The 5 E’s of HRGovernance by SABPP CEO, Marius Meyer. Where did it all go wrong?: Making HR Relevant in the organisation of the future.

1. 17 April 2017
Marius Meyer, CEO: SABPP
@SABPP1

2. Time for serious reflection

3. 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

4. Key points from reality
• No matter how good you think your HR
processes are, you can be caught napping
if you don’t keep up your environmental
scanning
• Our socio/political/economic environment is
radically reshaping HR in our organisations
• Management plays a key leadership role
that cannot be delegated to HR
• Can HR step up as HR Governors?

5. 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)

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

7. Current Current reality
• Fraud
• Corruption
• Theft
• Espionage
• Sabotage
• Money laundering
• Lies
• Crime
• Conflict of interest
• Cyber crime
• Nepotism
• Favouratism
• Price fixing
• Exploitation
• Mismanagement
• Poor governance
• Plagiarism
• Bribery

9. Getting the balance right
Professional
knowledge and
standards
(competence)
Professional ethics
(conscience)
Doing good
work
(excellence)
Ethical
behaviour
and conduct
(ethics)
Accountability Responsibility Fairness Transparency

10. POSITIONING GRC IN COMPANIES:
ROLE OF MANAGERS
• E T H I C S
GOVER-
NANCE
RISK
COM-
PLIANCE
LEADERSHIP
MANAGEMENT
CULTURE
CONTROLS

11. Draft King IV™ – 3 principles
The governing body should:
1. Set the tone and lead ethically and
effectively.
2. Ensure that the organisation’s ethics is
managed effectively.
3. Ensure that the organisation is a
responsible citizen.
IODSA (2016)

12. King IV™ Ethical characteristics
Indepen-
dence
Inclusivity
Diligence Informed Courage
Compe-
tence
IODSA (2016)

13. King IV™ - Role of governing body: Ethics
• Set the example and tone for an ethical culture.
• Provide clear strategic direction on the management of the organisation’s
ethics.
• Ensure that ethics, values, norms are clearly articulated in codes of conduct,
and in its policies.
• Ensure that ethics policy encompasses the relationship with internal & external
stakeholders, including the conduct of organisations within the supply chain +
address ethical risk profile of organisation.
• Ensure that structures are in place to give effect to the organisation’s ethics,
values, norms, including safe reporting mechanisms & appropriate oversight &
resources for ethics management.
• Oversee that there are processes to ensure that employees, business
associates, contractors and suppliers are familiar with the organisation’s ethics
norms as set out in codes of ethics & conduct, e.g. incorporating these in
employment & supply contracts.
• Oversee that recruitment processes, promotion criteria and performance
evaluations of employees recognise adherence to ethics norms (codes,
sanctions).
• Disclosure of structures, processes for ethics management + monitoring.
IODSA (2016)

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

15. Responsible corporate citizenship
Governing body should ensure that the organisation
is a responsible corporate citizen:
1. Provide strategic direction for organisation to be
a responsible corporate citizen and to respond to
economic, social, environmental outcomes of its
activities;
2. Oversee that the performance as a corporate
citizen is monitored against targets;
3. Disclosure of structures, processes, monitoring.
IODSA (2016)

16. Corporate citizenship include:
• Sustainable development
• Human rights
• Impact on communities
• Protection of the natural environment
• Fair labour practices
• Fair & responsible remuneration
• Employee wellbeing & development
• Employee & public health & safety
• Compliance with legislation related to E, S, E
• Prevention, detection & response to fraud/corruption
• Economic transformation, including EE & BEE
• Fair treatment of customers
• Fair competition with industry peers
• Fair treatment of associates, suppliers, contractors
• Responsible tax policies
Source: King IV™

17. HR Standards Files
13 standards (2013) 27 standards (2014)

18. BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
Strategic
HRM
Talent
Management
HR Risk
Management
HR ARCHITECTURE
I
HR VALUE &
DELIVERY PLATFORM
Work-
force
planning
Learning
&
Deve-
lopment
Perfor-
mance
Mana-
gement
Reward
&
Recogni-
tion
Em-
ployee
wellness
Employ-
ment
Rela-
tions
Organi-
sation
Deve-
lopment
HR Service
Delivery
HR Technology
(HRIS)
Prepare
Imple-
ment
Review ImproveHR MEASUREMENT
HR Audit: Standards & Metrics
HRCOMPETENCIES
© SABPP HR MANAGEMENT SYSTEM STANDARDS

19. BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
Strategic
HRM
5.6
Talent
Management
4.3
HR Risk
Management
6.1
FUNCTIONAL & CROSS FUNCTIONAL HR VALUE CHAIN
HR VALUE &
DELIVERY PLATFORM
Work-
force
Planning
5.4
Learning
5.8
Perfor-
mance
5.7
Reward
6.1
Well-
ness
6.5
ERM
6.6
OD
5.3
HR Service
Delivery
5.3
HR Technology
(HRIS) 5.4
Prepare
Imple-
ment
Review ImproveMEASURING HR SUCCESS 4.3
HR Audit: Standards & Metrics
HRCOMPETENCIES
AUDITED RATINGS – OVERALL AVERAGE
(27 companies audited)

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. Biggest lesson in ethics
You can get away doing something unethical
over the short term.
But how long will it last? A day, a week, a
month, a year, a few years…
Eventually the truth comes out.
It takes years to build a good reputation and
only a moment to destroy it.
Build and maintain your ethical reputation.

22. 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

23. Do the right thing

24. © SABPP (2018)
GLOBAL
CONTINENT
UN
REGIONAL
NATIONAL/
SECTOR/INDUSTRY
ORGANI-
SATIONAL
Human
UN
WEFIIRF
ILO
ISO
OECD
IMF
WB
GRI
AU EUSADCBRICS
NDP
Laws
King IV
Risks
DoL
DHET
NQF
SAQA
Standards
6LEVELSOFHRGOVERNANCE

25. 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

26. Socio-economic conditions

28. Performance + Compliance

29. South African #LeadershipStandard
©SABPP (2017)

30. Time for HR Leadership
The 5 e’s of HR Leaders as stewards of
HR Governance:
• Ethics
• Effectiveness
• Education
• Empowerment
• Engagement

31. Conclusion
HR needs to step up in fulfilling our HR
Governance role.
Best wishes with your HR work. Let us create
future-fit ethical and effective organisations.
If you need more information, contact me on marius@sabpp.co.za

32. We set HR standards!
professional@sabpp.co.za (Professional Registration)
hraudit@sabpp.co.za (HR Audits)
events@sabpp.co.za (Stakeholder Relations)
hrri@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
Tel: 011 045-5400 or (010) 007 5906
Cel: 082 859 3593 (Marius Meyer)