Ethics in Human Resource Management

Human resource management deals with manpower planning and development related activities in an organization. Arguably it is that branch of management where ethics really matter, since it concerns human issues specially those of compensation, development, industrial relations and health and safety issues. There is however sufficient disagreement from various quarters. There are different schools of thought that differ in their viewpoint on role of ethics or ethics in human resource development. One group of thought leaders believes that since in business, markets govern the organizational interests and these interests are met through people, the latter are therefore at the highest risk. They believe that markets claim profits in the name of stakeholders and unless we have protocols, standards and procedures the same will develop into a demon monopolizing markets and crushing human capital; HR ethics are become mandatory. There is another group of ethicists inspired by neo-liberalism who believe that there are no business ethics apart from realization of higher profits through utilization of human resources. They argue that by utilizing human resources optimally, there is more value creation for the shareholders, organization and the society and since employees are part of the society or organization, they are indirectly benefited. Nevertheless ethics in human resource management has become a perennial debate of late! Discussions in ethics in HRD stem from employee relationships and whether or not there can be a standard for the same. Employee rights and duties and freedom and discrimination at the workplace are issues discussed and covered by most texts on the topic. Some argue that there are certain things in employment relationship that are constant, others disagree with the same. For example, right to privacy, right to be paid in accordance with the work (fair compensation) and right to privacy are some areas that cannot be compromised upon. The kind of market system affects business and HR ethics; the latter thus becomes negotiable. In occupations where the market conditions do not favor the employees it is necessary to have government and labor union interventions in order to control the possible exploitation. In free market system, employees and the employer are almost equally empowered, negotiation create win win situations for both the parties. Government or labor union interventions become harmful. Globalization has brought about the concept of globalizing labor, trade unions have started to decline and the role of HR as such in issues like employee policies and practices has become a debatable topic. In fact many people are of the opinion that HR is nothing but an arm of the stakeholders through which major strategic and policy decisions are divulged geared towards profit making! Thought there can be no single opinion on ethics in HR that is convincing. Market in itself is neither an ethical institution nor unethical and no policies and procedures alone cannot govern and align markets to human wellbeing. However the requirement of such policies and procedures can also not be denied. In lieu of this HR ethics should take care of things like discrimination (sexual, religion, age etc), compensation, union and labor laws, whistle blowing, health and safety of the employees etc. Examples of unethical business practice in HRM: Off-shoring and exploiting cheap labour markets; Using child labour;

Reneging on company pension agreements; Longer working hours; Increasing work stress; The use of disputed and dubious practices in hiring and ring of personnel.

How far do you agree with the following list of HR objectives? In recruitment and selection: ensure that all assessment measures are fair and just. In reward management: ensure fairness in allocation of pay and benets. In promotion and development: ensure equal opportunities and equal access. Ensure a safe working environment in both for all employees. Ensure that procedures are not unduly stressful, and that the needs of employeesworklife balance are not compromised. When redundancies occur, to be fair and just in handling job losses. Deal effectively with all forms of bullying and harassment. In outsourcing and offshoring: ensure that contractors, consultants and franchiseesare fair and honest in their dealings with employees, clients and customers.

The ethical concerns of personnel managers A survey of over 1,000 US personnel managers (Danley et al., 1991) found that the mostcommon areas causing ethical concern were: favouritism in hiring, training and promotion; sexual harassment; inconsistent disciplinary measures; not maintaining condentiality; sex discrimination in promotion, and pay; and non-performance factors used inappraisals. Law vs. Ethics?

Conflicts of Law and Ethics.

Example: Legal but unethical?

Jim Crow laws that required discrimination against Black Americans

Example: Ethical but illegal?

Provide service in violation of Jim Crow laws to a Black American in a restaurant Help a holocaust victim escape from Nazi Germany

Laws in Nazi Germany that contributed to the holocaust

Rights Principle.

Is there a conflict of moral rights? If so, decide whose rights take precedence
Distributive Justice Principle.

What competing interest is being protected by each conflicting right? Which competing interest is more important? Give precedence to the right that protects the more important interest.

What action produces a fair distribution of benefits and costs for all of the stakeholders?
What action provides all stakeholders with equal liberties and equal opportunities
Care Ethics Principle.

but allows for differences in results based on differences in contributions

while helping those in need to the greatest extent possible?

What action appropriately cares for your own needs and also appropriately cares for those people with whom you have special relationships (e.g., family, friends, coworkers, supervisors, employees, customers, suppliers, stockholders, etc.)?
Care appropriately for those with whom you have a relationship, especially those who are vulnerable and dependent on you Nurture the ability of those with whom you have a relationship to make their own choices and live their own lives Do not base relationships on domination, oppression, hatred, violence, disrespect, injustice, exploitation, etc.

Virtue Ethics Principle.

What action displays virtuous character traits?

Does the action display virtues such as benevolence, civility, compassion, conscientiousness, cooperativeness, courage, fairness, generosity, honesty, industriousness, loyalty, moderation, self-control, self-reliance, or tolerance? Or does the action display vices such as cowardice, deceit, dishonesty, laziness, neglect, or selfishness? Take the action that displays virtues, not vices.