Slides by Marius Meyer – Role of ethics in HR Standards, Competence & Governance

1. Marius Meyer
@SABPP1

2. FOLLOW US ON :
@sabpp1 SABPP
@siphiwemoyo Chairman
@mariussabpp CEO
@xolani_mawande COO
@SiphiweMashoene Events

3. Fraud and corruption
What is wrong with us in South Africa? Why is
fraud and corruption so high?
What are we doing as HR in improving the
status quo?

4. Why is governance
important?

5. Fraud starts with HR …

6. It is about honesty
“Honesty is the first
chapter in the book of
wisdom.”
Thomas Jefferson

7. New SABPP Model: HR Voice for
Professionals
Human resource
development
Research - info
Value &
visibility
Open for
alliances
Innovation
CPD
Excel-
lence
Quality
assurance
Learning
growth &
develop-
ment
Knowledge
Self-governance Duty to society
Ethics

8. SABPP VALUE PROPOSITION:
Products/Services to advance HR profession
RECOGNITION =
PROFESSIONAL STATUS
RESOURCES =
PRODUCTS/SERVICES
RESEARCH =
INFORMATION
• Professional registration
• NLRD Upload (SAQA)
• RPL
• Awards
• Advocacy
• HR Assessors/Moderators
registration
• Accreditation of providers
• University accreditation
• HR Competency Model
• Social media discussions
• Knowledge Centre
• Booklets/DVDs
• Guides/toolkits
• Charts/posters
• Fact sheets
• One-stop info
• Updates (laws, trends)
• Ethics help-line
• Newsletters
• Website
• HR Internships/jobs
• HR policies
• Mentoring
• Workshops/seminars
• Access to alliances
• Event/product discounts
• CPD
• Students
• Research papers
• Position papers
• Books
• Articles
• Cases
• Benchmarking
• Magazines
• Labour market
information

9. NEXT STEP – BECOME A
REGISTERED HR PROFESSIONAL
Apply to
professional@sabpp.co.za
so that we can register you
as an HR professional in
accordance with NQF Act
(Act no 67 of 2008). You
sign the ethics code.

10. SABPP Professional Values
RESPONSIBILITY
I
RESPECT
INTEGRITY
COMPETENCE

11. SOUTH AFRICAN HR COMPETENCY MODEL
STRATEGY
TALENT
MANAGEMENT
HR GOVERNANCE, RISK,
COMPLIANCE
ANALYTICS & MEASUREMENT
HR SERVICE DELIVERY
5 HR
CAPABILITIES
LEADERSHIP & PERSONAL CREDIBILITY
ORGANISATIONAL CAPABILITY
SOLUTION CREATION & IMPLEMENTATION
INTERPERSONAL & COMMUNICATION
CITIZENSHIP FOR FUTURE: INNOVATION, TECHNOLOGY, SUSTAINABILITY
CORE
COMPETENCIES
HR & BUSINESS KNOWLEDGE
DUTY TO SOCIETY
ETHICS
PROFESSIONALISM
4
PILLARS

12. Definition of Ethics Competence
Behaving ethically as HR Professionals and
living our professional code in driving ethics
and values within our organisations, being
champions of ethics, integrity and honesty in
the workplace.
SABPP HR Competency Model (2013)

13. Ethics Competence Outputs
SABPP HR Competency Model (2013)
Your
organisation
Your profession
You

14. ORGANISATION SYSTEM
• E T H I C S
GOVER-
NANCE
RISK
COM-
PLIANCE
LEADERSHIP
MANAGEMENT
CULTURE
CONTROLS

15. “Good human
resource
management is
imperative for
good governance”
Mervin King

16. Outline of King III
Chapter 1:
ETHICAL LEADERSHIP &
CORPORATE CITIZENSHIP
Chapter 3:
Audit
Committees
Chapter 4:
Governance of
risk
Chapter 5:
Governance of
IT
Chapter 6:
Compliance
with L, R, C & S
Chapter 7:
Internal
audit
Chapter 8:
Governing
Stakeholder
Relationships
Chapter 2:
Board &
directors
Chapter 9:
Integrated
Reporting &
disclosure

17. Top management perspective
“The human resource professional in
an organisation needs to be an
integral part of the leadership and
the ‘right hand’ of the chief
executive. Establishing and sustaining
an ethical ethos, the HR professional
must work closely with the executive
leadership team to define and
promote the culture of an
organisation based on the underlying
values and then entrench the culture
through all the touch points in the
human capital value chain.”
Edward Kieswetter, CEO: Alexander Forbes

18. HR Standards Files
13 standards (2013) 19 standards (2014)

19. BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
❶ Strategic
HRM
❷ Talent
Management
❸ HR Risk
Management
HR ARCHITECTURE
HR VALUE &
DELIVERY PLATFORM
❹
Work-
force
planning
❺
Learning
❻
Perfor-
mance
❼
Reward
❽
Well-
ness
❾
ERM
❿
OD
⓫ HR Service
Delivery
⓬
HR Technology
(HRIS)
Prepare
Imple-
ment
Review Improve⓭ HR MEASUREMENT
HR Audit: Standards & Metrics
HRCOMPETENCIES
SABPP HRM SYSTEM STANDARDS MODEL

20. Ethics in the HR Standards
3.3.1 Position HR as a strategic partner in the risk governance structures
and processes of the organisation.
6.2.4 Ensure fair, ethical and organisational cultural practices focusing on
the achievement of performance targets in a sustainable way.
7.2.2 Deliver a fair & equitable reward system and process that is ethical,
cost effective and sustainable.
7.2.4 Ensure compliance with organisational governance principles and
practices aligned to national and relevant international governance codes
of practice and relevant legislation.
10.3.2 Ethics of interventions is observed.
11.3.7 Provide independent professional oversight, guidance and
consulting with regard to HR policy, strategy and organisational people
practices and ethical values.
National HR Management Standards (2013) SABPP.

21. Conflict of interest
Director
Manager
Employee
Interest
Organisa-
tion
Interest
CONFLICT OF INTEREST
Personal
Interest
Others’
Interest

22. “People and behaviour
are often the biggest
risks”
• Critical to include
people risks in a
company’s risk
management plan
• HR need to be the
eyes & ears for people-
related governance &
compliance

23. HR Risk?

24. SABPP HR Risk Study
Source: SABPP (2010)

25. H R - R I S K S
• Safety - accidents
• Skills shortages/gaps
• Incompetence
• Employee
disengagement
• Strikes & poor
employment
relationships
• Fraud/corruption
• Stress
• Staff turnover
• Low staff satisfaction –
impact on customer
satisfaction
• Cyber security
• Conflict/disputes
• Diversity problems
• Sexual harassment
• Expatriate issues
• Non-compliance

26. Hiring /
Retaining
Empowerment
Fraud &
Corruption
Hiring / Retaining
Leadership /
Performance Mgmt.
Development /
Empowerment
People Costs
OH&S
and Security
Corporate Social
Resp.
The risk that the company does not have the right people in the right
place to reach its targets due to a lack of adequate processes/systems
and management commitment ("culture").
The risk that people are not aligned with the company goals and
therefore cannot contribute to achieving company targets.
The risk that people do not have the knowledge, skills or motivation to
effectively carry out their responsibilities in current and future
positions.
The risk that labour costs (direct and indirect) are not optimised and
adequately controlled due to deficiencies in the organization, industrial
relations and compliance with laws and internal/external regulations.
The risk that the company does not adequately protect people from
injury, illness, fatality; and that adverse effects such as hijacking,
kidnapping and blackmailing etc. occur to the company.
The risk that the company compromises its "licence to operate" due to
neglecting stakeholder relations.
Social
Security
Health &
Safety
Personal
Security
The “new” HR Risks for the Generic Risk Model
Business Risk Management - Holcim
The risk that fraudulent activities occur.Fraud &
Corruption

27. Ethics Reporting

28. Ethics Management Process …
Develop or revise code of ethics
& processes
Build an ethical
culture
Integrate
ethical
standards
Assess ethics
risk and
opportunities
Report & Disclose
Reference: Ethics SA www.ethicssa.org

29. Guidelines for HR
• Ethical organisation culture
• Explicit values – make alive
• Leaders actively working against fraud,
behaving in an ethical way
• Ethics and anti-fraud orientation and training
• Recognise and reward good ethics
• Communication - publicity
• Put procedures and controls in place
• Take strong action if things go wrong
• Evaluate strengths/gaps of your system

30. Conclusion
HR has a key role in infusing ethics in our
work and governance. Create a robust system
and culture to prevent fraud and corruption.
Best wishes with your ethics work. Let us
position ethics as a key component of sound
HR practice and standards.

31. We set HR standards!
professional@sabpp.co.za (Professional Registration)
hraudit@sabpp.co.za (HR Standards & Audits)
xolani@sabpp.co.za (Operations)
events@sabpp.co.za (Projects/Marketing)
penny@sabpp.co.za (Research)
naren@sabpp.co.za (Learning & Quality)
marius@sabpp.co.za (Strategy inputs)
voice@sabpp.co.za (Social media)
Website: www.sabpp.co.za Blog: hrtoday.me
Office: 8 Sherborne Str, Parktown, South Africa
Tel: +27 11 045 5400 Fax: +27 482-4830
Cel: 082 859 3593 (Marius Meyer)