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This presentation gives an insight into the basics of business ethics

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  1. 1. ETHICS IN HRM <ul><li>What does it mean to be ethical? Is it simply complying with all laws? </li></ul><ul><ul><li>Ethics can be defined as the moral values, rules, or standards governing the conduct of a particular group, profession, or culture. </li></ul></ul><ul><ul><li>Thus, group, organization, professional, and cultural ethics all co-exist with one another. </li></ul></ul><ul><ul><li>Together, they influence the set of values you adopt to define your own code of ethics: Being personally ethical means acting in accordance with your own personal code of ethics. </li></ul></ul><ul><ul><li>Ethical dilemmas arise when your own ethical standards conflict with those of some other entity (e.g., your employer, a customer, etc.). </li></ul></ul>
  2. 2. ETHICS IN HRM <ul><li>Ethical Responsibilities for Managers </li></ul><ul><ul><li>Rule Number 1: You are always responsible for your own actions. </li></ul></ul><ul><ul><li>Rule Number 2: You are equally responsible for actions you initiate and undertake at the direction of others. You cannot use the excuse that you were “just following orders”. </li></ul></ul><ul><ul><li>Rule number 3: You cannot blame others (co-workers, clients) for your unethical behavior. </li></ul></ul><ul><ul><li>Rule Number 4: Unethical actions taken by your subordinates at your direction makes you just as unethical if not more so because you have abused your power within the organization. </li></ul></ul><ul><ul><li>Rule Number 5: You are responsible for your actions as part of a group. Because of diffusion of responsibility, groups often make riskier decisions than individuals do (called the “risky shift phenomenon”). </li></ul></ul><ul><ul><li>Rule Number 6: Inaction can be as unethical as action if your inaction results in unethical behavior. </li></ul></ul>
  3. 3. ETHICS IN HRM <ul><li>When do you know when you are being unethical? </li></ul><ul><ul><li>Is it legal? </li></ul></ul><ul><ul><li>Is it balanced? Is it fair to all concerned in the short term as well as the long term? </li></ul></ul><ul><ul><li>Does it pass the smell test? How does it make you feel? </li></ul></ul>
  4. 4. ETHICS IN HRM <ul><li>What does one do to be an ethical HRM manager? </li></ul><ul><li>One source is the Code of Ethical Conduct for the Society for Human Resource Management. </li></ul><ul><ul><li>PROFESSIONAL RESPONSIBILITY </li></ul></ul><ul><ul><li>Core Principle </li></ul></ul><ul><ul><li>As HR professionals, we are responsible for adding value to the organizations we serve and contributing to the ethical success of those organizations. We accept professional responsibility for our individual decisions and actions. We are also advocates for the profession by engaging in activities that enhance its credibility and value. </li></ul></ul><ul><ul><li>Intent </li></ul></ul><ul><ul><li>To build respect, credibility and strategic importance for the HR profession within our organizations, the business community, and the communities in which we work. </li></ul></ul><ul><ul><li>To assist the organizations we serve in achieving their objectives and goals. </li></ul></ul><ul><ul><li>To inform and educate current and future practitioners, the organizations we serve, and the general public about principles and practices that help the profession. </li></ul></ul><ul><ul><li>To positively influence workplace and recruitment practices. </li></ul></ul><ul><ul><li>To encourage professional decision-making and responsibility. </li></ul></ul><ul><ul><li>To encourage social responsibility. </li></ul></ul>
  5. 5. ETHICS IN HRM <ul><li>Code of Ethical Conduct for the Society for Human Resource Management </li></ul><ul><li>PROFESSIONAL DEVELOPMENT </li></ul><ul><li>Core Principle </li></ul><ul><li>As professionals we must strive to meet the highest standards of competence and commit to strengthen our competencies on a continuous basis. </li></ul><ul><li>Intent </li></ul><ul><li>To expand our knowledge of human resource management to further our understanding of how our organizations function. </li></ul><ul><li>To advance our understanding of how organizations work (&quot;the business of the business&quot;). </li></ul>
  6. 6. ETHICS IN HRM <ul><li>Code of Ethical Conduct for the Society for Human Resource Management </li></ul><ul><li>ETHICAL LEADERSHIP </li></ul><ul><li>Core Principle </li></ul><ul><li>HR professionals are expected to exhibit individual leadership as a role model for maintaining the highest standards of ethical conduct. </li></ul><ul><li>Intent </li></ul><ul><li>To set the standard and be an example for others. </li></ul><ul><li>To earn individual respect and increase our credibility with those we serve. </li></ul>
  7. 7. ETHICS IN HRM <ul><li>Code of Ethical Conduct for the Society for Human Resource Management </li></ul><ul><li>FAIRNESS AND JUSTICE </li></ul><ul><li>Core Principle </li></ul><ul><li>As human resource professionals, we are ethically responsible for promoting and fostering fairness and justice for all employees and their organizations. </li></ul><ul><li>Intent </li></ul><ul><li>To create and sustain an environment that encourages all individuals and the organization to reach their fullest potential in a positive and productive manner. </li></ul>
  8. 8. ETHICS IN HRM <ul><li>Code of Ethical Conduct for the Society for Human Resource Management </li></ul><ul><li>CONFLICTS OF INTEREST </li></ul><ul><li>Core Principle </li></ul><ul><li>As HR professionals, we must maintain a high level of trust with our stakeholders. We must protect the interests of our stakeholders as well as our professional integrity and should not engage in activities that create actual, apparent, or potential conflicts of interest. </li></ul><ul><li>Intent </li></ul><ul><li>To avoid activities that are in conflict or may appear to be in conflict with any of the provisions of this Code of Ethical and Professional Standards in Human Resource Management or with one's responsibilities and duties as a member of the human resource profession and/or as an employee of any organization. </li></ul>
  9. 9. ETHICS IN HRM <ul><li>Code of Ethical Conduct for the Society for Human Resource Management </li></ul><ul><li>USE OF INFORMATION </li></ul><ul><li>Core Principle </li></ul><ul><li>HR professionals consider and protect the rights of individuals, especially in the acquisition and dissemination of information while ensuring truthful communications and facilitating informed decision-making. </li></ul><ul><li>Intent </li></ul><ul><li>To build trust among all organization constituents by maximizing the open exchange of information, while eliminating anxieties about inappropriate and/or inaccurate acquisition and sharing of information </li></ul>
  10. 10. ETHICS IN HRM <ul><li>The 10 most serious ethical situations reported by HR managers </li></ul><ul><ul><li>Hiring, training, or promotion based on favoritism (friendships or relatives): 30.7%. </li></ul></ul><ul><ul><li>Allowing differences in pay, discipline, promotion, etc., due to friendships with top management: 30.7%. </li></ul></ul><ul><ul><li>Sexual Harassment: 28.4%. </li></ul></ul><ul><ul><li>Sex discrimination in promotions: 26.9%. </li></ul></ul><ul><ul><li>Using discipline inconsistently: 26.9%. </li></ul></ul><ul><ul><li>Not maintaining confidentiality: 26.4%. </li></ul></ul><ul><ul><li>Sex discrimination in compensation: 25.8%. </li></ul></ul><ul><ul><li>Non-performance factors (e.g., race) used in appraisals: 23.5%. </li></ul></ul><ul><ul><li>Arrangements with vendors or consulting agencies that result in personal gain: 23.1%. </li></ul></ul><ul><ul><li>Sex discrimination in recruitment or hiring: 22.6%. </li></ul></ul>