ETHICS IN HRABHISHEK 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?

Examples of Ethical Violation

Possibility of Ethical Sustenance in HR

Blueprint for Ethically Enlightened Future

• 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

WHY ETHICS IN HR?

• Accepting payoffs

• 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

EXAMPLES OF ETHICAL VIOLATION IN HR

PRACTICES

• 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%• Giving or accepting bribes, kickbacks, or inappropriate gifts 3%

*From a KPMG report, the table presents the percentage of employees observing various unethical behaviors at work

SPECIFIC OBSERVED UNETHICAL BEHAVIOURS*

• Discrimination in hiring-

Duke 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 Germany-

Case of restricting vs. protecting privacy of employees

THE WALMART CASE

LESSONS FROM THE MAHABHARAT

THE CHOICE OFTHE PRINCE

• Create a Code of Conduct

• 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

PREVENTION OF UNETHICAL BEHAVIOUR

• The top management should be committed to ethical behavior and be role models

• 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

POSSIBILITY OF ETHICAL

SUSTENANCEEthics can be sustained in the organization by adopting the following practices:

BLUEPRINT FOR

ETHICAL FUTURE

CONDUCTING ETHICS TEST

PERFORMANCE APPRAISAL

FAIRNESS & STANDARDS REWARDS AND DISCIPLINARY SYSTEMS

FOSTERING EMPLOYEE PERCEPTION OF FAIRNESS

TRAINING EMPLOYEES

ENSURING FAIRNESS IN SELECTION PROCEDURE

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

POSSIBILITY OF ETHICAL

SUSTENANCE• FAIRNESS & STANDARDS

• 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 they’re about to do fits the company’s 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

BLUEPRINT FOR ETHICAL FUTURE

TESTING THE ETHICS QUOTIENT

SAMPLE ETHICS QUESTIONNAIRE

POSSIBILITY OF ETHICAL

SUSTENANCE

BLUEPRINT FOR ETHICAL FUTURE

• 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