business ethics n hrm

8/8/2019 business ethics n hrm

1/22

Business ethics and corporateBusiness ethics and corporate

social responsibilitysocial responsibility


2/22

ETHICS IN HUMANETHICS IN HUMAN

RESOURCE MANAGEMENTRESOURCE MANAGEMENT


3/22

IntroductionIntroduction

EthicsEthics ???????? EthicsEthics areare consideredconsidered thethe moralmoral standardsstandards byby whichwhich peoplepeople judgejudge behaviorbehavior..

EthicsEthics areare oftenoften summedsummed upup inin whatwhat isis consideredconsidered thethe goldengolden ruleruledodountounto othersothers asas youyou wouldwould havehave themthem dodo untounto..

HrmHrm???????? "The"The ProcessProcess ofof analyzinganalyzing andand managingmanaging anan organizationsorganizations humanhuman resourcesresources

needsneeds toto ensureensure satisfactionsatisfaction ofof itsits strategicstrategic objectivesobjectives


4/22

Ethics in human resource managementEthics in human resource management

largelarge areaarea of of humanhuman relationsrelations managementmanagement isis concernedconcerned withwith variousvariousethicalethical issues,issues, bothboth onon thethe partpart ofof upperupperlevellevel managementmanagement inin itsits businessbusinessdecisionsdecisions andand lowerlowerlevellevel managementmanagement inin thethe treatmenttreatment ofof individualindividualemployeesemployees.. InIn makingmaking decisionsdecisions thethe humanhuman resourceresource managermanager shouldshouldconsiderconsider alternativealternative solutionssolutions toto thethe needsneeds ofof thethe businessbusiness asas wellwell asas thetheeffectseffects thethe decisionsdecisions willwill havehave onon thethe liveslives ofof thethe employeesemployees..

FrequentlyFrequently aa humanhuman resourceresource managermanager willwill bebe givengiven instructionsinstructions fromfromhigherhigher levellevel managementmanagement toto taketake actionaction whichwhich willwill bebe oppressiveoppressive toto thethe

employeesemployees andand thethe managermanager mustmust eithereither presentpresent argumentsarguments toto higherhighermanagementmanagement forfor alternatealternate solutionssolutions whichwhich willwill havehave lessless impactimpact onon thetheemployeeemployee moralemorale oror determinedetermine thethe bestbest methodmethod forfor implementingimplementing thetheinstructionsinstructions whichwhich havehave beenbeen givengiven..


5/22

HREthics ActivitiesHREthics Activities

Staffing and selectionStaffing and selection

Fostering the perception of fairness in the processes of recruitment and hiring of people.Fostering the perception of fairness in the processes of recruitment and hiring of people.

Formal proceduresFormal procedures

Interpersonal treatmentInterpersonal treatment

Providing explanationProviding explanation

TrainingTraining

How to recognize ethical dilemmas.How to recognize ethical dilemmas.

How to use ethical frameworks (such as codes of conduct) to resolve problems.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.How to use HR functions (such as interviews and disciplinary practices) in ethical ways.

Performance appraisalPerformance appraisal

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

Reward and disciplinary systemsReward and disciplinary systems

The organization swiftly and harshly punishes unethical conduct.The organization swiftly and harshly punishes unethical conduct.


6/22

Employees rights and dutiesEmployees rights and duties Employers rights and dutiesEmployers rights and duties

Right to work.Right to work.

Right to justRight to just remmunerationremmuneration..

Loyalty towardsLoyalty towards organisationorganisation..

Right to participation.Right to participation.

Freedom of speech.Freedom of speech.

Right to healthyRight to healthy ndnd safesafe

working condition.working condition.

Right to privacy and toRight to privacy and to

normal family life.normal family life.

No discrimination rules forNo discrimination rules forrecruitment and hiring.recruitment and hiring.

Duty to fair compensation.Duty to fair compensation.

Duty to inform and toDuty to inform and to

consult worker.consult worker. Duty to improve quality ofDuty to improve quality of

work.work.

Requirement of the correctRequirement of the correct

behavior at the workplace.behavior at the workplace.


7/22


8/22

HRETHICAL ISSUESHRETHICAL ISSUES

EMPLOYEE RESPONSIBILITYEMPLOYEE RESPONSIBILITY

Responsibility to employer V/S Obligation to public safety.Responsibility to employer V/S Obligation to public safety.

Responsibility towards oneself or towards family clashesResponsibility towards oneself or towards family clasheswith responsibility towards employer.with responsibility towards employer.

An issue i.e. gaining increasing importance these days.An issue i.e. gaining increasing importance these days.


9/22

CASHAND INCENTIVEPLANSCASHAND INCENTIVEPLANS

Annual incentive plans.Annual incentive plans.

LongLong--term incentive palns.term incentive palns.

Executive perquisites.Executive perquisites.


10/22

PERFORMANCE APPRAISALPERFORMANCE APPRAISAL

Assessment of an individuals performance is based on observationAssessment of an individuals performance is based on observation

and judgment.and judgment.

Yet HRmanagers assign performance on the basis of unrelatedYet HRmanagers assign performance on the basis of unrelated

factors.factors.

Ethics should be a part of Performance appraisal.Ethics should be a part of Performance appraisal.

Objective of ethical performance reviews should be to provide anObjective of ethical performance reviews should be to provide an

honest assessment of the performance.honest assessment of the performance.


11/22

RACE, GENDER& DISABILITYRACE, GENDER& DISABILITY

Minorities should be respected and given fair treatment.Minorities should be respected and given fair treatment.

Employees suffering from illness or disability should be treated equal.Employees suffering from illness or disability should be treated equal.

Sexual harassment issues should not be over looked.Sexual harassment issues should not be over looked.


12/22

JOB DISCRIMINATIONJOB DISCRIMINATION

It refers to making adverse decision against employeesIt refers to making adverse decision against employees

The main 4 common discriminatory practices are:The main 4 common discriminatory practices are:--

1. Individuals discriminate on the basis of stereotype.1. Individuals discriminate on the basis of stereotype.

2. Organizations also discriminate.2. Organizations also discriminate.

3. Discrimination on the ground of sex and race.3. Discrimination on the ground of sex and race.4. Workplace Harassment.4. Workplace Harassment.


13/22

PRIVACYISSUESPRIVACYISSUES

Use of technology at times breach the privacy of employees.Use of technology at times breach the privacy of employees.

Drug testing should be done only when it is relevant to the job.Drug testing should be done only when it is relevant to the job.

Protection to the whistle blowers.Protection to the whistle blowers.


14/22

SAFETYANDHEALTHSAFETYANDHEALTH

Industrial work is hazardous.Industrial work is hazardous.

Accidents, injuries and illnesses occur.Accidents, injuries and illnesses occur.

New categories of accident and illness have emerged, includingNew categories of accident and illness have emerged, includingthe fast growing job safety problem.the fast growing job safety problem.

Ethical Issues involved here:Ethical Issues involved here:

1. Assessment ofRisks.1. Assessment ofRisks.

2. Role of Government in Safety and Health.2. Role of Government in Safety and Health.


15/22

RESTRUCTURING AND LAYOFFSRESTRUCTURING AND LAYOFFS

It should be constructed in the atmosphere of fairnessIt should be constructed in the atmosphere of fairness

and equity.and equity.

Decisions should not be taken under personalDecisions should not be taken under personal

grudges.grudges.

Alternatives to layoffs should be tried.Alternatives to layoffs should be tried.


16/22

Ethical committeesEthical committees

Many companies have ethics committee to advise on ethical issues .such aMany companies have ethics committee to advise on ethical issues .such a

committee can be a highcommittee can be a high level one comprising the board of directors , chaired by thelevel one comprising the board of directors , chaired by the

CEO of the company.CEO of the company.

Such committees help the company in establishing policies in new orSuch committees help the company in establishing policies in new oruncertain areas, advise the board of directors on ethical issues, and oversee theuncertain areas, advise the board of directors on ethical issues, and oversee the

enforcement of the code of ethics.enforcement of the code of ethics.

Following are the committeesFollowing are the committees

1.1.Ethics Hot LinesEthics Hot Lines

2.2.Whistle BlowingWhistle Blowing


17/22

Whistle blowing in actionWhistle blowing in action

SR.NO.SR.NO. NAME OF THENAME OF THE

ORGANISATIOORGANISATIO

NN

WHISTLE BLOWERWHISTLE BLOWER CONSEQUENCESCONSEQUENCES

11 E

nronE

nron Sherron WatkinsSherron Watkins Liquidation of theLiquidation of thecompanycompany

22 Kellogg IndiaKellogg India Senior executiveSenior executive

(name not known)(name not known)

Dismissal of two seniorDismissal of two senior

executive who wereexecutive who were

promoted for excellentpromoted for excellent

performance a few monthperformance a few month

beforebefore

33 Director FBI,USDirector FBI,US Coleen Rowley Coleen Rowley Attack on the world tradeAttack on the world trade

centre, UScentre, US


18/22

44 World comWorld com Cynthia cooperCynthia cooper Company gone bustCompany gone bust

55 XeroxXerox -- CFO made to pay $5.5CFO made to pay $5.5million in fines andmillion in fines and

banned by the SE frombanned by the SE from

practicing accountancypracticing accountancy

66 Johnson andJohnson and

johnson,bayerjohnson,bayer

IndiaIndia

Installed whistleInstalled whistle

Blowing systemsBlowing systems

No incident is reportedNo incident is reported

77 LG IndiaLG India 1010 --12 cases have12 cases have

been reported tobeen reported tohead office, southhead office, south

KoreaKorea

Not knownNot known


19/22

CODEOFETHICSFORHUMANRESOURCECODEOFETHICSFORHUMANRESOURCE

MANAGERSMANAGERS

High standards of professional and personal conduct.High standards of professional and personal conduct.

Continuation of personal growths in the field of human resource.Continuation of personal growths in the field of human resource.

Upload all laws and regulations relating to employers activities.

Maintain the confidentiality of privileged information

Refrain from using personal position for in appropriate gain


20/22

Example_Example_


21/22

CODEOFCONDUCTINTATACODEOFCONDUCTINTATA

For the companyFor the company

Customer satisfactionCustomer satisfaction

Accounting and financialAccounting and financial

reportingreporting

Interest of countryInterest of country

0pen market economy0pen market economy

Unfair practisesUnfair practises

Enviornmental rules andEnviornmental rules and

regulationsregulations

For the employeesFor the employees

Moral and ethical standardsMoral and ethical standards

NonNon--disclosure of importantdisclosure of important

information about companyinformation about company

Whistle blowingWhistle blowing

Protects the interest ofProtects the interest of

companycompany


22/22

business ethics n hrm

Documents

Transcript of business ethics n hrm