Why Ethics in HR?

Examples of Ethical
Violation
Possibility of Ethical
Sustenance in HR
Blueprint for Ethically
Enlightened Future

ETHICS IN HR
ABHISHEK KANSAL (2013PGP001) | ASHWIN M. PHILIPOSE (2013PGP009)| DIPAK BAJAJ (2013PGP017)
MANASH J. RABHA (2013PGP032) | NEHA S. UPADHYAY (2013PGP037) | PRIYA AGARWAL (2013PGP041)
S C CHAKRAVARTHI V (2013PGP043) | NINAD SHUKLA (2013PGP049) | VIVEKANAND TYAGI (2013PGP058)

WHY ETHICS IN HR?

Ethics is not just a theoretical concept but is essential to make businesses work
The decisions and the activities of the human resource personnel is usually full of ethical
consequences
Human Resources department is expected to effectively and competently recruit, hire
and train the most appropriate employees
With the globalization of commerce and the rise of increasingly large, complex
multinational companies, it is expected from the HR managers to create harmony within
the company and to ensure the company is operating within acceptable practices in each
country in which it does business
Any type of ethical misconduct on behalf of the Human Resources department can have
legal consequences for the overall business if not dealt with

 Accepting payoffs

EXAMPLES OF ETHICAL
VIOLATION IN HR
PRACTICES

Discrimination in hiring
Discrimination in growth opportunities, rewards & recognition
Sharing personal information
Not keeping confidences
Deliberate deception
Disregard of company policy
Lack of cultural awareness
Difference in compensation

SPECIFIC OBSERVED UNETHICAL

BEHAVIOURS*

*From a

Abusive or intimidating behavior toward employees

21%
Lying to employees, customers, vendors, or to the public
19%
A situation that places employee interests over organizational interests
18%
Violations of safety regulations
16%
Misreporting of actual time worked
16%
E-mail and Internet abuse
13%
Discrimination on the basis of race, color, gender, age, or similar
categories
12%
Stealing or theft
11%
Sexual harassment
9%
Provision of goods or services that fail to meet specifications
8%
Misuse of confidential information
7%
Alteration of documents
6%
Falsification or misrepresentation of financial records or reports 5%
Improper use of competitors inside information
4%
Price fixing
3%
KPMG
report,
the table
presents
theorpercentage
employees
Giving
or accepting
bribes,
kickbacks,
inappropriateof
gifts
3% observing

various unethical behaviors at work

THE WALMART CASE

Discrimination in hiringDuke vs Wal-Mart Stores Inc. case
Case against retail giant for showing gender
discrimination in pay and promotion policies
and practices in Wal-Mart stores
Wal-Mart in GermanyCase of restricting vs. protecting privacy of employees

LESSONS FROM
THE MAHABHARAT

THE CHOICE OF
THE PRINCE

 Create a Code of Conduct

PREVENTION OF
UNETHICAL
BEHAVIOUR

Lead by example
Appreciate employees for ethical behaviour
Organize talks on Ethics
Create Checks and Balances
Hire for values
Conduct an ethics audit
Incorporate consideration of ethics into performance reviews

POSSIBILITY OF
ETHICAL
Ethics can be sustained
in the organization by adopting
SUSTENANCE
The top management should be committed to ethical behavior and be role models

the following practices:

The organization should evolve Codes of Ethics for its employees and enforce them
Ethics Committee should be formed with top executives as members to advice on ethical
issues
Company journals to publish articles on ethical issues and pose hypothetical ethical
dilemmas and discussions on how to resolve these
An Ethics Office with Ethics Officers to oversee the process and help communicate policy
to employees
Organize Employee Ethics Training which can play an integral role in ensuring compliance
with ethics code
A disciplinary system to deal ethical violations promptly and decisively

FOSTERING
EMPLOYEE
PERCEPTION OF
FAIRNESS
ENSURING FAIRNESS
IN
SELECTION
PROCEDURE

TRAINING EMPLOYEES

FAIRNESS &
STANDARDS

CONDUCTING ETHICS
TEST

BLUEPRINT
FOR
ETHICAL
FUTURE

PERFORMANCE
APPRAISAL

REWARDS AND
DISCIPLINARY
SYSTEMS

BLUEPRINT FOR
ETHICAL FUTURE
ENSURING FAIRNESS IN SELECTION PROCEDURE
Formal hiring procedures that test job competencies
Respectful interpersonal treatment of applicants
Feedback provided to applicants
TRAINING EMPLOYEES
How to recognize ethical dilemmas
How to use ethical frameworks to resolve problems
How to use HR functions in ethical ways

 FAIRNESS & STANDARDS

POSSIBILITY OF
BLUEPRINT FOR
ETHICAL
ETHICAL FUTURE
SUSTENANCE

To send the signal that fairness is paramount, standards should be clear,

employees should understand the basis upon which they will be
appraised, and the appraisal itself should be objective
To the extent that behavior is a function of its consequences, the
manager needs to reward ethical behavior and penalize unethical
behavior

CONDUCTING ETHICS TEST

Employees are encouraged to apply a quick ethics test to evaluate whether what
theyre about to do fits the companys code of conduct

HR managers interviewing applicants also need to make sure the screening process
is fair

For all practical purposes, ethics training is mandatory

TESTING THE
ETHICS QUOTIENT

SAMPLE ETHICS
QUESTIONNAIRE

POSSIBILITY OF
BLUEPRINT FOR
ETHICAL
ETHICAL FUTURE
SUSTENANCE
PERFORMANCE APPRAISAL

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

Standards are clearly defined

Employees understand the basis for appraisals

Appraisals are objective

REWARD & DISCIPLINARY SYSTEMS

Punishing unethical conduct and rewarding ethical behavior

FOSTERING EMPLOYEE PERCEPTION OF FAIRNESS

Involvement in decision

Understanding through explanation

Setting expectation and standard

THANK YOU