level management in the treatment of individual lower± employees. employees. In making decisions the human resource manager should consider alternative solutions to the needs of the business as well as the effects the decisions will have on the lives of the employees. employees. Frequently a human resource manager will be given instructions from higher level management to take action which will be oppressive to the employees and the manager must either present arguments to higher management for alternate solutions which will have less impact on the employee morale or determine the best method for implementing the instructions which have been given. given. 

HR Ethics Activities 

Staffing and selection
Fostering the perception of fairness in the processes of recruitment and hiring of people. Formal procedures Interpersonal treatment Providing explanation 

Training
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. 

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

Reward and disciplinary systems
The organization swiftly and harshly punishes unethical conduct.

Employees rights and duties 
    

Employers rights and duties  

Right to work. Right to just remmuneration. remmuneration. Loyalty towards organisation. organisation. Right to participation. Freedom of speech. Right to healthy nd safe working condition. Right to privacy and to normal family life. 

  

No discrimination rules for recruitment and hiring. Duty to fair compensation. Duty to inform and to consult worker. Duty to improve quality of work. Requirement of the correct behavior at the workplace.

IMPORTANCE OF ETHICS IN HRM
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

HR ETHICAL ISSUES 
 

EMPLOYEE RESPONSIBILITY Responsibility to employer V/S Obligation to public safety. Responsibility towards oneself or towards family clashes with responsibility towards employer. An issue i.e. gaining increasing importance these days. 

CASH AND INCENTIVE PLANS

Annual incentive plans. LongLong-term incentive palns. Executive perquisites.

PERFORMANCE APPRAISAL 

Assessment of an individual¶s performance is based on observation and judgment. Yet HR managers assign performance on the basis of unrelated factors. Ethics should be a part of Performance appraisal. Objective of ethical performance reviews should be to provide an honest assessment of the performance.   

RACE, GENDER & DISABILITY 

Minorities should be respected and given fair treatment. Employees suffering from illness or disability should be treated equal. Sexual harassment issues should not be over looked.  

JOB DISCRIMINATION 

It refers to making adverse decision against employees 

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.

PRIVACY ISSUES
Use of technology at times breach the privacy of employees. Drug testing should be done only when it is relevant to the job. Protection to the whistle blowers.

SAFETY AND HEALTH 

Industrial work is hazardous. Accidents, 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 Risks. 2. Role of Government in Safety and Health.   

RESTRUCTURING AND LAYOFFS 

It should be constructed in the atmosphere of fairness and equity. Decisions should not be taken under personal grudges. Alternatives to layoffs should be tried.  

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

Whistle blowing in action
SR.NO. NAME OF THE ORGANISATIO N WHISTLE BLOWER CONSEQUENCES

1

Enron

Sherron Watkins

Liquidation of the company

2

Kellogg India

Senior executive (name not known)

Dismissal of two senior executive who were promoted for excellent performance a few month before Attack on the world trade centre, US

3

Director FBI,US

Coleen Rowley

4

World com

Cynthia cooper

Company gone bust

5

Xerox

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

6

Johnson and johnson,bayer India LG India

Installed whistle Blowing systems 10 -12 cases have been reported to head office, south Korea

No incident is reported

7

Not known

CODE OF ETHICS FOR HUMAN RESOURCE MANAGERS 

High standards of professional and personal conduct. 

Continuation of personal growths in the field of human resource. Upload all laws and regulations relating to employer¶s activities. Maintain the confidentiality of privileged information   

Refrain from using personal position for in appropriate gain

Example_

CODE OF CONDUCT IN TATA
For the company 


For the employees 
 

  

Customer satisfaction Accounting and financial reporting Interest of country 0pen market economy Unfair practises Enviornmental rules and regulations 



Moral and ethical standards NonNon-disclosure of important information about company Whistle blowing Protects the interest of company

Conclusion  

    

Hence, HR professionals are responsible for adding value to the organisations 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 for the profession by engaging in activities that enhance its credibility and value. Ethics ±branch of philosophy Highest standard of competence Individual leadership Fairness and justice Protect the interest of stakeholders Protect the rights of individuals

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